Jump to content

Want to start day trading?


Recommended Posts

What is day trading?

Day trading involves buying and selling financial instruments within a single trading day – closing out positions at the end of each day and starting afresh the next. Day traders buy and sell multiple assets within the same day, or even multiple times within a day, to take advantage of small market movements.

Intra-day trading is not for the part timer as it takes time, focus, dedication and a specific mindset. Day trading involves making fast decisions, and executing a large number of trades for a relatively small profit each time. It’s generally thought of as the opposite to most investment strategies, where you seek to benefit from price movements over a longer period of time.

Share with us your day trading strategies and analysis?

tastytrade and IG.png

Link to comment
34 minutes ago, u0362565 said:

My advice is don't encourage people to day trade.  Its a buzz word that every newbie comes across first, but its not how you should start trading in my opinion.

Hi @u0362565

Thanks for sharing your opinion.

CAN A TRADER CHANGE THEIR TRADING STYLE?

No trading style need be static and there is every possibility yours can change. You may be a scalper stressed by short-term price action and seeking the free time found in position trading. Or, you could be a technical swing trader who wants to learn more about the fundamentals of the events-driven approach.

Whatever your style or goals, there is always a way to grow and develop, and test your skill on the markets in new ways.

 

Below you will see the different types of traders:

image.png

 

What type of a trader are you and what is your view and take on day trading or on any of the other different types of traders and how should new traders start? Please kindly share your view and opinion. Thanks.

 

All the best - MongiIG

 

Link to comment
30 minutes ago, u0362565 said:

Don't touch Forex as a beginner would be my opinion, making sense of something that has no overall direction is hard.

Hi @u0362565

Thanks for your opinion.

Many beginner FX traders look to experienced traders for their knowledge of markets and can have a beginners edge when trading forex. Their knowledge the beginner’s presume allows them to know all the details of the market, however knowledge that can lead to hubris can come at a cost. Traders simply are looking for low hanging fruit on the charts backed by credible ongoing themes and sometimes, the gentlest approaches are best.

 

Instead of outthinking the market, there is a likely better and easier approach. Trade with the trend, use tools like sentiment and pre-trend patterns to help you position in the direction of the overall trend. Always ensure lower leverage though higher balances and using a protective stop. This may not be as exciting a way to trade as you thought was in store but it will likely lead to a more stable and lengthy trading career.

Put another way, can you think simple enough to trade well? Not all can, but the answer to the question is critical.

 

 

“If your mind is empty, it is always ready for anything, it is open to everything. In the beginner’s mind there are many possibilities, in the expert’s mind there are few.”

-Shunryu Suzuki

 

Happy Trading!

 

All the best - MongiIG

Link to comment

Beginners Guide To FX Trading | Learn How To Trade Step by Step

 

The foreign exchange market, or forex (FX) for short, is a decentralized market place that facilitates the buying and selling of different currencies. This takes place over the counter (OTC) via the interbank market instead of on a centralized exchange.

Article: Forex Trading: What is Forex? FX Trading Explained

Article: Day trading tips for beginners

DailyFX and IG.jpg

All the best - MongiIG

Link to comment

Hi @jlz

Thanks for sharing.

Pros and Cons:

Range trading:

Pros:

  • Substantial number of trading opportunities
  • Favourable risk-to reward ratio

Cons:

  • Requires lengthy periods of time investment
  • Entails strong appreciation of technical analysis

Trend trading: 

Pros:

  • Substantial number of trading opportunities
  • Favourable risk-to reward ratio

Cons:

  • Requires lengthy periods of time investment
  • Entails strong appreciation of technical analysis

Position trading: 

Pros:

  • Requires minimal time investment
  • Highly positive risk-to reward ratio

Cons:

  • Very few trading opportunities
  • Entails strong appreciation of technical and fundamental analysis

Day trading:

Pros:

  • Substantial number of trading opportunities
  • Median risk-to reward ratio

Cons:

  • Requires lengthy periods of time investment
  • Entails strong appreciation of technical analysis

Scalp trading:

Pros:

  • Greatest number of trading opportunities from all forex strategies

Cons:

  • Requires lengthy periods of time investment
  • Entails strong appreciation of technical analysis
  • Lowest risk-to reward ratio

Swing trading:

Pros:

  • Substantial number of trading opportunities
  • Median risk-to reward ratio

Cons:

  • Entails strong appreciation of technical analysis
  • Still requires extensive time investment

Carry trading:

Pros:

  • Little time investment needed
  • Median risk-to reward ratio

Cons:

  • Entails strong appreciation of forex market
  • Infrequent trading opportunities

A SUMMARY

When considering a trading strategy to pursue, it can be useful to compare how much time investment is required behind the monitor, the risk-reward ratio and regularity of total trading opportunities. Each trading strategy will appeal to different traders depending on personal attributes. Matching trading personality with the appropriate strategy will ultimately allow traders to take the first step in the right direction.

Full article: Trading Strategies and their Pros and Cons by Warren Venketas, Analyst.

DailyFX and IG.jpg

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Man, WazirX getting hacked is scary stuff. Remember how I kept ignoring the warning signs with Hotbit? Lost my whole portfolio when they just dipped out of crypto altogether. Nightmare!   So now I'm all about finding exchanges that are super regulated, haven't been hacked ever, and actually have this thing called Proof of Reserve, like a safety net for your coins.   Been using Bitget for a while myself. They list cool new projects before pretty much everyone else, which is awesome. But the real kicker? No hacks, ever! Plus, they keep a crazy high reserve ratio, like 200% - way more than anyone else, and they even do monthly reports to show everything's on the up and up. Super transparent.   This crypto world is wild, so gotta play it safe, you know? Just sharing what works for me!
    • Cocoa Elliott Wave Technical Analysis Function - Counter-trend Mode - Corrective Structure - Emerging Zigzag Position - Navy blue wave ‘c’ Direction - Navy blue wave ‘c’ is still in play Details -  Prices breached 8626 to confirm the progress of wave c (circled). Further sell-off is expected toward 5,000. Wave (ii) appears to be resisted below 9,000. Thus, wave (iii) downside is favored. The current movements in the cocoa market illustrate a clear downward trend. Cocoa is approaching the lows seen in May 2024, continuing its fall from the record high reached on April 19, 2024, at 11,722. Since that peak, the commodity has dropped by 30%. This downtrend is anticipated to continue, potentially bringing prices down to the 5,000 mark in the upcoming weeks.   Daily Chart Analysis A close analysis of the daily chart shows that cocoa completed a significant bullish impulse wave cycle starting in September 2022, when prices were around 2,000. By April 2024, this impulse wave had increased prices by over 430%, reaching the all-time high. According to Elliott Wave theory, impulse waves are usually followed by a three-wave corrective structure. The current decline from the all-time high is thus seen as a corrective phase, expected to develop in an a-b-c wave pattern.   In this scenario, waves a and b (circled) have already finished, and the price is currently in wave c. Projections suggest that wave c will likely extend to 5,000 or lower before the bullish trend potentially resumes. This expected decline is consistent with the typical behavior of corrective waves following an impulsive move.     H4 Chart Analysis The H4 chart offers a closer view of the sub-waves within this decline, showing a potential 5-3-5 corrective structure. In this structure, wave c is currently in its 2nd sub-wave, wave (ii), which seems to have completed below the 9,000 mark. The price is expected to break below the 7,000 level to continue its decline towards the 5,000 target. However, any further extension higher for wave (ii) should be limited below the 10,323 high, preserving the integrity of the corrective pattern.     Summary In summary, the Elliott Wave analysis indicates that cocoa is in the midst of a substantial corrective phase following its all-time high in April 2024. The key levels to monitor include the 9,000 mark, which wave (ii) has already dropped below, and the 7,000 level, which could indicate the continuation of the decline. The ultimate target for wave c is projected around the 5,000 mark, aligning with the typical behavior of corrective waves. This analysis highlights the importance of closely observing wave structures and key price levels to predict future movements in the cocoa market, offering valuable insights for both short-term and long-term trading strategies. Technical Analyst : Sanmi Adeagbo  Source : Tradinglounge.com get trial here!  
    • V Elliott Wave Analysis Trading Lounge Daily Chart, Visa Inc., (V) Daily Chart V Elliott Wave Technical Analysis FUNCTION: Trend MODE: Impulsive   STRUCTURE: Motive POSITION: Wave 1 DIRECTION: Upside in wave 1.   DETAILS: Looking for a bottom in wave (4) in place, after what seems to have been a clear three wave move that reached equality of C vs. A, very common target for wave C.   V Elliott Wave Analysis Trading Lounge 4Hr Chart, Visa Inc., (V) 4Hr Chart V Elliott Wave Technical Analysis FUNCTION: Trend MODE: Impulsive   STRUCTURE: Motive POSITION: Wave {i} of 1.   DIRECTION: Upside in wave {iii}.   DETAILS: Looking for a clear five wave move into Minor wave 1 to break 280$ and give us additional upside confirmation.   Welcome to our latest Elliott Wave analysis for Visa Inc. (V). This analysis provides an in-depth look at Visa's price movements using the Elliott Wave Theory, helping traders identify potential opportunities based on current trends and market structure. We will cover insights from both the daily and 4-hour charts to offer a comprehensive perspective on Visa's market behavior.   * V Elliott Wave Technical Analysis – Daily Chart* The daily chart suggests we are looking for a bottom in wave (4) to be in place, following what appears to be a clear three-wave corrective move. This move reached equality of wave C versus wave A, a common target for wave C. With wave (4) potentially complete, we anticipate the start of wave 1's upside movement.   * V Elliott Wave Technical Analysis – 4Hr Chart* The 4-hour chart indicates that we are looking for a clear five-wave move into Minor wave 1. Breaking above the $280 level will provide additional upside confirmation and signal the continuation of wave {iii} of 1. Traders should monitor the price action closely for this breakout to validate the bullish scenario.   Technical Analyst : Alessio Barretta Source : Tradinglounge.com get trial here!  
×
×
  • Create New...
us