Day trading tips can come in a variety of forms. Each investor might want something different – from free stock prompts to pointers on taxes when intraday trading. In this guide, we have collated as many useful tips as possible. These range from psychology and strategy to money management and training videos. So from beginners to advanced traders, use our list of tips that can help intraday traders.
Top 10 Day Trading Tips
With a multitude of tips and tricks out there, what are the top hints you should know about?
1. Always Have a Plan
Arguably, the most important tip of all. Make sure you know what you’re buying and selling (e.g. Tesla stock), how much you’re going to trade (e.g. a fractional share) and when you’re going to trade it (e.g. market close).
A trader without a plan is destined to make mistakes and likely to lose money. Don’t put real cash on the line until you have a concrete plan of action.
2. Manage Risk
It is vital you sit down and outline a comprehensive risk management strategy upfront. This will ensure you only lose what you can afford. Without a strategy in place, your career as a day trader could be short-lived.
A good approach to risk management will include identifying stop-loss levels per trade and trading with a reputable broker.
It is also worth having an overall strategy so that individual positions do not put your entire portfolio at risk.
3. Harness Technology
With thousands of other traders out there, you need to make use of the resources available to you to stay ahead.
With this in mind, it is crucial to have clear and precise rules for when to enter and exit a trade. Charting platforms provide various tools for market analysis, and you can even test your strategies against historical data to ensure their effectiveness. Mobile apps are also available, providing instant access to the markets from almost anywhere, as long as you have a fast internet connection. The MetaTrader 4 App, for example, is a popular choice for traders.
To become a successful trader, one must never stop learning. Staying up-to-date with the latest news, using trading books, and keeping up with new trends and ideas are all essential. Markets are constantly evolving, and traders must adapt to these changes. For instance, with the rise of cryptocurrencies, traders must stay informed and adjust their strategies accordingly.
It is crucial to base your trading strategy on facts and backtest it for support. Humans are emotional beings, and trading decisions should not be based on emotions. Stick to your plan’s entry and exit rules, and do not deviate from them. Remember that there is no such thing as a perfect entry and exit, but having clear and concise rules will increase your chances of success.
If you start thinking ‘maybe I should see if this works’, think again. Be disciplined – your bottom line will thank you for it.
7. Don’t Concentrate on The Money
Focus on sticking to your strategy and let your strategy focus on making you money. This may sound counterintuitive, but having profits at the forefront of your mind could make you do reckless things, like taking tiny profits in fear of losing what you’ve already won or jumping straight in so you don’t miss a move.
8. Take Responsibility
Whatever happens, point the finger at yourself in a constructive way. Too many day traders lose and then proclaim the market, such as stocks or forex, was out for them. By not taking responsibility, you won’t learn from your mistakes. What did you do wrong? How can you stop it from happening again? Do you need to amend your trading plan?
9. Keep a Trade Journal
Keeping a record of previous trades can prove incredibly useful down the line. Software today enables you to quickly and easily store all your trading history, from entry and exit to price and volume. Your historical data is useful when trying to identify problems and amend your strategy, enabling you to make intelligent decisions in the future. You never meet a trader who regrets keeping a trading journal.
10. Know When to Stop
If the strategy isn’t working, don’t keep throwing money at it.
Start from scratch and rethink your strategy. If you’re unable to stick to your plan, it’s best to step back and avoid any risky moves. Remember that taking shortcuts often leads to trouble, and in the end, it’s not worth it.
Best Trading Platforms
Without a reliable and efficient trading platform, even the best intraday investing tips won’t yield positive results. Here are some of the most recommended trading platforms available in your area:
Beginner’s Guide to Trading
As a novice trader, you may have a basic understanding of the market and what you want to invest in. However, the trading industry is a complex field that requires fast learning to maximize your profits. Here are some essential tips for beginners:
Choosing a Market
Financial Factors
One of the crucial decisions you’ll need to make is selecting the market you want to trade in. Each market has its own advantages and disadvantages, and you need to consider your financial status. For instance, you need at least $25,000 to invest in the stock market, while the forex market requires minimal capital.
You can start day trading with as little as $50 in your account. So, how much capital do you have? Remember that all markets offer the potential for significant returns, so don’t limit yourself to stocks if you want to make a profit.
Download a few different platforms and test them out before making a final decision. Check out our guide for more information on trading software.
Timing
While some day traders tune in every day from 09:30 to 16:30 EST (for the U.S stock market), many trade for just a 2-3 hour window instead. As a beginner, this will prevent careless mistakes as your concentration wanes.
The hours to focus your attention on are:
- Forex market – Although it trades 24-hours a day throughout the week, the most popular pair, EUR/USD, is most volatile between 06:00 and 17:00 GMT. In particular, 12:00 to 15:00 GMT sees the biggest price fluctuations.
- Stock market – Start early, within the first couple of hours of the market opening, and the last hour before it closes. Focus your attention between 09:30 and 13:30 EST and 15:00 to 16:00 EST. Again, the most substantial price moves are made between these hours.
- Futures market – Hit this market early. 08:30 to 11:00 EST is when you’ll find the best opportunities. Futures markets close at different times, so do your homework first. Keep in mind that the last hour of trading also brings potential for profit.
Demo Accounts
A crucial tip for beginners is to practice with a demo account first.
They are typically funded with simulated money and provide a secure environment to experiment and hone your strategies. These platforms are also an excellent resource for gaining familiarity with market conditions, technical analysis, and platforms. Furthermore, they are free and user-friendly, so why not give them a try?
Final Thoughts on Tips for Novice Traders
By utilizing these beginner’s day trading tips, you can improve your chances of success when taking your first investment steps. It’s normal to make mistakes, but keep the above tips in mind, and you may be able to avoid most initial obstacles.
Tips for Trading Psychology
Even if you have the best strategy in the world, failing to stay disciplined and keep your emotions in check can result in lost profits. It’s human nature to feel and react with emotions, particularly when money is on the line. Fear, greed, and ambition are three of the most prevalent and potentially dangerous emotions. Fortunately, we’ve compiled a list of the top psychology tips to help you maintain a level head:
- Accept Losses – With so many trades happening every day, you’re bound to experience losses. How you react to those losses is what defines your trading career. The loss trigger may lead to revenge trading, micromanagement, and poor decisions. Instead, embrace small losses and remember that you’re doing the right thing by following risk management.
- Control Greed – Greed often influences traders in the following way: you enter a trade at $80 with a target of $95, but then it reaches $95, and you think, “I’ll just hold on a bit longer and increase profits further.”
This can end in ill-thought-out decision making. The solution: stick rigidly to your strategy. Think long term and don’t deviate from your strategy. Include in the strategy what to do if a target is reached – sell?
- Technical analysis – Use technical analysis to identify key levels of support and resistance. This will help you make informed decisions on when to enter and exit trades.
- Watch the news – Keep an eye on news events that could impact the price of gold, such as economic reports, geopolitical tensions, and central bank announcements.
Forex
The forex market is the largest and most liquid market in the world, making it a popular choice for day traders. Here are some forex day trading tips:
- Stay informed – Keep up to date with global economic news and events, as these can have a significant impact on currency pairs.
- Use leverage wisely – Forex trading involves high levels of leverage, which can amplify profits but also increase losses. Make sure you use leverage wisely and always have a stop loss in place.
- Stick to a strategy – Develop a forex trading strategy and stick to it, even during times of market volatility.
Final Thoughts
Day trading can be a profitable and exciting way to make money, but it’s important to approach it with the right mindset and strategies. Remember to manage your risk, stay disciplined, and always be willing to learn and adapt.
- So, you may be able to use other assets to support your decisions.
- Look outside – In today’s global economy, no markets move independently of each other, and gold is no exception.
Make sure to keep yourself informed about developments in other markets that may impact your trading decisions. The 2022 conflict between Russia and Ukraine serves as an example of how global events can significantly affect prices in popular markets.
- Consider investor sentiment – You can gauge current market interest by monitoring traffic on gold-related websites, as well as survey results and news events. These insights can help you make well-informed decisions.
Bitcoin
With the growing popularity of cryptocurrencies, how can you trade the most popular cryptocurrency of all, Bitcoin, more effectively?
- Understand blockchain – Although you don’t need to have a thorough understanding of the technical makeup of cryptocurrencies, understanding how blockchain works can be helpful. Once you grasp how it publicly and securely secures transactions (blocks), you can better evaluate the market’s response to significant news events, such as a major corporation integrating blockchain technology into their daily operations.
- Be cautious of volatility – Although volatility can bring potential profits, it can also obscure your trading vision. Since Bitcoin is known for its volatility, manage your risks carefully, as you cannot predict what may happen.
Knowing about its competitors is crucial to Bitcoin’s success.
- Be familiar with other altcoins – Bitcoin’s success is linked to its competitors’ success.
Understanding whether these companies are growing or decreasing in popularity can help predict future movements in the FTSE.
- Economic indicators – Unemployment rates, inflation, and GDP can all affect the FTSE. Keeping an eye on these indicators can help you make informed trades.
- Company news – Keep your ear to the ground for any news that may affect the big names in the FTSE. A positive announcement from a company like BP, for example, could potentially impact the entire index.
- Technical analysis – Charts and graphs can provide valuable insights into the movements of the FTSE.
Are there any specific FTSE tips that could help you stand out from the crowd?
- Preparation – Ensure you are ready to trade when the market opens. This means doing your homework well in advance of 08:00. If you fail to prepare, then prepare to fail. Cheesy as it may sound, it is still true.
- Quality over quantity – One of the most crucial FTSE 100 day trading tips. Many investors believe that trading in large numbers is the only way to make a profit. However, successful traders have pointed out that it is better to have two or three good trades a day than a lot of mediocre ones.
- Beware of the 1st – Many institutions like pension funds commit large sums at the beginning of each month. Ensure that any preparation you do takes into account these anomaly days.
A quick Google search will reveal daily tips for trading in ETFs, CFDs, options, and commodities. You may also come across trading tips, strategies, and techniques in PDFs. However, the advice mentioned throughout this page and in the asset-specific tips above will be applicable to almost all instruments.
India Day Trading Tips
Even the best European and UK tips may not be helpful if you are interested in markets on the other side of the world.
If you want to become the next Rakesh Juhnjhunwala, who made over $2 billion from stocks, you may benefit from free and customized tips for the Indian trader and market.
Below are the essential intraday trading tips for India:
- Trading times – The NSE has a lot in common with other stock markets, including specific times when trading volume spikes.
Between 09:30-14:30 UTC you need to dial into the market. If you’re looking for volume and volatility, you won’t want to leave your computer between these times.
- Check broker fees – There is a vast disparity between commission fees charged by Indian brokers, so it’s essential you do your homework. Zerodha is one of the best options for Indian investors.
- Utilise the news – Indian markets are extremely susceptible to news announcements, especially from big business and governments. Every second counts when you’re day trading, so you need a news outlet you can rely on. NDTV, Provfit, Zee Awaaz, and ET are all highly regarded.
Whilst all these free tips are specifically for day trading in the Indian stock market, other tips on this page, like those on psychology, may also prove useful.
Taxes
Taxes like broker fees will erode profits, as will any penalties for failing to pay the correct dues. But, with so many differences between tax systems, knowing where you stand and what your obligations are isn’t always straightforward.
The best free tips, therefore, will help you maximise your profits whilst remaining within the parameters of tax laws.
So, see the taxes page for nifty and free intraday tips on staying low cost and legal.
Live Tips
Whilst you can look to videos for everything, from pattern to cash future option day trading tips, nothing beats getting hot off the press advice.
If you can find a free trading share tips feed, you’re onto a winner.
There you can benefit from the experience of other traders in real-time as they react to the markets.Many brokerages and platforms, such as Tradingview.com, offer a safe space for traders to come together and brainstorm ideas.
Evaluating Tips
You’ll find trading tips, hints, advice and instructions all over the internet.But how do you know which ones to listen to and which ones to ignore?When you do read online tips and advice, there are three things to take into account:
- Source – Where is the tip coming from?Is it from a reliable and impartial source?Or could the source have an ulterior motive, a brokerage advising you to go for a particular type of broker for example?
- Timeframe – The efficacy of trading tips will vary dependant on what type of trader they’re aimed at.A strategy tip for long-term trading could have disastrous consequences if you apply it to intraday trading.
- Make sure you check the tips and advice are specific to the intraday trader.
- Market-specific – If you’re day trading in the cryptocurrency market, consider whether the tip you’ve just read will be applicable when you’re trading Bitcoin and Ethereum.Trading tips for the futures market may not only be useless when applied to the cryptocurrency market, they could actually hamper your strategy and increase your losses.
Final Day Trading Tips
The free intraday trading tips on this page can be used by both beginners and more advanced traders.When reading any tips, consider your circumstances.Day trading tips from Canada may not be applicable in Australia’s markets and vice versa.Plus, remember the switched on traders won’t just consider the day-to-day trading tips, they’ll also consider long-term trading psychology and risk management, because they know consistent profits come only to those who take a longer-term outlook, despite being a short-term trader.
FAQ
What Is The Best Intraday Trading Tip For Beginners?
Among our list of top day trading tips is focusing on a particular market, such as stocks, before spreading positions across multiple positions and assets.
Once you are confident in equities, for example, you can then look at forex or cryptos.
What Is The Top Tip For Day Traders?
A useful hint is to spend time at the beginning developing an effective risk management strategy.This can help minimise losses, keep you in the investing game for longer, plus it develops a disciplined mindset.See our guide to risk management for more guidance.
Where Can I Find The Best Day Trading Tips?
Our website lists a selection of useful day trading tips and tricks for novices and established investors.We consider different markets, trading platforms, strategies and more.See our guide above for useful prompts.
Where Can I Find Videos With Intraday Trading Tips?
There are several good websites with helpful day trading tips and hints.