✅ Basic Day Trading Strategy (Momentum + Risk Control)
🔍 1. Choose Your Market
Pick a market that suits your skill and availability:
Stocks (e.g., volatile tech stocks)
Forex (currency pairs like EUR/USD)
Futures (e.g., E-mini S&P 500)
📊 2. Use Technical Analysis Tools
Indicators:
VWAP (Volume Weighted Average Price) – helps identify intraday trend direction.
MACD / RSI – for momentum and overbought/oversold conditions.
Moving Averages (EMA 9, EMA 20) – trend confirmation and entry/exit signals.
Chart Patterns:
Bull flags, bear flags
Breakouts from consolidation
Support & resistance levels
🔁 3. Entry Strategy: Momentum Breakout
Setup: Wait for price to consolidate near a key resistance level (pre-market high or intraday level).
Entry:
Enter long when price breaks above the resistance with high volume.
Enter short when price breaks below support with volume confirmation.
📉 4. Exit Strategy
Profit Target: 1.5x–2x your risk (e.g., if you risk $50, aim to make $75–$100).
Stop-Loss: Place just below support (for long trades) or above resistance (for short trades).
🧠 5. Risk Management
Risk no more than 1% of your trading capital per trade.
Limit your total daily risk (e.g., stop trading after 2–3 losing trades).
Always use stop-loss orders.
⏱️ 6. Time Your Trades
Best trading times:
First 1-2 hours after market opens (9:30 AM – 11:30 AM EST for US markets)
Last hour of trading (3:00 PM – 4:00 PM EST)
📒 7. Keep a Trading Journal
Log every trade:
Entry/exit points
Strategy used
Outcome (profit/loss)
Emotions and notes
This helps identify patterns and improve discipline.
⚠️ Things to Avoid
Overtrading (only take high-probability setups)
Trading without a stop-loss
Relying purely on news or "gut feeling"
Letting emotions control your decisions
