How do you Day Trade?

I make enough profit on Day Trading. Everything depends on the trading day:

• daily time I spend on trading
• trading instrument I trade
• market movement
• money management I use for trading

In my Quora Blog you can find my scalping results.

and method I use in trading, with full explanation of the trading strategy:

Day Trading Strategy

Here are simple steps how you can make intraday trading and get profit:

For getting 1-2% daily, with low risks.

You can do it with any deposit, let’s take an example:

1) if you have deposit of $2,000:

• you trade with 0.05 lots - every 10 pips profit will bring you $5, it’s 0.25%.
• you trade with 0.1 lots – every 10 pips profit will be $10, it’s 0.5% profit.

0.2 lots – 10 pips - $20 profit, and it’s 1% profit.

2) if you have $500 deposit

• with trading 0.02 lot and 10 pips profit will bring you $2, and It will be 0.4% profit.

For any amount of deposit, you can count how much profit you will make if you close exact amount of pips.

It doesn’t matter what Trading Instrument you trade, market is always in movement, and it can swing in 30 pips corridor or give a 100+ pips trend. Making 2-3 orders in a day, it’s possible to collect 30 pips with risks of 12-15 pips(stop-loss or lock), so 30 pips with low trading volumes will bring you 1-2% profit.

I usually recommend putting Stop-Losses (Locks) not more than 20 pips. On some trading instruments it will be 12-17 pips, others can have higher volatility and better to use 15-20 pips.

With deposit $2,000, using 0.05 lot for trading, 12-20 pips will be $6-10, it is 0.3-0.5% of your deposit – very low risks!

In swing trading catching waves with 20-30 pips, you can get 40-60 pips with 2 orders, it’s 1-1,5% profit. Market can hit the corridor and move to 60-100 pips trend, and you will have at least 1 order that will bring you more than 2% profit.

Here is a simple strategy that can bring you constant profit:

1. open H1 chart and M5 chart on one trading instrument.
2. follow high and lows on H1 and open order on M5 chart when it draws a reversal pattern on the level.
3. put stop-loss under/over the level you are trading and wait for opposite signal.

Use Money Management rules with low risks and high aims. For this strategy, don’t use more than 10% from your deposit in trading, for example, if you have $1000, then 0.1 lot is the maximum I use. 0.1 lot is $1 per 1 pip.

So if you enter the market with 10%, use stop-losses (locks) with 15-20 pips, it is $15-20 loss, but your aims must be 50+ pips. There are situation when you expect 100+ pip, but market give you only 30 pips, and hit you with +1 pip. It happens, but in that case, you don’t lose.

2nd thing that everything depends on the market movement. Today market can bring you +2 pips, tomorrow -15 after tomorrow +75. So, it is difficult to calculate how much you can earn in a day.

You can use 20% or 50% from your deposit in trading, but you must understand what risks you will have and what profit you expect.

You can work with low risks, controlling money management from deposit, earn about 20% profit, and then take a risk, increase volumes and trade with higher risks. For security, you risk with these 20% profit you made. But in this case, you must be sure in the signals, so you don’t get losses and lose these 20%.

Remember one more thing – don’t try to earn exact amount of profit, 1% or 3% or 50% in a day. If you have aim of getting 1% and after you open an order buy/sell market go against you, your emotions can break your trading strategy and you will wait these 1% even if market already gone 100 pips against you, and make loss of 5% or 10% or even more.. Sometimes waiting for 1%, people lose all deposit!

In that case, I recommend you to follow strict rules of strategy and follow signals – where to buy/sell and stop/profit.

Follow trading strategy signals and take as much as market gives you. Market can give you much more than you expect, even 2-3 times per day by swinging trading or in daily trend, or can take your previous profit by stop-loss.

We don’t decide where market will go, Market (market makers) decides where to go. We are traders, must adapt to the market.

So don’t make fixed aims, just trade and collect pips day by day. Collecting pips is bringing profit.

Don’t trade without following money management.

If you strictly follow the rules of you trading strategy, you will get it! You can make even more if you want.

If you use these recommendations and build trading strategy by these simple rules, and use money management in trading, you will get profit! It is not difficult, it works in 80-90% market situations.

Good luck!

Dorrow Green