Day Trade | How to do day trading? Check out the complete guide

We know that the financial market is unknown to beginning investors, most always fall for false promises of day trade, financial scams, lose money in the market, buy ineffective tools and operate emotionally unprepared.

Thinking about it we separated an in-depth content explaining what is day trade and how it works should work. This content is straightforward and easy to understand, we hope you enjoy and have a good reading!

What is day trade?

day trade they are open and closed orders on the same day in the financial market. This is a style of operation that promises quick profit from changes in an asset.

Traders must take advantage of market volatility and open orders for the trend or against the trend. THE translation of day trading means “Trade in the day” ou “Same day trading”, the translation itself reveals how this style of financial negotiation works.

What are the advantages of this style of operation?

Day trading is an advantageous style for a bold profile trader who achieves good assertiveness. An asset with a large financial volume on the day enables high profit in the market, however the average profit in shares per day is R $ 100 / day. There are other more profitable markets outside the stock exchange, such as:

  • Forex
  • Binary options
  • Crypto Signals Room

We can quote a list of advantages and the first is obvious: “Have absurd gains in a few hours”. Some people who seek financial freedom see the day trade as a path. There are risks to be assumed at the beginning and losses that must be controlled, but there can be learning, control and profit.

The day trade can be a career option, some professionals have a fixed salary and operate for banks, for example. Others live from their own experience and earn an average of R $ 9.200 to R $ 11.000 per month. But, there are those who easily exceed this average, for this to happen the trader will generally be experienced and will have emotional control and financial management.

Bitcoin day trading

It is possible to do day trading in bitcoin, this is a reality in some brokers like eToro, for example.

You can trade the cryptocurrency on the same day and take advantage of the bitcoin price variations or you can trade the BTC / USD or BTC / BRL pairs, in markets such as forex this is also an interesting option for day trading bitcoin.

How to create eToro account

Simple step by step for you to create your account in less than 5 minutes!

Step 1

Enter the eToro open an account by filling out the form or with your google / facebook account. You register in less than 5 minutes.

etoro

Step 2

After creating your account, fill in all the correct information for you to verify your identity. Send the photo of a photo document.

Step 3

Deposit with eToro through wallets: Skrill, Paypal, Neteller, Webmoney, Wire Transfer, Promotion or Credit Card. You select the currency, quantity and fill in the email. Then click next and proceed.

Step 4

After the money has dropped into your account, you can open BTC and start trading.


Visit eToro

How are day trading trades?

The negotiations involve market analysis, more precisely of the asset to be operated. The trader enters buying or selling in his operation, there is always an operational and financial risk in this case because, nothing guarantees that the market will not come against his operation.

However, good asset placement can guarantee you hits and profits in a matter of minutes.

Most traders always consider asset movements across the chart and bet on bullish or bearish trends. The market can be unpredictable, but with good technique, such as graphical and technical analysis, it is possible to base your operations on the financial market and assert. Many traders also prefer shares below 2 reais or other types of investments that may buy more shares, or a larger portion of the shares.

Is day trade stuck?

We cannot say it is a bore if you have knowledge and control in what you do! Imagine that you buy a stock and after the asset rises and appreciates in the next few minutes you earn on the day what you earned in the week or even in the month.

But, trading without consistency and emotional training can cause the trader to oscillate in the financial market, he can return the profit of the month in 1 day. Therefore, it is a two-handed way, only 2% of traders are consistent.

Most investors believe that trading is a money mine and are extremely motivated to learn how to day trade. But, this can be a love-hate relationship with the market, as many end up being disappointed. Many use different strategies such as just investing in shares below 10 reais. Others prefer more expensive stocks that can bring a different return.

It is not easy to keep thinking about the financial market, some people can't take it and freak out. Therefore, the mentality in financial operations also differentiates the amateur from the professional. You may be a long-term investor and buy stocks, but perhaps day trade is your profitable path. You need to test!

Day trade how to start?

Start studying, there are several free content on the internet about operations and live rooms for you to watch the professionals operating. The best way to operate is knowing and observing the financial market.

Never fall for false promises of courses that promise profitability, tools that promise consistency or coaches. Everything depends on you always, on your in-depth knowledge about the market you will be operating in, on your technique and your "screen time".

Screen time is the time that a trader spent watching the market, for example: the trader knows when the asset will go up or down, as he has enough experience, he has seen it happen other times, maybe this feeling is what differentiates the beginning of the professional.

Study the financial assets you will trade, especially those that have great volatility. There are also different types of assets and shares, including shares below 1 real. These are assets that achieve a great financial return in the day trade, for example, some traders trade only dollars, others prefer index or currencies. They are experts in your asset, it makes a difference !!

Day Trade Brokers

Always look for reliable brokers, such as: Avatrade, eToro, XM and FOREX.com. All are popular for you to trade.

The first step to trading is to study, the second is to find a good broker! Look for certified brokers, see how the trading platform works and test the DEMO account.

You can start on the test account until you improve your technique. Also analyze whether these brokers have fees or commissions for open orders on the same day. On the stock exchange, there are brokers that take 10% of the profit per day trade operation, this is absurd!

Day trade strategies

There are several strategies for different markets and assets, the most famous of which are:

  • Probability in the market
  • Protection zone (support and resistance)
  • Reverse Trading
  • Day Trade Scalping
  • Flow of orders
  • Momentum Trading
  • Pattern analysis of candles

These are the most used, you can differentiate yourself with a good strategy, but the interesting thing would be to know them all, have a range of strategies to use in different scenarios, for example: one strategy for high, one for low and one for neutral trend.

Day trade course

There are day trade courses in different markets, choose which asset to trade and look for a course from trusted sources. The reputation we observe on the internet is not always real, after all digital marketing can mask the results of the trader who sells course.

There are cases, where the teacher only earns money by selling course and not operating in day trading, is the if the coach doesn't play or “just a blow? It is hard to believe in people who want to help you make money without taking your money.

But there are respected professionals in the market who teach for free, some people even learn on their own and do not need any course.

YouTube is rich in material about forex day trading, binary options and the stock exchange, explore each video before deciding to buy a course.

Everything you need to know can be there. Another point to evaluate about the day trader course is that the professionals focus on teaching you what the market is and how to trade, this is so easy, as we talk about on the internet for free.

However, nobody prepares you for the market mentally, nobody trains your emotions, this is a difficult thing to pass on to a person. You can find emotional training courses for traders, it has nothing to do with psychology or hypnosis, these are boring !!

Look for an emotional training course that teaches you to understand the mind and emotions, you can only control something if you understand. You can only be a trader if you prepare your mind for it!

swing trading vs day trading

Swing trading is a trading strategy and can be confused with day trading. But, this is a short-term modality, it does not look like day trading at all, as the swing trader leaves its operation open for 2 days or even weeks.

This is a modality that lies between buy and hold and day trading. In the case of swing trading, we have a trader position, which positions itself in the market for the short term, does not quite look like buy and hold, because in this style the investor aims to win with dividends or earnings from a share, it is necessary to evaluate in addition to the asset price appreciation in the buy and hold strategy .

Otherwise, it would be interesting to perform the swing trading style. To win with day trading or swing you need to master technical analysis. But to win with swing specifically you need to consider the fundamentals of the asset, this is paramount.

If the trader believes that an asset will appreciate in 1 week, it must have a basis, after all he cannot predict the price of a share, but he can analyze and prepare for that event to happen based on the fundamentals.

Tips for the beginner trader

These tips helped you get started in the financial market.

  1. Learn how to differentiate a course salesman from a professional trader.
  2. Study all the material available and practice in the DEMO account before putting money in the broker.
  3. Save money to deposit at the brokerage and start trading, but remember to look for reliable and popular brokerages. Also do not think that operating with R $ 20 reais you will get large amounts, you need a large bank to make trades. Get ready for that!
  4. Be a trader, there are a lot of people who trade, but you are not a trader, these are the 95% who lose in the market. Only 5% are consistent, the other 95% are selling courses or buying courses, instead of perfecting their mindset.

These are valuable tips and you may have a vision of what the market really looks like. 

Choose your market

Trading stocks, dollar and index are options accessible to any individual. However, some trades prefer forex, options or binaries. Most traders start out in binaries and discover bigger and more complete markets like forex. There are also best actions for day trade, which are specifically the ones that often have greater volatility.

If professionalizing in the market is essential for the trader, some may not adapt to the stock exchange and the rates of the stockbrokers. Others are more fond of forex and evading rates. It can be the same day trading analysis for different markets.

Financial risks

The risk is great you can lose all your money in a wrong operation, you can make mistakes of amateurs, such as: erring order value, clicking the wrong mouse or analyzing wrong.

The market may turn against you at some point, in situations such as news and political crises, the financial market reacts very strongly, a financial volume that you did not foresee could enter and completely disrupt your operation.

You may think that even analyzing and doing everything right day trading does not work, but there are days of financial losses and you must accept that now. There is no escape from the market's emotional reaction to the news.

How to operate?

Buy an asset or sell in strong buying or selling pressure. You may not understand the concept of support and resistance, but this is the easiest strategy to operate. Support is where the largest buyer volume exists, that is, it is where investors do not want the price to fall, so they are represented by the bottom of the chart.

In the graphical analysis it is common to list the support and when determining the support, it is considered a possible entry point for the day trade.

The resistance zone represented by the top of the graph, is the region where the salespeople are positioned, there is a possible sales entry. See that it is a simple strategy, but based on a market principle: “financial volume, high price movement”. Who doesn't understand this, doesn't know anything about the market! You cannot go against the market, a sardine cannot with a shark.

Final consideration

We hope you understand everything you need to know about day trading, there is a positive side to this operation and you can take advantage of it with study, knowledge and mindset. Good trades!