Day trading entry techniques

The following day trading entry techniques will help traders find high profit potential, low risk day trading entry points.

First, use trend line for a day trading entry point

I think every beginner can draw a trend line on the chart. (shown below)

1. If the price could break out the falling trend line, you can identify a good day trading entry point.
2. If it bounces off resistance line, you should look to go short.

Second, looking for day trading entry points using support and resistance levels

I think how to trade support and resistance levels is the basics of day trading.

1. When the price passes through the support and resistance lines, you can play breakouts.
2. When it would rise after bouncing from a support line, you can decide to go long.

Third, using grid trading strategies to find entry and exit points 

I place multiple trades forming a grid pattern without guess the direction of the trend.

Although, many day traders think hedged grid trading strategies can not make a lot of money, I think it is the best day trading strategy 

For instance: the grid trading will work in range markets. I want to set up a grid on GBPUSD.

On the other hand I will use 0.01 to 0.02 lots for a $3000 account.

A few words of caution…

1. All the day trading entry techniques come from demo trading. It can help you build confidence and find a weakness.
2. Just focus on one currency pair. Then practice, practice, practice. whatever job, need to constantly practice.

Further reading Simple Way to Trade Trendline Breakouts

Forex day trading tips for beginners

Below is my Forex day trading tips for beginners. Like any business, day trading must begin at the bottom of the ladder. All the greats start out in day trading log and demo.

Day trader's attitude

• If beginners want to forex day trading, there must be a down-to-earth working attitude. 
• Many day trading beginners have failed partly because they are only interested in making quick money
• I think a positive, professional attitude can help you create successful in the trading. 

More reading Jiro dreams of Sushi

Day trading quotes

Jiro Dreams of Sushi quotes can be used in forex day trading. You should read them. 

Once you decide on your occupation... you must immerse yourself in your work. You have to fall in love with your work. Never complain about your job. You must dedicate your life to mastering your skill. That's the secret of success... and is the key to being regarded honorably.

I do the same thing over and over, improving bit by bit. There is always a yearning to achieve more. I'll continue to climb, trying to reach the top, but no one knows where the top is.

These days the first thing people want is an easy job. Then, they want lots of free time. And then, they want lots of money. But they aren't thinking of building their skills. When you work at a place like Jiro's, you are committing to a trade for life.

Forex day trading is a boring job

Successful day traders do repetitive work every day. They will stick to the rules when day trading.

• Write a day trading business plan.
• Write a day trading checklist before every trade.
• keep day trading journals excel.
• Learn to trade forex with a demo account.
• Develop a solid, profitable forex day trading systems that fit your personality.
• Manage risk when trading FX

At last, forex day trading require enough money, at least $100000. You'll likely have to save up money.

Forex day trading strategies

After you have written a forex day trading plan, you must develop solid day trading strategies. Now let's learn together, how to day trade.

Best grid trading strategy

A lot of day traders never used forex grid trading strategies. They believe it can blow up their trading account.

In fact, it is a very profitable strategy. I will mainly discuss the one direction grid trading system.

Forex grid trading strategy setup

First, selecting the best pairs to trade. I want to stick with the major pairs or GBPJPY.

Second, choosing the best chart time frame for day trading. Usually, I will use the one hour chart, 4 hour chart.
.
Third, choosing 3 forex indicators. They are ADX, RSI and moving averages.

Fourth, writing a forex trading checklist before every trade. It can help me find day trading entry and exit points.

Running my day trading strategy

First of all, I will use multiple time frame analysis to find better entry and exit points.

Second, if I have identified the direction of the trend on the 4 hour chart, I will use one direction grid trading system on the 30 minute chart.

Here is my USDJPY example:

Through the 4 hour chart I have found that the price break below the trend line. So I will choose the one direction grid trading on 30 minute chart.

• My grid spacing is 20 pips
• My grid lot size is 0.02 lots
• My take profit is 40 pips and set a static stop of 50 pips on every position.
• I place buy limit orders near support lines 
• I place sell limit orders near resistance
• Every day I will set new forex limit orders.

Forex day trading rules

Only when we follow closely the forex day trading rules, we will make money in trading business. Now let's talk about my basic rules of one direction grid trading.

Explanation of grid trading:

• I will deposit $2,500, starting lot 0.01, Max Open Order 15
• 50:1 is the best leverage that I should use.

Define and trade with trends

I often use the following tricks to determine forex trends. 

• Use my eyes to feel the market.
• Draw a trend line to identify the main trend
• Use moving average crossovers to enter trades
• Use Bollinger bands to gauge trends
• Use ADX indicator to identify trend

Then I will put these FX indicators into a Pre-trade checklist. I think it can help me find day trading entries and exits.

Let me repeat that: I will write a day trading checklist every day. It can help me identify the main trends.

Find entry and exit points

• If I have identified the uptrend on the 4 hour chart, I will only look for buy signals.
• If I see that the pair is clearly in a downtrend on the 4 hour chart, I should only find sell signals.
• If I defined a currency pair is in a range-bound market, I have to be patience.

Use stop-loss and take-profit in grid trading

• Only I have identified the trend reversals on the one hour chart, I will close out all my positions.
• I will use a 50 point trailing stop on every position.

Forex day trading rules

Forex day trading rules can help beginners design trading business plan, day trading systems and start day trading.So that you can make money in the forex markets.

First of all don't use all the available of funds which helps you fight the greed factor. 

Second just focus on one currency pair. Forex Day trading beginners like to buy various currency pairs.It is equivalent to using all of the available funds.So you must limit the number of options.

Third under pressure play the right trade.Maybe every successful day trader will encounter stress.Please Instead of thinking about winning the match and knowing the pressure of the point.The successful day trader must remember what will get him to victory, and that is consistency and aggressiveness.

Fourth set a forex day trading business plan.Many day trading beginners never develop a day trading and emergency plan.A day trading is a long arduous struggle that has a momentum and changes. Generally day trading is determined by subtle strengths and weaknesses in mental toughness or physical fitness.The day trading business plan aids to evaluate your own game and to learn how to scout and play your opponent. So day trading beginners must set plan before day trading.

Fifth forex day trading systems should be tailored to the market and setting.First of all you should analyze the present market in a day trading journal.And then decide what systems to use.

Sixth the successful day trader strives for consistency and to reduce errors.For instance you should set the day trading business plan in advance.Don't try to win the game.

Seventh trade with purpose.The successful day traders understand that more trades are lost than won. Understanding this enables them to avoid the high risk trades and consistent with a purpose. The more important rule is being able to trade the right shot at the right time.

Basics of forex day trading rules for beginners:

1. Don't use all of the available funds
2. Just focus on one stock
3. Under the pressure play the right trade.Forget the winners that your opponent trade just play.
4. Play with a day trading plan.The advanced trader watches what his opponent does and keeps a record as to what he is avoiding.
5. Day trading systems should be tailored to the market
6. Keep moving and aware of your balance.The veteran traders use position sizing strategies.So you should learn to adjust position size.
7. Strive to trade technically correct shots during the day trading.
8. Visualize your shots as you trade them, mental pictures produce physical results.It is a veteran trader skills.
9. What's more day trading rules are different between every stock.Specifically day trading systems should be tailored to the stocks.
10. Also as a day trading beginner should choose a good liquidity and volatility of the stock.Because it offered the best price.
11. hedging stock positions.It is the successful day traders skills.If you aren't ready to hedge positions, at least reduce position-sizing.

More reading :the rules of gambling

Day trading stocks for beginners

Remember that everyone in the stock market is smarter than you.And day trading require a lot of work and sometimes a lot of dedication before seeing a return on your time.In this article,we will take a look at day trading stocks.And how to day trading stocks for a living.

First as a beginner set some day trading tips.

1.Don't expect to make money in the stock market.The successful day trader has stock observation card and day trading journal.Because day trading is a business,would have a serious work attitude.

Day trading stocks track record card for beginners

More reading best day trading books

2.Day trading is a lucrative business, but also fraught with risks.So consider the risks.Don't use all amount of funds.Moreover you can only focus on one stock.

3.Set a day trading business plan.Day trading systems should be tailored to the stock and setting.

4.Position sizing strategies.Some successful day traders use kelly formula.And I advise you use half-kelly.

More reading How do you limit drawdown using kelly formula.

5.As a day trading beginner would first pick a high volatility stock.Then Obviously you have to decide the general trends.And the global stock market trends.We rely mainly on the 2 indicators:

• The ADX indicator reads above 20
• The price above or below the 25 EMA.

6.At last practice,practice,practice,I can't say it enough! Demo day trading stocks can learn more about yourself.After 100 demo day trades and get 1% profit every month and you can start day trading stocks career.

Day trading stocks strategies for beginners

Now we'll show the day trading strategies.It includes:

1. Multiple time frame trading strategies
2. Grid trading strategies
3. Asset allocation

Multiple time frame trading:

The first day trading stocks example is NASDAQ: Microsoft

Day trading stocks for beginners MSFT monthly chart from sina

First of all even daytrading would analyze Microsoft monthly chart. It's in an uptrend.So as a beginner would only buy.

More reading how to reading a chart

Second read the Microsoft weekly chart.Looking for support and resistance level.You would start day trading based on support levels.Or trend lines,exponential moving average,Fibonacci levels,52-week low,pivot points.

• The resistance level $58.7
• 52-week high $58.7

So $57.25 is not a best day trading entry point.You have to find the entry points on support levels.

• The support level $50
• 52-week low $47
• The support level $56-$53
  

Day trading stocks MSFT weekly chart from sina

Thirdly read daily chart and 30 M chart.Also you should pick entry and exit strategies.

Grid trading strategy/Martingale strategy:

So you'd better firstly buy 100 shares of $MSFT at the $56 market price.Then the second buy 200 shares of $MSFT at the $55.At last you can close out 200 shares at the $56.And 100 shares at the $57.

Best day trading stocks to watch

Here I list the best day trading stocks.As a day trading beginner,I advise you only pick one stock.

First NYSE:GM Use the "buy low sell high" strategy.

• Support level $27.5-$30 and resistance level $32-$35
• 52-week low $26.69 and 52-week high $36.88

Day trading stocks General Motors Co beginners from etoro 2016

Second NASDAQ:AMZN Use the "buy in an uptrend" strategy.

• Support level $790-$800 and the second support level is $700-$750
• 52wk range $474-$847.21

Day trading stocks Amazon beginners from etoro

Third NYSE:BAC

stock Bank of America from etoro

Fourth NASDAQ:Cisco


Cisco from etoro

Fifth NYSE:WFC 

Day trading secrets exposed

Today I will expose some day trading secrets. 

3 essential tools every traders need

Every novice trader is looking for day trading secrets. They think there must be a simple day trading rule to make money easily. As a matter of fact, "success comes from hard work".

So, many veteran always continue to write a day trading plan, keep a day trading journal and practice trading with a demo account. 

Day trading system revealed

First, let's set the day trading rules:

1. You have to pick one currency pair with a depth of liquidity and volatility.
2. You have to trade with the grid trading strategy.
3. You have to protect your trading capital in the Forex market.

Second, I will develop a solid, profitable day trading system. For instance, lazy grid trading system.

• Forex trading indicators: the Relative strength indicator, the Average directional index, 
• Forex trading sessions: any
• Preferred Currency pairs: majors. For example, USDJPY

I will use a trend line to identify the direction of the trend on the four hour chart. I think that it is very important to start the trade.

Notice that the 4 hour chart of the USDJPY could breakout through the trend line. So I will only set the sell limit orders on the 30 minute chart.

1. I trade USDJPY on the 30 minute chart
2. My grid spacing is 21 pips
3. My grid lot size is 0.01 lots
4. My take profit is 42 pips and can't set stop loss order.
5. I place sell limit orders near resistance lines 
6. Every day I will set new forex limit orders
7. When the forex market is trending, I will use a buy-and-hold strategy.

There is no a 100% winning day trading strategy. You have to open a demo account and test the new trading strategy.

At last, what follows is a brief summary of the day trading secrets

1. Identify the general trend on the four hour chart.
2. Protect your trading capital in the Forex market.
3. Just pick the one currency pair for day trading.
4. Use the Buy low, sell high strategy
5. Ride winners, cut losers
6. Day trading is a business and run it on business principles.
7. Keep day trading journals and track records.
8. Create a Day trading plan and analyze the day trading track record.
9. Use the grid trading techniques or Martingale trading strategies.
10. Use multiple time frames analysis to find the entry and exit points.

    

    day trading secrets exposed

Further reading: How to Use Multiple Time Frame Analysis to Find Better Entry and Exit Points

Day trading success secrets

We will continue to look for more best secrets to successful day trading.

Choosing your trading style to suit your personality

Why 90% of day traders lose money? I think day trading might not suit all traders. You must open a demo account and test your day trading systems. Then you can start day trading for a living.

Selecting the right currency pairs to match your trading systems

There is an old saying that break a fly upon a wheel. So we have to choose the best currency pairs to trade. 

• If you want to trade majors, you had better to use the moving average strategy
• If you want to trade GBPUSD, you could use the grid trading system

A lot of professional traders suggested you stick with the major pairs when day trading. Because they have plenty of liquidity and less chance of erratic moves and spikes.

Choosing the best chart time frame for day trading 

  

Generally speaking, I will check out one hour and four hour chart. Because I'm used to multiple time frame analysis to find day trading entry and exit points.

I suppose you should practice forex trading with a demo account. It's risk free!

Now you must have been aware that my best day trading secrets, practice new trading systems with a demo account.

Best three trading indicators

I will choose three day trading indicators, Average Directional Index, Relative Strength Indicator and the 20-period Moving Average.

I am going to keep my trading as simple as possible!

Developing a trading system that fits your personality 

I am used to grid trading forex systems. I feel comfortable while using it.

I believe you must find a best day trading strategy that are right for you. The only way to do this is to trade a demo before you dive in. 

Tailor your position size to fit the risk of the trade

I will use the position sizing strategy and improve my risk management principles.

Maybe in beginner eyes, day trading is always full of mystery. They want to know the best day trading secrets. As a matter of fact, success comes from hard work and execution!

How to become a successful day trader

How to become a successful day trader? I believe that it will not be easy. In 2007, I began to trade stocks and Forex full-time. You maybe guessed the results. 

I analysed the reason of failure and found I didn't have enough money and never followed my day trading plans. 

After reading a lot of day trading books for beginners, I start to make a day trading plan and stick to it. Now I have been able to trade for a living. Today I will show how to be a successful day trader.

First, I suggest learning day trading with the free online education courses. For example, Investopedia, stocktwits, Babypips, Forex factory, Dailyfx.

Second, many beginners just want to make a lot of money. But veteran traders think trading is a business and run it on business principles.

Third, you have to develop a day trading plan and keep a day trading journal.

• What are your day trading goals? I want to set a daily goal about 0.1%.
• Which stock is going to pick? I should pick a good liquidity and volatility of the stock.
• What about your day trading strategies? For instance, the grid trading strategy.
• How much money to start day trading for a living? About $10000
• Which time frame will you choose? I will use the multiple time frame analysis, So I will choose the four hour and one hour chart.
• If prices are bound between support and resistance levels on the four hour chart, I will use the bidirectional grid trading strategy.
• If I had identified the direction of the trend on the four hour chart, I will trade with the one direction grid trading strategy.

Fourth, practice, practice, practice, I can’t say it enough! You have to open a demo account and practice the new day trading strategy. 


Fifth, don't forget to review your day trading journals. It can improve your trading performance.

At last, if you want to make more money in day trading, you have to share trading experience on the twitter, and write down the day trading tips and rules on a piece of paper.

If you’re serious about learning how to become a successful day trader. I guarantee it will be one of the best things and it will change life and the rewards will be forever!

More reading What is it like being a self employed day trader?

How much money do I need to start day trading for a living?

How to become a day trader with little money

I think you can go to the forex trading market or options trading market. But here I want to remind you that they carries a high level of risk and may not be suitable for everyone. You may lose more than you invest.

First, many best forex brokers offer Mini & Micro accounts. Therefore, you can start day trading with little money. Below is my list.

1. Oanda
2. Alpari
3. FXCM
4. Forex
5. Fxpro
6. XM
7. IC markets
8. eToro
9. Pepperstone
10. Exness

Second, you should demo trade until you develop a solid, profitable system. I believe only in this way can become a day trader with zero risk. 

Third, if you just have less money to day trade business, you must avoid common forex trading mistakes and big losses. 

In addition, you must learn day trading with babypips, forex factory or Dailyfx. They offer free online trading courses. I think you will have a good feeling for how to be a professional day trader.

How to day trade beginner stocks successfully

Some day trading beginners asked how to day trade stocks successfully?Now I am going to answer the questions.

First of all as a beginners ought to pick a good liquidity and volatility stock.It is the best way to make money.

For instance, the KFFB does not have a very high volume.

the day trade beginner stock from sina

The second example pick the Nasdaq:AAPL. Please compare the KFFB and AAPL. Clearly the beginner only pick AAPL.

The day trade beginner stock AAPL from sina

Second the successful day trader has stocks day trading track records card and day trading journal.Stocks day trading track records card is to help decide market trends.

More reading how to trade in stocks by Jesse Livermore

Third read weekly figures to decide general trend.

Fourth recognizing a good day trading entry point is the first step in achieving a successful day trade.So we have to buy day trading stocks in an uptrend.And looking for support and resistance level.

Most of all as a beginner you must learn how a professional traders trading.

Fifth grid trading system.Most of all never use full amount of margins.By the way ought to check two times before open an order.This can prevent errors.

Sixth as a day trading beginner only focus on one stock.

Seventh reduce the risks.You needn't always make money.So don't buy too many shares.Or hedging in the futures market.

For instance Mastercard The price is in an uptrend.But Sell $100.6 and it seems to be resistance level.

Mastercard daily chart from etoro 2016

McDonalds It's not in an uptrend.$114 seems to be support level, but wait for better trading opportunities.

Mcdonalds daily chart from etoro 2016

Day trading tips and tricks for beginners

Here are my day trading tips and tricks for beginners. 

Perhaps You are so tired of your dull job and would like to start day trading business from home. You believe it is very simple and you will soon trade for a living.

In fact, you are probably just starting. Now I will give you some best day trading tips. They apply to forex trading and stock trading market.

First of all, you should take the day trading business seriously. Novices are constantly finding day trading tips and tricks. They believe there must be shortcuts to success. Yes, there is a day trading secret in the world. That's success comes from hard work and execution.

Second, you should build a day trading plan and keep a day trading journal. Many beginners just want to earn extra income. They don't treat day trading as a important business.

Third, develop a solid day trading strategy that fits you. I think day trading is not for all traders. Therefore, you should know the different types of trading styles. The following is my day trading strategy:

• I will use a trend line to identify the major trend on the four hour chart.
• If I had spotted a trending market, I will use the 10 and 20-day moving average crossovers on the one hour chart.
• Once I have identified a ranging market, I will use the grid trading strategy on the one hour chart.

Fourth, novices want to make a lot of money as soon as possible. They ignore risk management when day trading. In fact, you have to set day trading profit goals.

Fifth, I think you have read many best day trading books. Now it's time to forget the popular day trading strategies of the books. You should analyze, track and measure your day trading performance.

Sixth, you must open a demo account and practice, practice, practice your day trading strategies, I can't say it enough! 

• You should take demo day trading seriously.
• You should write a day trading plan and keep a trading journal with the demo account.
• You should develop a solid day trading strategy with the demo account.

Best day trading tricks for beginners

I have evolved a lot of ticks in my day trading career. Today I am going to explain my best day trading tricks for you.

First, write a quick checklist before entering trades.

In the beginning of my trading career, I often missed the real entry and exit points. So I often ask myself: how will I find the entry and exit points in time? I think there is only one right answer！

Second, every day trader should know the best chart patterns.

You think only use day trading indicators will be enough? I know that's not enough. You can't afford to forget the top 10 chart patterns. For example:

• Reversal patterns
• Bullish flag
• Double top and bottom
• Cup and handle

Third, 5 tricks to trade with trends while day trading

Even if I am a day trader, I don't want to miss any major trend on the daily chart. These are my tricks.

• Use my eyes to determine the direction of the trend.
• Draw a trend line to determine the major trend.
• Spot trends with MACD indicator
• Use ADX indicator to find day trading trends
• Identify a trend using Bollinger Bands

Fourth, 4 simple day trading tricks for selecting great day trading entries

• Use multiple time frame analysis to find better entry and exit points.
• Draw a trend line on the chart to identify an earlier entry point
• Use MACD & Bollinger Bands to time entries and exits and stay in trends
• Use ADX indicator as an entry and exit filter

Fifth, position sizing techniques in day trading

Novice traders often trade a fixed lot size. I don't think it is a best money management strategy. 

In contrast, professional day traders will use position sizing techniques to increase profits. For example: grid trading systems, martingale trading systems or pyramid trading systems.

Next I will show you grid trading strategy.

First, even I am a day trader, I wouldn't like to miss any main trend on the 4 hour chart. So I will use a 20 day moving average to identify the trend direction.

Second, I will set up a grid on AUDUSD and use 0.01 to 0.02 lots for a $3000 account.

Third, once I have identified an uptrend on the 4 hour chart, I should decide to go long a currency on the one hour chart.

Fourth, when the day trading markets are mixed, I will close all positions.

At last, I recommend you to open a day trading demo account and practice the grid trading strategy.

Don't try to find the best day trading tips and tricks. You have to write a day trading plan and keep a day trading journal. I believe that it is the real secret of day trading.

Futher reading: when is the best time of day to trade forex?