Day Trading Archive (Psychology, Risk, Money Management, And Day Trading Strategies)

Check out our archive and guides about day trading. We discuss all aspects of day trading—everything from psychology, risk, and day trading strategies to money management, etc.

We have started a subscription service called Trading Edges. Each month we publish a new “edge” – a 100% quantifiable trading idea that includes buy and sell signals plus code for Amibroker and Tradestation. Read more or order here:

Day trading strategies:

Or, you might want to visit our trading strategy academy.

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Day trading articles:

How to fail in day trading:

How to succeed in day trading:

Is it possible to make money day trading?

Why day trade?

First of all, day trading is very hard, and almost all day traders lose money. Thus, you must first off determine why you want to day trade in the first place. Why will you succeed? Most traders are better off investing in some ETFs or mutual funds and “forget about it”. Time will do the compounding. You work, save, invest, and get on with your life.

What tools do you need to day trade?

We like to backtest, and this is why we backtest. Thus, you need software and tools to backtest, but these days a lot can be done for free. Excel is still a useful tool, and TradingView is also free for the most basic use.

Apart from that, you need data to backtest on. That can be quite expensive, but when backtesting garbage in equals garbage out, unfortunately.

And last, you need an online broker. We use Interactive Brokers and TradeStation, and both work just fine.

These three tools are essentially all you need.

Which time frame is best for day trading?

Most traders probably believe you should trade based on tick data, minutes, or hourly data. You can, of course, but we believe the best time frame to backtest and trade on is daily data. All you need is the open, the high, the low, and the close. Assuming you have good data, that is actually all you need.

Why is this better? Because the data is more significant. Moreover, it’s easier to backtest, as well.

Disclosure: We are not financial advisors. Please do your own due diligence and investment research or consult a financial professional. All articles are our opinion – they are not suggestions to buy or sell any securities.