There are many different day trading strategies that momentum traders use. Techniques such as the gap and go, red to green moves, ride the 9, dip buy reversals, and shorting. Each strategy has their own benefit and doesn’t mean that you have to been good at each trading style. Each trader has their own trading preference. The gap and go strategy is probably the most popular day trading strategy. It entails gapping stocks in the premarket where price is gapping up above the previous close price. Watch our video on day trading strategies that work for beginners.
Day Trading Strategies That Work for Beginners
- Gap and go strategy: one of the best day trading strategies that work for beginners
- Red to green moves are another great day trading strategy
- Price crossing above or below vwap
- Dip buying bounces off moving average lines
- Shorting reversal patterns
- Buying stocks at momentum breakouts and Riding the 9 ema
- Purely trading price action
- Heikin Ashi Trading Strategy
- Ichikmoku Cloud Trading System – as simple as it gets
- Momentum bull flag strategy
If you’re looking for simple day trading strategies that work then this video is going to go into a high level overview of momentum trading strategies aka day trading. One video can’t go into all of the specifics of day trading since the world of trading is so vast. So make sure to take our free day trading course if you need more help after watching this video. After you’ve taken our basic day trading course then check out our advanced day trading course.
Again, if you’re looking for simple day trading strategies that work, how to day trade stocks and what’s the best trading strategy for intraday breakouts then this article will break down some of the fundamentals to getting started.
Before we get started breaking down day trading techniques that work, it’s really important to know the brutal truth about becoming a day trader: It’s HARD! In fact, learning how to trade penny stocks is going to become one of the hardest undertakings of your life. Once you get it, you get it, and it’s so rewarding.
Do Many Day Trading Strategies Work?
OK, so time to scare you so more. The failure rate as a momentum trader is over 90%! That’s right…you’re joining an industry where the odds are completely stacked against you. If you’re looking for day trading secrets then this is a good post for you. You’re about to join a club where you’ll be trading against the best traders in the world. Don’t let that discourage you.
Make sure to check out our in depth video on how to day trade stocks below. We really highlighted the overall big picture of how to day trade stocks and what it takes to become a profitable day trader. If you’re a beginner, just take your time. Running too fast before you can crawl will get you into trouble. Set aside the time to get it done right.
We’re sorry to start this post out with a negative connotation but we wanted to give it to you straight. That’s what we’re about in the Bullish Bears community. BTW…if you haven’t joined our trading community on Facebook yet then join here. Make sure you answer the questions so we can approve you!
Now that we’ve gotten the tough love out of the way, let’s talk a little bit about day trading strategies for beginners.
If you want to become successful with day trading strategies momentum then one of the most important things to keep in mind is that proper risk management strategies will be the key to your success. Ideally, you want to have at least a 2:1 profit/loss ratio. Never risk more than you can potentially make!
What Is the Best Strategy for Day Trading?
1. Gap And Go
Undoubtedly, the gap & go is the best strategy for day trading! At Bullish Bears we will teach you how to trade the gap & go but here’s a quick rundown:
- Hunt for gapping stocks with minimum of 3% gain pre-market
- Watch for breakouts on daily charts (news is one of the best breakout catalysts)
- Yearly or all-time highs create huge breakouts
- Low floaters create the biggest volatility spikes
- Look for high relative volume
- Watch for multi-day runners after daily breakout
- Keep an eye on the shorts after 3+ consecutive green days
If you’re looking for successful intraday trading strategies then it’s best to look for chart setups that have potential daily breakouts. The best day trading strategies that work usually come with daily breakouts. We use Trade Ideas as our stock scanner of choice to find our potential plays. Their scanner ROCKS!
2. VWAP Day Trading Strategies
Vwap is another important day trading indicator than many traders pay attention to. It’s right up there with ema’s and sma’s.
Check this $ROKU VWAP trading setup from this year. Pretty solid entries and exits if you followed VWAP and VWAP alone.
If you’re looking for trading strategy examples then make sure to check out our YouTube channel and watch our watchlist videos. We have a lot of good content on our channel that will get you started if you are a newbie.
The gap and go strategy is probably the best trading strategy for intraday. The reason why this strategy is so popular is when a stock moves pre-market there’s a chance that it might run at the open. Hence the term gap and go. A stock is essentially gaping above the previous day’s close price. Learning how to buy the dip and trading red to green moves are also really popular intraday strategies.
Red to green moves are many times great day trading strategies that work. This strategy is when a stock goes up above the previous day’s close price. Many of times a stock will have further continuation up when this happens. Again, we use Trade Ideas to find these setups.
3. Ichimoku Trading Strategy
Believe it or not…many traders use the Ichimoku Cloud Trading System for one of their solid day trading strategies. It’s a simple to use system that has some pretty clear entry and exits that you can spot at a glance.
We could go on forever on day trading strategies that work but the most important thing that you could do is join our community and trade room. Learn from our community of traders. Take our free trading courses below. Watch all of the great content on our YouTube as well.
But…most importantly…make sure that you’re ready to do the hard work that’s necessary to becoming a successful trader. Proper mindset is key! See you in the trade rooms!
Foundations Of Successful Trading
1. Order Entry
Limit orders are much safer to use than market orders when stock trading. They protect your entries and exits whereas market orders are a much riskier because you don’t know what your fill is going to be. Feel free to check out our limit order vs. market order video to learn more.
Level 1 & level 2 and time and sales show the breakdown of buyers vs. sellers. They have a symbiotic relationship and work in partnership with each other. It’s important to always be aware of how many buyers and sellers are looking to potentially enter and exit a trade.
There’s lots of manipulation that happens with level 2 so that’s why it’s important to always keep an eye on time and sales. Time and sales is actual buyers and sellers and where they bought or sold at. The Level 2 data is data that is real but it does not mean that there is a bunch of buyers or sellers that actually want to buy or sell. It could be just algo’s (computers) playing games, or traders who are setting bait.
Learning how to draw support and resistance levels stock charts is critical to your day trading success. Traders are creatures are habit and finding proper support and resistance levels is essential. Exponential moving average and simple moving average lines are important indicators that traders pay particular attention too. They tell an important story on all chart time frames.
One of the best day trading secrets that we can give you is to watch for the 9/20 ema crossover. If the 9 ema points wards and pushes price up then you could ride the 9.
The pic above on CREG is a 1 min. chart that shows the 9 ema crossing over the 20 ema a little after 9:45 am. It broke high of day of $6.33 around the same time. On that green hammer pullback to the 9 ema, you could have take a position on the break above that hammer. Finally, you can ride it to the first close below the 9 ema. This strategy alone would have yielded you close to a $2.00 per share profit. Take our day trading course to learn more about trading crossovers.
Is It Profitable to Be a Day Trader?
Yes, it is profitable to be a day trader if you are consistent and keep a 1:5 risk reward ratio. Risk $0.10 for the potential to make $0.50. Make every day trade tactical. Let your runners run, and cut your losses quickly. You can make a $100,000+ per year income trading if you are disciplined and manage risk properly.
Join our stock market trading community of fun traders that cut through all the nonsense of the stock market and love to help you make money investing.