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Keys to Profitable Day Trading

In the previous article we discussed the characteristics of scalping as a trading strategy. Today it is time for us to discuss a more general and broader term, but a much less troublesome trading style (some would disagree). Why traders' attitudes to day trading vary so much, and how to make it safer for you, is the subject of today's article.

As the title suggests, day trading involves buying and selling stocks, currencies, futures or options within the same day. The aim is to make a profit by taking advantage of small price movements. Unlike long-term investing, day trading is a short-term strategy that requires constant monitoring of the markets. Day traders typically, but not necessarily, use technical analysis to identify short-term trading opportunities. They rely much more on news and recent market data, though.

Day trading includes the scalping strategy discussed in the previous article, but differs from it in that it does not always involve quick one-to-ten minutes trades. Another key difference between day trading and other trading strategies is the level of risk involved. However, this increased risk factor is coupled with the potential for higher returns ― an attractive feature for many traders. As a result, it is generally accepted that day trading is not suitable for individual traders, but rather a strategy for banks and large brokerage firms: these market participants have sufficient resources to profit from such activities.

However, if you are considering day trading for yourself, consider the higher returns factor as an argument FOR day trading, especially if you choose a reliable and respected trading software, such as MetaTrader, offered in various versions by Grand Capital to clients. Another advantage of day trading for you to think of is that traders do not hold positions overnight. This helps to avoid the risk of unexpected market changes that can occur during after-hours trading, such as earnings reports or political news that can significantly affect stock prices and appear while you are sleeping or enjoying the earnings of the passed day.

However, day trading requires a lot of discipline and focus from the trader and can lead to emotional trading if the trader is not careful, hence the potential large losses. In order to manage profitable day trading, traders must keep the following points in mind:

  • Firstly, traders must focus on having a solid understanding of the market in which they are trading. This includes staying abreast of the latest news and events that may affect security prices.
  • Secondly, traders must have a sound risk management strategy. This strategy should include the setting of a stop-loss
  • Finally, traders must have discipline and patience.

With that in mind, your day-trading has a potential to beat the statistics and wash off the cold-hearted attitude of amateur and professional trading communities. The reliable broker is the risk-diminishing factor here, as well as the correct choice of a trading account. There are the whole six types of real trading accounts at Grand Capital for you to start exercising your day-trading skills right away. Wish to train first? We have three demo accounts for you too. For those wishing to get more details before opening an account, there is our Client Support team at your service. Reach it in your Private Office, in the Online Chat (bottom right corner of the website) or at

Good luck!


Penulis: GC
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