Day trading is a fast-paced style of trading where positions are opened and closed within the same day. It requires discipline, strategy and risk management. Without a clear routine, traders often make impulsive decisions that can lead to losses. Establishing a structured day trading plan is critical to consistent success.
Preparation before the market (7:00-8:30)
Start your day by reviewing financial news, global indices and key market trends. Identify key support and resistance levels for the stocks or cryptocurrencies you plan to trade. Set up your watchlist using tools like TradingView, Finviz or ThinkOrSwim Scanner. Focus on assets with high volume (over 100k) and significant price changes (over 3%). Also look for strong catalysts behind the move, such as news events, earnings reports or major partnerships. Early preparation helps you enter a trade with a clear plan rather than reacting emotionally.Day trading is a fast-paced style of trading where positions are opened and closed within the same day. It requires discipline, strategy and risk management. Without a clear routine, traders often make impulsive decisions that can lead to losses. Establishing a structured day trading plan is critical to consistent success.
Preparation before the market (7:00-8:30)
Start your day by reviewing financial news, global indices and key market trends. Identify key support and resistance levels for the stocks or cryptocurrencies you plan to trade. Set up your watchlist using tools like TradingView, Finviz or ThinkOrSwim Scanner. Focus on assets with high volume (over 100k) and significant price changes (over 3%). Also look for strong catalysts behind the move, such as news events, earnings reports or major partnerships. Early preparation helps you enter a trade with a clear plan rather than reacting emotionally.
Trading window (9:00 a.m. to 12:00 p.m.)
The first hours after the market opens are usually the most volatile. Be aware of high volume breakouts, pullbacks and momentum trades. Combine RSI with price action and volume for better signals. For example, an RSI above 70 with rising price and strong volume may indicate a strong breakout, while an RSI below 30 may indicate a bullish divergence that may indicate a potential trend reversal. Always connect technical indicators with support and resistance levels and never rely on a single tool.
Afternoon and review (12:00-14:00)
Avoid trading during the low-volume lunchtime session as movements can be unpredictable. The last 30 minutes before the market closes, known as the power hour, often provides another opportunity for a breakout or reversal. After the trade, review all trades, including profits, losses and emotional reactions. Documenting results helps to improve strategies over time.
Risk management and discipline
Always define entry, stop-loss and profit targets before trading. Manage position size based on your risk tolerance. Consistency, preparation and discipline are the keys to long-term success in day trading.