Day trading is like a fast-paced race; you need to be ready 24 hours with your eyes on the screen and your hand on the button. The idea of day trading is simply that you open and close a position on the same day to ride the wave and take profits from the instant price movements, while escaping the overnight risks that could turn the market 180 degrees.
First, you need to choose currencies with huge liquidity, like Bitcoin and Ethereum, for example, so you can enter and exit trades quickly without losing a significant price difference. Then, technical analysis is a key weapon; follow moving averages and let the RSI indicator guide you if the price is entering an overbought area.
But the most important thing is to not let emotions fool you; fear and greed are the two main factors that cause traders to lose. That's why always set stop-loss and take-profit levels before you open a trade. And be careful, do not risk more than 2% of your portfolio on a single trade, no matter how tempting it may be.
In this fast market, discipline is what differentiates an amateur from a professional. You must have a clear plan: When will you enter? When will you exit? And how much will you lose if things don’t go your way?
Also, keep an eye on news, tweets, anything that could move the market.
Day trading is a profession before it is a hobby. If you have patience, focus, and a strong heart, you will find many opportunities to grow your portfolio day by day. And if you’re not up for the adventure, it’s best to stay away.
