š¹ Basic Day Trading Strategy Template
1. Market Selection
Choose a market with:
High liquidity (e.g., stocks, ETFs, forex, crypto)
Volatility (enough price movement to generate profit)
Accessible trading hours for your schedule
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2. Tools & Setup
Charting Software (e.g., TradingView, Thinkorswim)
Broker with Low Fees and Fast Execution
Indicators (see below)
Time Frame: 1-min, 5-min, or 15-min candlestick charts
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3. Technical Indicators
Combine 2ā3 indicators for confirmation. Examples:
Indicator Purpose
VWAP Identify value area & trend bias
RSI (14) Spot overbought/oversold zones
MACD Trend & momentum confirmation
EMA (9/21) Entry/exit timing
Volume Validate breakout or fakeout
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4. Strategy Example: EMA + VWAP Pullback
š Setup
Use 9 EMA and 21 EMA
VWAP as a trend filter
ā Entry Rules
Price above VWAP = long bias
Wait for pullback to 9 EMA
Confirm with bullish candlestick pattern
Entry on close of the confirmation candle
ā Exit Rules
Target: 1.5ā2x risk
Stop-loss: Below recent swing low
Exit fully or scale out in portions
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5. Risk Management
Max risk per trade: 1ā2% of account
Daily max loss limit: 3ā5% of capital
Use stop-loss orders always
Avoid revenge trading after losses
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6. Pre-Market Prep
Scan for gappers (high volume + large % change)
Check economic calendar (news, earnings, Fed events)
Set alerts and mark key support/resistance zones
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7. Psychological Discipline
Stick to your plan, avoid emotional trades
Keep a trading journal
Review and improve based on performance
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š¹ Bonus: Common Day Trading Mistakes to Avoid
Overtrading / chasing moves
Trading without stop-loss
Ignoring news or earnings
FOMO trades outside your system
Not backtesting your strategy