Day Trading Strategy for #日内交易策略 : Capture the Logic of Making Money from Daily Fluctuations
Day trading, simply put, means opening and closing positions on the same day without holding overnight, relying on capturing short-term price fluctuations to profit. For retail investors, this is a good choice to avoid overnight risks (such as sudden policies or fluctuations in international markets), but having the right strategy is key to success.
Core Logic: Capture Trends, Find Turning Points
Day trading often follows a cycle of 'Consolidation - Breakout - Trend'. The first 30 minutes of the morning session is often a period of concentrated emotional release, where one can observe trading volume and price slope: if volume increases and the pullback is small, it may indicate an upward trend; conversely, be cautious of a downturn.
Practical Strategy Sharing
- Moving Average Crossover Method: In a 5-minute chart, when a short-term moving average (e.g., 10-day moving average) crosses above a long-term moving average (e.g., 30-day moving average), go long; when it crosses below, go short. It is more reliable when combined with signals of increased trading volume.
- Range Breakout Method: First determine the price fluctuation range during the morning session (for example, the high and low points of the first 30 minutes). When the price breaks above the upper band with volume, follow up with a long position; if it breaks below the lower band with volume, follow up with a short position, setting stop-loss within the upper or lower band.
Key Reminders
Day trading requires a very high level of mental discipline. Do not let a single stop loss exceed 1%-2% of your capital, and avoid being greedy by chasing highs and cutting losses. Beginners are advised to start with small amounts to practice and familiarize themselves with the characteristics of the instruments (for example, futures are more volatile than stocks), then gradually increase their positions.
Spend 10 minutes reviewing the market after trading each day, recording the signals of both success and failure, and gradually you will find your own rhythm!