Day Trading Improvement Guide! (From Beginners to Advanced)
The sharp-tongued sister of Stock FX here♪ (▶Twitter)
The person behind the sister worked as a fund manager (I'm a former institutional investor), and now I live independently as a stock investor♪
Read the links to my past market predictions here♪ (◀I've been almost 100% accurate for over 20 consecutive companies♪)
Today, I will explain the flow of day trading from the day before to the day of♪
I've also included links to books I've written along the way♪
If you want to dig deeper, try reading one that matches the skills you want to improve♪
First, some important mindset for day trading
Day trading is an investment method where "controlling your own emotions is more important" than swing or long-term investing♪
In swing or long-term investing, you have days to think before pressing the sell button, but in constantly moving day trading, you only have a few seconds to at most a few minutes to think.
You should thoroughly memorize the mindset below as if it were "engraved in your genes"!
If you can't make the decisions below by reflex, you won't survive♪
◯ Only follow the early to middle stages of an uptrend. Don't chase the second half!
If you enter in the middle to late stages of an uptrend, you'll easily get caught buying at the peak, and it will be a disaster if you miss your profit-taking or stop-loss points♪
I've said this until I'm blue in the face in various articles, but that's how many people fail to follow this.
The reason is that when any stock enters the middle to late stages of an uptrend, there are often days where the stock price rises by 7% to 20% in just one day (= intense temptation).
※※High volatility = a large daily price movement range. is what we call it♪
If you give in to the size of the volatility (the desire to earn more) and enter here, as I explained in detail in How to Master Scalping, it might be fine for the first few months while things are going well, but gradually you will develop a mental habit of "only chasing intense price movements and stopping looking for 'stocks that will rise'", which will lead to a major loss in the near future, and in the worst case, margin calls or bankruptcy♪ If you want to chase profits with this high volatility, buy with 'medium-term to long-term investment' using money you can afford to lose♪
In the first place, as you get better at day trading, when you can ride the waves well, even on days when the closing price only rises by about 1%, you will be able to catch the market's ups and downs several times and stably make a profit of 2-4% every day♪
This means that volatility where things move 7-20% in a day is 'not necessary from the start'♪
In the daily preparation I will explain in the next chapter, I line up 1-minute charts (5-minute charts are also fine for some people) of 10 to 30 stocks I've narrowed down every day on multiple monitors, and I
repeat 'buying stocks that have started an uptrend on the 1-minute chart and taking profits when the rise stops'♪
It's safest to follow the same investment style as me as much as possible♪
In stocks, the higher the price goes, the higher the risk becomes.
Rather than holding on and increasing risk to aim for a 30% or more gain, 'finding 10 to 30 stocks in the early to middle stages of an uptrend every day, and earning 1 to 5% every day' will earn you more in total over your life. This is the biggest advantage of day trading♪
Preparation the day before: How to choose stocks to enter
There are two types of day traders:
(A) People who specialize in 1 to 5 stocks and keep watching them for years, and
(B) People who change stocks every day.
The advantage of (A) is that if you keep watching those stocks for years and understand their 'unique price movement habits,' it becomes easier to increase your win rate♪
The advantage of (B) is that, as I wrote in 'Collection of Stock Investment Advantages,' since there are about 3,800 types of stocks, if you memorize them like Pokemon (900 types) or Yu-Gi-Oh (10,000 types) characters,
you will have an endless supply of your favorite chart patterns to find almost every day♪ (Reference article ▶ '
Let's memorize theme stocks like Pokemon♪')
I am a (B) type day trader♪
Also,
if you continue the life of watching various stocks every day as a (B) type for many years, you will eventually be able to grasp the habits of price movements with high precision for dozens of stocks, just like a (A) type person♪
The ideal is to master it as a (B) type! That's it♪
Conversely, there are many people who naturally become (B) types while gradually increasing the number of stocks as an (A) typeso either way, “the goal you are aiming for is the same”that's what it means♪
Day trading on the day
As I wrote in the mindset section, I (the person behind this) prepare the day before by lining up 1-minute charts of 10 to 30 stocks narrowed down daily on multiple monitors, and
I repeat 'buying stocks that have started an upward trend on the 1-minute chart and taking profits when the rise stops'♪
I don't really look at 5-minute charts. Since the SBI Securities app and stock websites 'update the "Day Trading Rapid Rise Ranking" in real-time by aggregating price movements from the past 5 minutes', if you judge entries based on 5-minute charts, there is a possibility that a large number of rivals will enter, which significantly increases the risk of buying at a high price♪
During day trading, while being conscious of support lines, resistance lines, trading volume, etc., if I find market manipulation (such as spoofing), I deal with it... and so on, I trade with a feeling close to a 'fighting game'♪
I continue to write about various detailed techniques in various articles on the blog♪
◯ How to spot market manipulation [Spoofing edition]
◯ How to read 'margin trading balance' [Explained from beginner to pro level]
are available for free from beginner to advanced levels♪
The paid sections can also be read for the price of 1 or 2 bowls of ramen, so it's a good deal♪ (Sorry for being good at business♪)
I will continue to release new explanations, so if you are interested, please follow me on Twitteror note and wait patiently♪
Asset management, position sizing, and position management
◯ Many people don't do much position management, but in day trading,
“position management” is extremely important!To show how important position management is, there are even methods like the one I wrote in '
How to create a winning system trade ', where 'you can make a 100% profit whether the stock price goes up or down'♪ A very small number of professionals have noticed and are doing this♪
◯ Don't just focus on day trading; diversify your assets by also doing swing to long-term investments!
As I wrote in detail in ' How to make large profits ', investments like day trading and swing trading that 'rely on "stock price fluctuations" rather than corporate growth' should be done within the 'range of money you can afford to lose' ♪
No matter how skilled a person is (even someone like me with a win rate of over 90%), 'stock price fluctuations' as long as you are caught up in them, there is always a risk. How to make large profits like in 'the range of money you can safely earn' it is most ideal to invest within♪
Blog Policy
◯ Blog aspirations! [Becoming a media that surpasses publishers!]
◯ Self-introduction and dreams [The sharp-tongued younger sister of stocks and FX]
Day trading explanation
◯ [Stocks/FX] 4 recommended articles on day trading
Swing trading to long-term investment explanation
<For beginners to advanced users>
◯ [Stock investment] How to make large profits [From beginners to advanced users]
<For those who don't have time to study stocks>
◯ How to create a winning system trade [Large profits even for beginners]
<For Professionals>
○ Collection of my favorite note articles [For Professionals]
○ [Stocks/FX] The essence of winning! 'Money Management & Position Management'
<For those who want to become institutional investors or make investing their profession>
○ The essence of those who achieve great success in stocks and FX [The answer to everything]
<For those who want to copy my (the author's) exact trading style>
○ [For Professionals] My exact swing trading method [Over 90% win rate]
Let's keep doing our best together♪
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※ Notes
○ Explanations are for reference only. (Sometimes I might be wrong)
Please make final decisions at your own risk.
○ If you have any questions, send them to me on Twitter♪
If your question is selected, it might lead to an addendum or a new article. Sorry if it doesn't get selected♪
○ Please read here for detailed notes♪