How To Day Trade Stocks – Learning Day Trading


Day trading is not a strategy like swing trading. Day trading is a reference to holding a trade a minute to a few hours at most. That’s it. I think a lot of people who want to learn how to day trade stocks have the wrong idea about what day trading is.

There are hundreds of different strategies within the larger umbrella of day trading.

How To Day Trade Stocks For Profit

I have read many books on day trading. I have learned little from them. You are probably not going to learn how to day trade successfully from a how to day trade stocks for profit pdf. I have learned very little from reading them. You need street cred when it comes to learning how to day trade successfully. You need to learn from someone who actually knows how to day trade from home because they actually do it for a living. Not book smarts but real live day trading experience you can use to make money.

Late day drops or fades happen often on the major indices.

This is the ultimate day trading for dummies strategy. It it as simple as noting if the S&P 500 is in the habit of selling off or moving higher into the last hour of trading. If you noticing the market is selling off into the close, you execute a late day fade strategy where you establish the day’s key support level. If that support level is broke going into the last hour of trading, you short the market and cover as soon as you hit a profit. You can read more day trading the late day fade here.

Day Trading Fading Strategy

Going opposite the market is called fading. Selling into an upward move or buying into a downward move is called fading. It is a very risky day trading strategy but one that can be very financially rewarding. The greater the risk, the greater the reward if you time it right. It requires very little analysis of any kind.

When it comes to the late day fade, the idea is not to be the first day trader shorting into the upward move but rather establish if the market has been selling off at the end of the day over the last several days, and to wait until you see other day traders fading the market into the last hour of trading and so you just run with the shorts. Check out the anatomy of a late day fade strategy below (click on the image to enlarge).

The RSI turned down first, as it often does, and was a great leading indicator for the late day fade on SPY. Suddenly volume exploded into the downward move as day traders rushed in to fade SPY in the last hour of trading. The market had been closing down in the last hour of trading for the previous two trading days. A key support level was broke, and then another. Finally, you can see the day traders that faded SPY cover their short positions in the last couple of minutes of trading which caused a bullish hammer to form.

Frequently Asked Questions about Day Trading

What day trading strategy works?

There are many day trading strategies that work but they all need to have liquidity and volatility. You should also be using candlestick charts.

I posted the best day trading strategies in the article above; however, there are many more. It’s helpful to see what day trading strategy is working for other traders. Below are several videos of day trading strategies that I did not cover in the article above.

StockMarketStrategy posted the video below called Day Trading Strategy MACD.

StockMarketStrategy posted the video below called Day Trading Strategy Stochastic.

Markus Heitkoetter posted the video below called Day Trading Tips – The Best Indicators For Day Trading.

What does day trading mean?

Day trading means buying and selling a stock within the same day, usually within minutes to hours, in an attempt to profit off of intra-day trends and intra-day swings.

HowToDayTradeOnline posted the video below called What Is A Day Trader? Beginner Video on Day Trading.

What are day trading strategies?

The most common day trading strategies are pivots, fading, momentum, and scalping. Each of these common day trading strategies are explained in the article above and are talked about in the videos below.

Accendotraders posted the video below called Accendo Traders – How to Use Pivot Points for Day Trading.

StockMarketStrategy posted the video below called Day Trading Long Or Short.

Market Geeks posted the video below on day trading momentum called Best Day Trading Strategies.

TheMoneyManiacTV posted the video below called Day Trading – Scalping Strategy.

What is day trading buying power?

Day trading buying power is the cash requirements your broker is required to maintain by SEC Rule 2520 which was established in 2001. This rule allows for buying power up to four times margin maintenance in a daytrader’s margin account. The rule also requires a pattern day trader to maintain a minimum account equity of $25,000.

Optionsizzle posted the controversial video below called Pattern Day Trader Rules Un-American.

What is a pattern day trading account?

A pattern day trading account is a status of trading account created in 2001 by SEC Rule 2520 that requires day traders to have a minimum of $25,000 in their accounts.

If you make four or more day trades in a rolling five-trading-day period, you will be considered a pattern day trader under these rules.

Optionsizzle posted the controversial video below called Pattern Day Trader Rules Un-American.

What is day trading margin?

As a pattern day trader, you’ll be granted day trading purchasing power up to four times your NYSE margin excess.

What is fading a stock?

Fading is a contrarian strategy used to trade against the trend. It can be used for both day trading and swing trading. An example of fading includes buying on a drop in price and selling when the price rallies. It’s a risky strategy, but one which offers the potential for significant short-term gains.

NetPicks Trading posted the video below called Fading the Move.

PATsTrading posted the video below called Price Action Trade Example – Fading A Strong Move At Support.

What is momentum stock trading?

Momentum stock trading is based on the idea that the impetus gained by a moving object will continue in that direction for a period of time. Momentum traders attempt to capture a small portion of that move for profits.

UKspreadbetting posted the video below called The Momentum Indicator.

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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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Latest posts by Lance Jepsen

Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.