Day Trading Truth You Need to Know
Day Trading Truth You Need to Know
Tools Featured In This Post 1 – Get Started With Binance (Outside USA): here 2 – Get With Binance (Inside USA): here 3 – Get a VPN : here 4 – Access Trading View: here 5 – “This Book Will Make You Money” Download For Free Here
Introduction To Day Trading Truth
If you are here reading this post, it’s probably because you need to make extra cash…
It’s possible that you have heard about the incredible profits possible with day trading and as you investigate getting started with day trading, you found my post!
Well I hope I can help you make that extra money you need.
You Need To Know Day Trading Truth
What is really awesome about day trading, is that once you learn the skills needed, you will be able to trade pretty much anything from rice and sugar to stocks and shares and also forex and crypto.
But should you include crypto day trading in your investment goals?
Only you can make that decision, but the point of this article is to give you the basic information needed for you to consider it.
It is not possible to cover every point and if after reading this you need more information, feel free to ask me here <===
Crypto day traders can earn their income by buying crypto assets when prices are low and then selling those assets at an increased rate before the market closes.
As you read, you will first get an understanding of what day trading is. Then you will find 4 different day trading styles.
You will then discover the platforms that I use and by the time you have finished, you probably will be ready to make a decision.
So if you are ready, let’s go into the amazing world of day trading.
What is Day Trading?
As a day trader, you will make your profits on a daily basis.
The concept is buy low and then sell high within a single day.
This morning the price of bitcoin was $26,844 and right now it is $27,378.
If you bought this morning and sold now, you would have increased your wealth by 1.9%.
That might not sound a lot, but if you were to do that every day for 1 year, with a $100 principle amount, you could create about $98,118…
Now do I have your attention?
If you go to this interest calculator and play around with some figures, you will get very excited!
At this point, I must remind you that there is no way I can guarantee you would get a 1.9% increase every day.
Also I am not a financial advisor, I am just sharing my thoughts and furthermore, you might also be shocked to know that most day traders lose all their principle and profits.
How Do Day Traders Make Money?
Becoming a successful day trader means having an extensive understanding of the market.
As a trader you will need an understanding of technical analysis and chart skills. I recommend ‘paper trading’ on a demo account over a long period of time.
Before live trading, make a profit paper trading to get the experience needed. Ideally 3 to 6 months of paper trading in profit would be a great way to start.
Paper trading is a simulated trade. You do not risk real money and it allows you to master the skills you need before going to a live trade.
One of the hardest skills of all skills to master is removing emotion from your trading.
There will be days when you get excited as the price suddenly jumps up and there will be days when you feel you are in a nightmare as the price plunges!
These mood swings, cause panic and you trade at the wrong time, only to curse yourself later.
So Rule Number 1: Remove emotion from your trading.
Rule Number 2: Trade ONLY on proven strategies.
Rule Number 3: Only buy or sell when the trading indicators tell you to do so.
If you are new to day trading, it could be less overwhelming for you to trade one 1 asset.
For example, you may want to chose BTC/USDT as a trading asset. Bitcoin (BTC) has out performed all other crypto assets, so why bother looking at anything else? Right now the most money to be made is in bitcoin.
The skill to trading, is knowing when to get in and out of a trade.
Day Trading Strategies
1- Scalping
A popular approach for day traders is to use the scalping trading technique. Scalping success relies upon small changes in prices that happen within a short time.
Scalping is often done on short time frames from 5 second to 15 minutes time frames are very common.
Indicators on a program such as TradingView, will help your scalping strategy success. One of the options scalpers use is using Leverage.
Warning: Do not leverage trade without experience. You can blow your account in one trade.
Scalping is best used by proficient individuals and I certainly would not recommend it to you if you are just beginning. These short time frames create fast volatility and you will probably go a bit nuts.
You will almost certainly have to sit looking at the screen all day and the frenzy could make you exhausted. Best to slow the trading down.
2 – Range Trading
The price of bitcoin is bouncing up and down between $25,000 and $30,000 as I am writing. It’s been doing it for a few weeks and getting kinda boring.
However if you were a range trader, you may very well buy bitcoin at $25,000 and then sell it when it gets close to $30,000.
If you had done that over the last few weeks, you would have probably created a nice little profit.
Currently around $29000 to $30,000 is considered resistance and around the $25,000 price is considered support.
A sell strategy triggers reaching the resistance level and a buy strategy triggers when reaching a support level.
The range trading strategy assumes that a given price channel is valid until broken.
This means that the support level will likely push the price up and the resistance level will likely push the price down.
One of the biggest risks to range trading is if the price continues past its range.
So if you have a sell signal at $29,000 and the price continues upward to say $35,000, you are missing out on profits.
Conversely the same happens if you have a buy signal at $25,000 and the price breaks support and falls to $15,000, then you are again missing out on extra profits.
This is called “breaking out.”
The probability of breaking out from a support or resistance level goes up the more price hits it.
3 – High-Frequency Trading (HFT)
High-frequency trading is a prevalent algorithmic trading strategy.
HFT relies on high speed trading over very short periods of time.
I’m talking about fractions of a second.
This kind of trading is often carried out by specialized software or bots. HFT may appear alluring as a day trading strategy but, it is technical and demanding.
I have never actually met anyone who is profitable using HFT bots, so if someone offers you one, you may very well want to run in the opposite direction.
It is often sold to inexperienced traders who think the bot will do everything for them, but it is absolutely not a strategy for the beginner.
So let’s not discuss it anymore!
4 – Swing Trading
I am a swing trader using daily candles. Swing trading on daily candles is actually not really day trading in my opinion, as a trade may take a few days to complete.
I like swing trading because I do not have to spend all day looking at a computer screen as I trade.
This means that I might buy (open a trade) and not sell (close the trade) for a week or more.
Swing trading is less stressful and in my experience more profitable than the other 3 strategies already discussed.
As a beginner, you may want to consider day trading on daily or even weekly candles.
As an example, if you had followed the indicators I use (on the weekly candles) and started with $100, you would have the following results:
27 April 2020 Bought @ $7,601 – $100
31st Aug 2020 Sold @ $11,721 – $154
19th October 2020 Bought @ $11,347 – $154
10th May 2021 Sold @ $58,162 – $789
26 July 2021 bought @ $35,515 – $789
29th Nov 2021 Sold @ $57,165 – $1269
9th Jan 2023 Bought @ $17,271 – $1269
There is no sell signal yet,, but if we sell today
23 May 2023 Sold @ $27,428 – $2015
So in just 4 complete trades, your $100 would become $2015!
There isn’t a bank in the world that will give you those returns!
In order to inspire you even more, earnings of $2015 over 3 years might not seem a lot, but can you imagine what would happen if you had a 10 year or 20 year plan!
The figures, could be mind boggling.
But just to bring you back down to ground and at the risk of repeating myself, most traders lose all their money, so tread very carefully.
How To Get Started With Day Trading Crypto
Crypto day trading can appear like a stairway to financial heaven, but should you give it a go? If you want to try it out, as said earlier, I recommend doing paper trading first.
This is where you trade with real prices, but on a demo account. You risk no money.
I would not recommend live trading until you have 3 to 6 months of successful paper trading.
So now you have decided you’d like to try out day trading cryptocurrency, where should you start?
As the world’s largest trading platform, Binance is wonderful.
Sadly it is not available in the USA due to changing laws and regulations. However due to a partnership with BAM Trading Services citizens of the USA can go directly to Binance.us
This is exclusive for US citizens.
If you are serious about crypto trading and you live in The USA, you might want to move away!
Binance allows you to paper trade on their Futures Testnet.
If you need more information about this, feel free to ask me here.
Why You Need A VPN To Use Binance In The US
Warning: If you are traveling to the US and open your Binance.com account, you could face restrictions.
Binance.com blocks anyone in the US from creating an account and trading on the exchange.
How does it know?
It uses your IP address to detect your location and restrict access.
Being blocked out of the platform is a huge problem if you’re traveling to the US. You won’t have access to the exchange to control your trades throughout your stay.
You may even have to do KYC (Know Your Customer) again to get access.
Using a VPN gets around this as it hides your real IP address and makes it appear you are outside of the USA.
So get a secure VPN here <====
Should You Start Day Trading For A Living?
Day trading can be a profitable strategy. I recommend that you treat day trading like a job rather than a hobby or a sideline.
Day trading of any kind does come with risk so never trade with money you cannot afford to lose.
I do not recommend trading with money from a credit card or a loan. If you make a loss you might no be able to repay.
I would also recommend that you do not use all the account balance in a single trade.
Much better to use a small percentage. If the trade goes the wrong way, you still have a balance to trade again.
If a trade goes the opposite way, then I prefer to wait for the trade to settle. Example: you buy low and the price goes lower or you buy high and the price goes higher.
I almost never sell if the trade goes the wrong way.
If you are of nervous disposition, then day trading might not be for you. If you can be calm under duress, then it could be a profitable system for you.
I like swing trading, because I can grow my wealth portfolio without selling a product or having any customers. I can trade anywhere I want, at any time of the day or night. All I need is my laptop and an internet connection.
I have no boss, no office and other than small trading fees, I have no operating costs.
Sounds ideal to me.
So If You Are Ready To Get Started
I can share what I do with you.
I do not feel that it would be correct for me to share my strategy in public. It might be taken out of context or used incorrectly.
So I am currently writing my strategy and in a few days it will be ready.
If you would like to see it, I will send it to you 100% for free, no-strings attached, not selling anything to you.
Simply click on this link and send me a message asking for my strategy and I will send it to you.
Closing Thoughts And A Recap
Day trading can be an amazing journey, but It is not for everyone. You do need to learn strategies and study trading principles and also have time each to check how your trades are performing.
I would recommend profitable paper trading for 3 to 6 months before live trading.
Never invest any money you can’t afford to lose.
Don’t trade with emotion, follow rules.
Understand technical analysis and charting.
The goal is to buy low and sell high…
And sell high and buy low…
Are you ready to get started, or do you have any questions?
Let me know at BitcoinTrainingCamp, and we can get you setup and in the right direction.
You Need To Know The Day Trading Truth.
***Disclaimer – For You Need To Know Day Trading Truth***
Just a quick little message from me a small disclaimer I am NOT a financial adviser I am NOT giving you financial advice in any way.
I’m sharing with you some information for educational purposes.
I’m sharing with you some websites that I personally use and I’ve been using for years or so and I have been paid by all of them and as I made this video they are presently operational and presently paying me.
Now I can’t guarantee they always will, so when you use them if you use them, please take full responsibility for whatever you do.
I am not connected in any way to any of these websites that I cannot offer you support in any way for any of these websites.
If you do any kind of investing, please do not use, in my opinion, you should not use any money that you cannot afford to lose, however, I’m going to show you websites where you don’t need to invest any money at all.
I’ve never invested any money in any of these websites what-so-ever and they have made me money.
So if that’s all cool with you please remember I’m not a financial adviser, please make your own financial decisions and if that’s all good then let’s get started and let’s show you how to make some money.
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This Post: Day Trading Truth You Need to Know was written by Tim Bennett, exclusively for Bitcoin Training Camp © 2023