How Day Traders Do 200 Trades a Day and Strategies They Use

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How do day traders place so many trades? Which products do they trade? How much do they bet? How do they know when to buy and sell? What does their trading set-up look like? Which make money? How much do they make? How many trades win? How many lose?

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How Day Traders Do 200 Trades a Day and Strategies They Use

  1. 1. How Day Traders Do 200 Trades A Day And a strategy they use
  2. 2. You’re Average Day Trader
  3. 3. …Profits… 200 trades x $10 = $2,000 a day
  4. 4. …Because Buy & Hold May Give Zero…
  5. 5. …More Control…
  6. 6. …small trade sizes…$1/£1/Eur1…small risk
  7. 7. …lots of experience gained in short time…
  8. 8. Who? Students Full Time Mothers Full Time Plumbers Professional Traders School Teachers Retirees My Talk At Bloomberg
  9. 9. What Do Winning Day Traders Do Right? Trade 5-6 products Trade about 2-3 hours a day Long and Short Shorts make profits quicker Dow, GBPUSD, FTSE Time frame – 1 minute and 5 minute charts 1 or 2 strategies max 80-90% winning trades 52% trades held under 1 hour 24% trades held 1-6 hours Hold under 10% of positions overnight max
  10. 10. What Do Winning Day Traders Do Right? Have a max loss of around 5 x average winning trade Winners take lots of small wins & some large losses Account size $7,000-$20,000 = 80% of day traders Lots of small bets compared to account size
  11. 11. Cleverest Thing Day Traders Do… • Bet small…0.1% of their account per point on index/currency • Eg $20,000 account. Bet $20 per point move in Dow or GBP/USD
  12. 12. Why Small Trade Sizes They would have open 3-5 positions at any one time in different products If lose, lose small Feared losses
  13. 13. Which Products? Dow FTSE Gold GBP/USDEUR/USD GBP/EUR Apple
  14. 14. Which Time Frame? • 1 minute and 5 minute charts
  15. 15. How Did They Set Up Their Screens?
  16. 16. Strategy: Scalping Up to 200 trades in a day About 5 trades per product in an hour 80% of trades last 5 minutes to 2 hours 80% win
  17. 17. Strategy: Scalping Win target: 3-5 pips Add to winners if price moving sharply (watch chart) Add to losers up to maximum 3 additional positions Bet size: 0.1% of account size per point ($20k account = $20 per point bet) Stop loss if 3 x winning target (ie 3 x 5 pips lost ie 15 pips) Trade in direction of trend, or of a pullback – see next Popular products: FTSE, Dow, GBP/USD/JPY/EUR, Gold
  18. 18. Why – What’s The Theory? The markets moves short sharp amounts So capture many small profits with small moves When it moves fast in your favour, quickly add to your position As soon as it slows, get out If you have a loss, add to it, to reduce your average entry price and the market will come back
  19. 19. Profit Maths 8 x 5 pips = 40 pip profit 2 x 15 pips = 30 pip loss Net profit 10 pips
  20. 20. Profit Maths $20 bet per pip is $200 profit per 10 trades 2 trades per hour per product 5 products = 10 trades per hour 100 trades per day = $2,000
  21. 21. Profit Maths - Caution • Assume 10% of that whilst you learn and make errors • Increase profits: larger account and bet size; more products observed
  22. 22. When Do You Know To Enter The Trade? Method 1: Trend
  23. 23. …the trend…
  24. 24. Method 2: The Pullback • Draw a line to represent the average price of the past 9-12 hours • Ie a line above which as much time the market was as below it • Ie a line around which the market traded • Expect pullbacks to the line when price goes above it too far and below it too far
  25. 25. How Do You Know The Trend? Look at the prices Look at the chart
  26. 26. Method 3: Breakout
  27. 27. Remember Shorting…
  28. 28. Risks You don’t exit your losses You don’t trade with the trend, breakout or with a pull back
  29. 29. How Do You Do It? Open An Account With A Big Hairy Friendly Broker
  30. 30. …A Broker That Has Won Awards
  31. 31. Get on which gives you money & is quick to open…
  32. 32. ….A Broker That You’ve Been Recommended
  33. 33. Our Choice… www.investingbetter.com/bwin
  34. 34. How To Get £5,000
  35. 35. www.investingbetter.com/bwin
  36. 36. Open via our link to get a free copy of Investingbetter.com/bwin
  37. 37. Open via our link to get a free copy of Investingbetter.com/bwin
  38. 38. Step 1: Open the Account – 5 mins • www.investingbetter.com/bwin
  39. 39. Step 2: Familiarise Yourself – 2 minutes
  40. 40. Step 2: Familiarise Yourself With How To Place a Trade – 2 minutes What we are trading eg Dow. Buy and Sell Buttons and the Buy and Sell Prices. If buy and then sell – make 1 point loss.
  41. 41. Step 2: Familiarise Yourself With How To Place a Trade – 2 minutes 1GBP profit/loss per point change from buy price to sell price
  42. 42. Step 2: Familiarise Yourself With How To Place a Trade – 2 minutes Optional: At what price you want to sell at a loss ie price below your buy price
  43. 43. Step 2: Familiarise Yourself With How To Place a Trade – 2 minutes Deposit needed to bet 1gbp per point on this product
  44. 44. Safety First: Investingbetter.com/bwin
  45. 45. What if Day Trading Is Not For You? • Can’t spare 1-2 hours daily
  46. 46. What if Day Trading Is Not For You? • Want expert advice not doing it yourself
  47. 47. What if Day Trading Is Not For You? But don’t want to pay big broker fees to manage your money
  48. 48. www.investingbetter.com
  49. 49. Entry Exit Profit: 45 pips x 30gbp/pip = 1,350gbp EUR/USD
  50. 50. Entry Exit Profit: 50pips x 30gbp/pip = 1,500gbp GBP/USD
  51. 51. Entry Exit Profit: 1,600USc x 3gbp/USc = 4,800gbp Gold
  52. 52. Entry Exit Profit: 45pips x 30gbp/pip = 1,350gbp EUR/USD
  53. 53. Entry Exit Profit: 1,100USc x 3gbp/USc = 3,300gbp Gold
  54. 54. Testimonials
  55. 55. Entry Exit Profit: 90points x 30gbp/point = 2,700gbp over less than 3 days! FTSE 100
  56. 56. Entry Exit Profit: 120pips x 30gbp/pip = 3,600gbp in 2 days! EUR/USD
  57. 57. www.investingbetter.com

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