The Ultimate Beginners Guide to Day Trading

4 нояб. 2023 г.

Hello everyone My name is d3ffyduck
I am today gonna post some cool and new tips For the beginners in Daytrading.
I am gonna divide things in Chapters so you'll learn it with ease

Read it till the end Hope You learn something

1. Chapter-1 Timeframe selection
   
   The choice of the best timeframe for chart analysis in day trading can vary depending on a trader's strategy, preferences, and the market being traded. Different timeframes offer varying levels of detail and may suit different trading styles.For Example
   
   
2. 1-Minute Chart: This timeframe provides very detailed information, showing price movements within one-minute intervals. I prefer Using it for precise entry and exit points In day trading
   
   
3. 5-Minute Chart: Slightly less detailed than the 1-minute chart, the 5-minute chart still offers relatively short-term insights into price movements. I use to determine my momentum for the trade i want to hold for like 1-2hrs only
   
   
4. 15-Minute Chart: This timeframe offers a broader view of the market compared to shorter intervals. I prefer it to determine my next day momentum of the market
   

1. Chapter-2 Support and resistance Using RSI
   
   I know you all knows the basics for support and resistance but today i will show you the best way. Just open your chart and use RSI Indicator and we are going to mark the overbought areas high candle and oversold area lowest candle using it for different time frames.
   
   Just a note from my side do not mark those areas again if there have already a support or resistance line in different time frame and also you can remove those level of S&R which did not hold well in different time frames
2. 1-day time frame=I have marked the regions where the RSI turned in the overbought or oversold areas. As you can see, I have not marked the support and resistance levels since they were already established from previous market overbought and oversold.
   
   
   
3. 4-hour Time frame=In this timeframe, we will only identify the levels that are above 70 and below 30 in the RSI. We'll skip the R&S that are already marked on the daily timeframe. To reiterate, please refrain from marking those levels again if we can observe that our resistance and support levels have already been established on the daily chart.
   
   
4. 1-Hour Time Frame = I've set my preferred timeframe to a maximum of 4 to 5 months. I don't want to go below this timeframe as it will create more noise. Additionally, I'll remove the support and resistance levels that didn't react well for buyers and sellers at this point to make the chart look cleaner
   
   
   

1. Chapter-3 Determining the Trend
   Here in this chapter we are going to use only 2 Things to keep everything simple:-
   
   
2. SMA+EMA 200= We are going to use simple indicator or just create yourself one indicator which plots both sma and ema with same 200 timeperiod.
   Rules are simple
   if below both ma look for short
   if above both ma look for long
   
   
   You can use it for 1hr and 15 min for day trading purpose
3. Trendlines- Trendlines are your best friend.They are the building block for your Chart pattern look for trendlines in 15 min tf for day trading purpose
   
   

1. Chapter-4 Significance of market opening closing,high,low
   This is one of the important chapter for day traders and i am going to tell you how an opening closing high and low effect the whole day trade.
   
   For Example
   1-Open your Chart
   2-Mark the opening ,closing highs and lows for previous 3-4 days
   3-Those area are going to be area of interest
   
   Tip for the beginners. Do not take any trades for the first hour From the opening of the day For example if your market opens in 9:15 am dont take trades until 10:00-10:15 cause of high volatilty Another Tip for the beginners.If you prefer to take 2 trades a day close your previous 10:00 am trade At around 11:45am -12:15 pm and start looking for another one after that. the reason because i have seen this is the time for the most probable reversal or continuation of trend for the next leg of the day

1. Chapter-5 Significance of Gaps in the market
   Gaps are one of the best way to decide what will be the market trend for the rest of the day
   There are two type of gaps in the market 1-Gap up 2- Gap down
   
   Tip for the beginners Only trade in the strong gap up or down and as i said before do not trade in the first hour of the opening
   
   Ill show you some scenarios of gap Trading with respect to opening of the day
   
2. Scenario 1st strong gap up+ Stayed above above the gap and opening for the 1 hour(9 am-10am)
   
   We can see we had a strong opening stayed above the gap up and open for atleast 1 hour so after this the trend is decided
   
   Tip for the beginners Always follow strict Risk and Reward ratio like i use 1:1.5
3. Scenario 2nd strong gap up+ stayed below the gap and opening for the 1 hour(9 am-10am)
   
   We can see we had a strong gap up and opening but price stayed below the opening for 1 hour so we took the short as dropped below previous closing/high
   
   Similarly we can use this for gap down scenarios
   

• Final tip from my side are:-
• Do meditation for 15 min before trading hours
  
• Always use stoploss
  
• Use your preferred Risk Reward ratio like 1:1.5
  
• Do not trade in opening Hour
  
• Gaps are like your friend
  
• Trends are like a path to success
  
• Do not overtrade
  
• Dont only rely on indicators there isnt any indicator which can make you rich
  
• Use only basic indicators such as Ema,Macd,Rsi and ATR
  

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