Day trading

What is it:

Day trading is a trading strategy that involves entering and exiting positions within one day. The goal of day traders is to use intraday trading strategies to get profit from changes in the price of the cryptocurrency.

Type:

Active crypto trading strategy.

Timing:

This strategy is used within single-day-term trading.

Idea:

The idea behind crypto day trading is to look for trading opportunities that offer you the potential to make a quick profit.
Day traders seek to profit from market volatility. Thus, volume and liquidity are critical to day trading. Day traders need good liquidity to trade quickly and efficiently. This is especially true for the exit from the position.

How to:

  • Pick up coins with high volatility and high liquidity (Large slippage on just one trade can have devastating consequences for the day trader’s trading account).
  • Apply the cash flow index indicator on a 5-minute chart.
  • Wait for the cash flow index to reach 100.
  • Buy if MFI = 100 and if the next candle is bullish.
  • Hide your protective stop loss below the daily low. Take profit within the first 60 minutes after opening a trade.

When to use:

Typically, day traders use technical analysis (TA) when trading. They use indicators such as volume, price action, chart patterns, and technical indicators to determine entry and exit points. As with any trading strategy, risk management is essential for day trading to be successful.
Trading on the news is one of the useful option for traders which means looking for assets with high trading volume, triggered by announcements or news, and taking advantage of a temporary spike in trading activity.

Conclusion:

If you are interested in learning how to trade cryptocurrency by day, be sure to arm yourself with enough information before diving into the market.
Cryptocurrency day trading can be a great way to grow your crypto portfolio, and it is a very lucrative alternative to a holding mentality that harms the crypto community.
Making day trading in cryptocurrency is much easier due to the high volatility of the cryptocurrency market. High volatility is very good for day trading, so you have the right conditions for success.

All information on our website is purely entertainment and educational in nature. We do not give investment advice and do not guarantee anything, we are not responsible for the operation of the services, links to which are on the site. All recommendations are based on personal experience. The decision to use them is at your own peril and risk.

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Source: CurrencyRate

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