DayTrading refers to the set of rules that determine investment choices with a short-term perspective, understood as a period ranging from 1 day to a few weeks. In this period of time, the trader who uses the logic of DayTrading evaluates the entries and exits from the market.

The intraday Trader, on the other hand, has a much faster work setting, that is, it evaluates entries and exits that tend to be completed within a few hours, often forced closure is sought even at the end of the day. The intraday trader needs a good precision of analysis and strict rules to respect.

There is a third category of investor which is known by the term “drawer” and which indicates the willingness to remain in a market for a long period (months).

Which trading method to choose?

Although at first glance they may seem two opposite ways of approaching the market, instead these 2 methods are made to live together. In fact, it is logical to expect that the trader will be able to develop a part of the trades in intraday and a part for the medium term.

For example, if the GOLD touches a level of support considered important, you can put into practice both a long to close in intraday and a long to hold for the medium term (in this case we are talking about running).

DayTrading with the We-Spread indicator

The We-Spread indicator (you can buy it from here: https://www.we-trading.eu/prodotto/we-spread/) is used to set medium-term entry logics taking into account positive or negative correlations between 2 tools. The goal is to invest in a balance of long / short positions and take advantage of the phases of volatility that can open temporal profit windows. It can be used for example to analyze and invest in similar instruments such as:

  • DAX vs EuroStoxx
  • DAX vs Sp500
  • EURUSD vs AUDUSD
  • GOLD vs SILVER
  • SP500 vs VIX
  • shares in the same sector such as IntesaSanPaolo vs Unicredit
  • WTI vs Brent oil
  • and so on…
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    DayTrading Tips

    As a first step, it is always good to remember the time horizon in which you work and the need to obtain a favorable trend in order to close in profit. Advice The following steps:

    • Analyze the trend in weekly and daily
    • Find a daily support or resistance on which to enter (to this end, I invite you to view the We-Trend Indicator [see here])
    • Always set a stop loss and a take equal to at least twice the risk (risk reward 1: 2)
    • Tips for intraday trading
    • In this case it is important to find a setup that can develop and finish within the day.

    I recommend the following steps:

    • Analyze the Daily trendfind intraday support and resistance on H1 charts as well
    • Move to M15 to evaluate inputs on these levels (the Demand & Supply oscillator in the Ichimoku Kumo Collection package is very useful)
    • also evaluate possible elements of price action
    • fix stop loss and take profit with RR of 1: 3
    • move the position in BreakEven as soon as possible

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