As the name suggests, day trading requires you to open buy and sell positions throughout the day. Thus, a consistent and well-thought-out day strategy is important. After all, it’s too easy to get carried away and start making important trading decisions that haven’t been properly thought out.
DotBig broker provides its clients with opportunities for profitable trading of various assets, including within one day. From the review let’s discover the features and advantages of trading with DotBig in the day trading format.
But first, let’s look at the basic conclusions regarding this type of exchange operations, the main points that should be understood in intraday trading.
7 Day Trading Basics
- Day trading involves opening and closing positions within one day.
- It provides the potential for quick returns due to rapid market changings.
- Intraday Forex players use different methods including scalping, trend following, arbitrage or range trading.
- Day traders commonly work under technical analysis. They use charts and indicators to track patterns and decide when to conclude deals. However, fundamental analysis also helps to understand the broader context behind price movements.
- At the same time, day trading is fraught with risks. The market can be unstable, which leads to rapid losses.
- Setting Stop loss and Take profit orders, as well as picking the right position size, helps to manage risks.
- Trading bots can also optimize intraday tactics. They scan market movements and conclude deals based on set terms — without constant monitoring.
Advantages of Day Trading
- Registering a larger volume of transactions in a short period opens up extra trading chances.
- It is possible to run transactions using a wide range of strategies and asset types, which provides greater flexibility.
- There is no overnight risk.
Picking the Best Platform for Intraday Trading
Here’s what to consider when choosing the best platform for your needs.:
- Supported Assets – Choose a platform that allows intraday trading of a wide range of assets, including stocks, ETFs, commodities, and cryptocurrencies. For example, the DotBig trading site offers different assets for new and seasoned traders.
- User Interface – Look for a platform with a clear, intuitive design that provides easy navigation and fast execution of transactions.
- Trading Tools – Make sure that Forex exchange offers the latest charting tools, technical indicators, and customizable features to help you implement your trading strategy.
- Commissions for transactions – If comparing the fee amount associated with each platform one can discover the most profitable trading site. Lower costs can significantly affect your intraday profits over time. DotBig exchange has established quite competitive commission rates, lower than many of its competitors.
- Customer Support – Prompt customer service is crucial. Choose a Forex exchange where you can receive responsive support through various channels.
- Mobile Access – A mobile-friendly platform allows users to trade on the go, which is essential for intraday players.
Day Trading with DotBig
Intraday trading is a type of short-term buy-sell asset activity. Adherents of intraday trading strategies can open up to several dozen trades per day. The effectiveness of this type depends on the investor’s experience, knowledge of technical analysis, as well as other factors. DotBig investment platform provides clients with a wide range of tools and services for conducting profitable day trading.
Top intraday trends to watch
When choosing a working method for intraday Forex operations, evaluate your level of experience, profit expectations, and risk tolerance. Thus, seasoned investors recommend testing strategies on a demo account. This will allow newbies to check the effectiveness of the chosen trading style and, if necessary, adjust the action plan without losing real money.
Scalping
The meaning of the scalping method is based on earning profits from small price changes. Thus, traders using this strategy usually hold positions for several seconds to several minutes. In this case, one transaction does not bring high profits. However, experienced scalpers earn stable income due to a large number of beneficial deals.
Scalpers rely mainly on technical analysis to make correct decisions. They use charts, indicators, and patterns to determine short-term rate movements. Among technical indicators, scalpers usually pick moving averages, Bollinger Bands, and the Relative Strength Index (RSI).
When scalping, market participants open a large number of short deals per day, which can lead to high costs, including spreads and other commissions. This spending can accumulate and reduce profits, so it is important to trade with a broker offering favorable terms. Besides, scalpers have to constantly monitor the financial market case in order to benefit from the slightest fluctuations in asset prices.
Breakthroughs
Breakout trading is a well-known method used by Forex traders to profit from significant price movements when an asset breaks through a predetermined support or resistance point. This strategy is especially effective in volatile markets and can bring high profits with the right investment decisions.
Successful breakout deals are based on accurate identification of key levels:
- Support levels are price points where an asset usually finds the interest of buyers, preventing it from falling further.
- Resistance levels are the points where there is interest in selling, preventing further rate growth.
Breakout Forex dealers usually look for specific price patterns that precede breakouts. The most well-known patterns are triangles (ascending, descending, and symmetrical), rectangles, and flags. These models help users anticipate potential breakouts and prepare for entry.
According to DotBig reviews, false breakouts may come when the rate goes beyond the support or resistance level, but cannot hold the movement, which leads to a reversal. When using breakout methods, impulsive decisions mainly lead to losses.
Reversal trading
This type focuses on determining when the current trend may change direction, allowing Forex players to enter the market just in time for the start of a new trend. A reversal can occur at any time interval and applies to both bull and bear markets. The key objective is to enter a position at an early stage of a new trend in order to maximize potential profits while reducing risk.
The first step in reversal trading is to clarify the current trend. Understanding its strength and duration helps predict potential reversal points. Specific price formations – reversal patterns – allow traders to see a possible change in the trend direction. Common reversal patterns include “head and shoulders,” “double tops and bottoms,” and “triple tops and bottoms.”
DotBig Forex broker experts warn that identifying real reversals requires a deep understanding of technical analysis and the ability to interpret numerous indicators and patterns. Thus, a given strategy can be pretty challenging for novice traders.