Day Trading Strategies in Nigeria 2022: 5 secret Game Plans
Day trading strategies have become a vital trading plan for both beginners and intermediates in the financial market.
Here, in Nigeria, the financial market has been embraced by a large number of individuals looking to profit and make ends meet.
The daily routine of handling white-collar jobs and running from pillar to post doing a monthly pay cut has hindered many fortunes from seeing the light of the day.
Options day trading strategies, crypto day trading strategies, and forex day trading strategies are all one skill in one unique package.
Some refer to day trading as intraday trading strategies while some simply refer to it as day trading strategies. Both terms mean the same technique or principle of trading.
To be a successful day trader in Nigeria, you must understand what day trading strategy is and if you’re likely to be a day trader or a swing trader.
Our previous post talked extensively about swing trading and you’re also advised to read and master the strategy before making a decision on what works best for you.
What is Day Trading Strategies?
Day trading strategies simply refer to the methodology employed by a trader in trading (buying or selling assets in the financial market) within a single day (intraday).
This post will expose you to what it takes to be a day trader, the pros of day trading, and also some cons of day trading.
The disciplined trader stays in the market all day looking to buy or sell one or more assets.
Day traders have proper risk management implementation, they don’t risk more than what is needed for the day.
Thus, this makes their trading time conscious, they don’t stay too long in the market but rather set and achieve aim quickly and they exit losing trades at the earliest opportunity available.
Day trading strategies for beginners can be achieved with much patience, an in-depth understanding of day trading, and discipline.
You can join intraday trading tips for beginners’ classes or a trading academy to learn fast.
A singular trading day could generate huge profits or losses. Therefore, a trader needs to decide on what works best for him and his daily schedule.
Day traders are short-term traders looking to maximize profit and minimize losses on daily basis.
A day trader focuses more on activities that occur in the financial market for the day. The 1-day candlestick is more important to the day trader than the monthly candlestick.
This 1-day candlestick makes the day trader focus more on the highs or lows for the day.
Risks of Day Trading Strategies
Day traders make higher risks because they are short-term goal-oriented. The shorter the time of trading the higher the risk.
Also, day traders must have in-depth knowledge of the market structure. They need to understand fully well what direction the market price is going and the reasons.
The risk-reward ratio of day traders is not as enormous as a long-term trader.
Lastly, day traders must have sufficient money in their trading account.
The Secret Plans to Day Trading Strategies
These secret trading plans are what makes successful day trader.
For a successful day trading, one or more of these secretive plans can be employed for day trading and I can guarantee you maximum profit in your day trading journey.
You must first learn that caution is needed to be a successful day trader because of the greater risks involved in day trading.
Here, are the 5 secretive day trading strategies:
Momentum Trading Strategies
The momentum trading strategy is to aims at the major move of the market price of an asset in the financial market.
These major moves of prices are driven by news data or as a result of a reversal of trend around a yearly-high or yearly-low points value.
This type of trading plan guarantees a certain percentage of profit even if there would be a reversal or market turning points, a smart day trader would have made a meaningful profit from the market.
The risk applied in this strategy is worth taking because profit is guaranteed.
Scalping as Day Trading Strategies
The scalping strategy is a kind of day trading strategy that results in many small profits accumulation giving birth to a huge profit.
Scalping is a strategy for day traders who are quick decision-makers, confident and disciplined individuals.
Losses are minimized while aiming at just a little profit for each trade.
Accumulation of many 10-pips at a time could be the goal of a scalp trader.
Retracement Move as Day Trading Strategies
Traders looking to place a trade order in a retracement move are patient and never confused individuals.
The goal is to take about 20% to 40% of the retracement move and exit with profit.
They are never distracted but rather remain focused until the aim is achieved, stop loss is placed above price decline and profit is targeted just before the initial rise of price.
Different candlestick patterns and or chart patterns are employed with other technical indicators to make a better judgment of their decision making.
Breakout Move as Day Trading Strategies
Breakout trading is another type of trading plan used by day traders to execute trades for profit.
A breakout trader looks for a ranging market, and patiently lookout for a breakout while taking maximum advantage of the breakout.
A smart breakout trader employs a trailing stop loss skill to ride the breakout for maximum profit.
This trading technique could be simple for a day trading beginner.
However, the higher the volume of the breakouts, the higher the breakout.
Profit could be targeted to the next support or resistance.
News is a paramount aspect of day trading strategy that beginners, intermediate and advanced traders can not but put maximum concentration towards it.
A strong decline or rise in the price of an asset is more noticeable at the release of news data, economic news, or political news.
High impact news generates spikes in market price and could make a trader lose or win so much money.
A smart trader must be the first to look out for daily news before knowing what currency pair is advisable to be traded for the day.
This post does not guarantee 100% winning trades. You have to employ other trading plans and master of day trading strategies using price action patterns to effect these strategies and make a better earning from trading the financial market.
We would like to hear your view.