Module 26: Day Trading
Key Takeaways
- Day traders open and close positions within the same day.
- No overnight risk, but it demands focus during sessions.
- Session timing and a daily plan are crucial.
Intraday strategies
Common approaches include trend-following pullbacks, opening-range breakouts, VWAP bounces, and S/R reversals. Day traders typically operate on the 5m–1h charts, with a higher timeframe defining the bias. A written daily plan (key levels, news, bias) keeps decisions objective.
Session timing
Volatility concentrates around session opens and the London–New York overlap. Many day traders focus on the first few hours of their chosen session when liquidity and movement are highest, then stop once conditions quieten.
💡 Note
Closing positions before the session ends avoids overnight gaps and swap fees — a key advantage of day trading over swing trading.
Frequently Asked Questions
Quality over quantity — often just 1–3 high-probability setups. Overtrading is the main day-trading trap.