What Is Day Trading?

The trade is won or lost before the bell rings. Check overnight futures, prior day highs/lows, economic calendar for news events, and mark your key levels on the chart. No prep = no trade.

Wait for price to reach a level that matters — a prior day high, a 4-hour support zone, a demand block. The setup comes to you. Chasing moves already underway is one of the fastest ways to blow an account.

Entry price, stop loss, target — all three before you click buy or sell. If you can't define the stop before entering, you don't have a trade plan. You have a gamble.

Enter with a limit order when possible. Move stop to breakeven once price moves in your favor. Scale out or take full profit at target. Never add to a losing position. Simple rules, rarely followed.

Every trade — win or lose — gets logged. Screenshot the chart at entry and exit. Note what you saw, what happened, what you'd change. This journal IS your edge over time. Traders who skip this stay stuck.

Markets close and you close all positions. Tomorrow is a clean slate. No revenge trading, no averaging down overnight. Day trading means starting fresh every session — that's the discipline edge.

Hold trades for seconds to a few minutes. Dozens of small wins per session. Requires laser focus, fast execution, and tight spreads. High intensity — not for everyone.

Ride strong directional moves as they develop. Enter after a breakout or a news catalyst, hold while momentum continues. Requires reading volume and tape. Best during high-volatility sessions.

Buy support, sell resistance inside a defined range. Works in low-volatility, sideways markets. The risk: ranges break. You need a clear rule for when to exit if it does.

Wait for price to break a key level with conviction (volume, range expansion). Enter on the break or the retest. High reward potential — but many breakouts fail and reverse immediately.

Fade an overextended move at a key level. Counter-trend, higher risk. Works best at extremes — PDH/PDL, round numbers, previous session highs. Requires confirmation before entry.

Trade the volatility spike around scheduled events (CPI, FOMC, NFP). Position BEFORE the number, or wait for the dust to settle and trade the follow-through. Never hold through surprise events without a defined stop.

Most firms use a 1 or 2-phase challenge. Phase 1: hit a profit target (usually 8–10%) without breaching daily drawdown (typically 4–5%) or max drawdown (8–10%). Phase 2: hit a smaller target (usually 5%) with the same rules. Pass both: funded.

Rules vary by firm — always read the fine print before buying a challenge.

Most funded traders keep 70–90% of profits. Payouts are typically requested monthly or bi-weekly. Some firms offer scaling plans — prove consistent profitability and your account size increases over time.

There is no salary. You earn only what you make from the markets, minus the firm's cut.

Traders who have a proven edge on a small personal account but lack the capital to trade meaningful size. If you can't pass a demo challenge consistently, you are not ready. The evaluation is not the product — your ability to trade profitably is. Build that first.