You are looking for hhigh returns for your assets? Then you could Day trading the ideal solution be! But short-term trading also harbors Major risks. We have important Day trading tips with which you candrastically increase your chances of success can.
The most important in a nutshell
- Day trading is a strategy in which trading positions are closed within one day
- Many trades per day can result in high profits
- The risk of losses is considerable
- We have put together some important day trading tips to help you with this strategy
CapTrader can do that:
Despite our tips, day trading is a risky undertaking in which you can quickly lose considerable sums of money! We strongly recommend that you avoid day trading and Day trading strategies initially with a free CapTrader demo account to try out!
What is day trading and why do you need day trading tips?
Before we make concrete Day trading tips we would first like to discuss the basics of a Day trading strategy speak. After all, a solid understanding of the approach and risks is the basis for successful action.
With day trading you use Short-term transactions on a stock exchange in order to make a profit. The name comes from the fact that each position is closed by the end of a trading day at the latest is made. This is why the term "intraday trading" is also commonly used.
This short period of time means that the Avoid dangerous phase between two trading days. From the closing bell of one day to the opening of the next, there can be considerable fluctuations to which you cannot react because the stock exchanges are closed. Day trading eliminates this risk.
On the other hand, the desired Profits in a very short time frame can be achieved. This can be achieved in two ways: On the one hand, day traders use Products with often high leverage. This increases all gains and losses by a predefined factor.
In the best case, this leads to very high revenues even with the smallest price movements. However, if the trade does not go according to plan, it can also to large losses come!
The second important success factor is the Allocation to several tradesDay traders place many dozens to several hundred positions per week. Failures are inevitable, but they are closed as quickly as possible. It is important that the majority of trades are successful in the long term.
This sthe significance of individual transactions and the No bets on dramatic price changes largely. Instead, the company's own Day trading strategy and the disciplined implementation of these plays a major role. Day traders are therefore not dependent on the good performance of each individual investment.
Traders use kShort-term long and short positionsin order to profit from rising and falling prices. However, this approach high demands on dealers' market knowledge and analytical skills!
Day trading is extremely risky and very likely to lead to losses. Less than 10 percent of all active day traders make a profit in the long term. Over a short period of time, the success rate looks somewhat better.
Research by the Cass Business School at the City University of London has shown that even an investment strategy determined at random by a computer is more successful than the average day trader!
Also Buy-and-hold investors achieve a 30 percent better return on average. The fact that men on average act much more emotionally is also evident in day trading: female day traders are much more successful here, as they tend to keep a cool head even after failures.
You should therefore think carefully about whether you really want to start day trading. Long-term investment strategies can also generate high returns. You can also, for example, use the Options trading or CapTraders Managed Accounts provide additional income.
CapTrader can do that:
Day traders love CapTrader because of the professional service and excellent conditions (trade shares from as little as 0.01 euros per share!). But investors also get their money's worth here: no custody account fee and access to more than 1.2 million shares and other assets will lead your long-term strategy to success!
How day trading differs from other strategies
Day trading is a special type of stock market trading that requires a high level of discipline and a lot of time and work. It differs quite dramatically from other forms of investment!
Whether day trading and our day trading tips are suitable for you depends on your personal goals and opportunities. One Differentiation from other investment strategies can help you decide whether day trading is right for you:
Long-term (passive) investments
We summarize under "long-term investments" several investment strategies, such as for example, buy-and-hold or the dividend strategy together. Investors bet on the continuous growth of the economy and buy shares in companies that they believe have a rosy future.
This form of investment are particularly suitable for people who have a very long investment period available (several years or decades). Another advantage is the low time expenditureAfter the initial selection of the desired assets, they can remain largely unattended in the custody account.
Regular checks are recommended; However, there is no daily effort as with day trading. Long-term investing places comparatively few demands on your broker, as only long positions are used.
That means: Low fees and large selection like CapTrader are advantageous, but not absolutely necessary. Due to the small number of trades, differences are less significant here.
Active trading, swing trading
People who have a keen interest in the financial markets and wealth accumulation often opt for a more active approach. In addition Short and medium-term assets for use. This category includes, for example, the Options trading or trading with Stocksraw materials or Futures over short periods of time.
In contrast to long-term investments, in this category we find both short and long positions. This means that investors also benefit from falling prices. Security mechanisms and profit-taking through complex order forms are also common here.
This means that active trading greater demands on the broker: You must select a provider that Complex order forms supported and also the Short sale for various assets.
CapTrader can do that:
At CapTrader you will find the ideal conditions for active trading: over 100 different order forms and algorithms, favorable conditions (share trading from EUR 0.01 per share) and free access to professional trading software such as AgenaTrader.
Active investing is significantly more time than with long-term investment strategies. The Risk is generally greateras more complex financial instruments are used in greater numbers. Of course, these risks are reflected in the Chance of higher profits down.
Under "Swing trading strategies" we summarize active trading styles in which we hold investments for a period of time. between one day and several weeks hold. The aim is to fully exploit the potential profit.
In addition, traders use the Oscillations ("swings") during major trends and benefit in several ways. The Risk is higher here than with a long-term strategy, as potential losses cannot be offset over several years.
Day trading
The Day trading is one of the fastest forms of stock market trading - only the "Scalping" focuses on even shorter periods of time. It is particularly suitable for for people with good analytical skills, concentration and discipline.
Also a Comprehensive knowledge of the financial market is absolutely necessary. You will also need some timeas opening, monitoring and closing positions as well as research can take many hours.
In day trading, the Opportunity for high profits versus considerable risks. The majority of day traders lose money with this form of stock market trading! Only a few traders are profitable in the long term.
As a rule, they have accumulated particularly extensive know-how and execute their strategies in a disciplined manner and without emotional influence.
Day trading tips for successful trading
The following Day trading tips originate from particularly successful traders and have proven themselves time and time again. As one of the leading brokers for day trading in German-speaking countries, CapTrader has been supporting some of the most successful traders for many years.
Of course, a number of less successful traders also use our platform - analyzing losses is an important source for avoiding future mistakes! These experiences have also been incorporated into our day trading tips.
We generally recommend that all day trading tips and strategies are first applied to a Demo account to test. There is no risk to your capital here, as no real assets are traded. A CapTrader demo account gives you access to all functions and professional trading software.
If your approach proves successful here, you can then switch to a "real" account and start active trading. However, should kset a successyou should alternative Day trading strategies considerread our day trading tips again or decide on a different form of trading.
1. the right start
One of the most important day trading tips is undoubtedly, start trading properlyThe Create an account with CapTrader is completed and capital deposited in just a few seconds - but that doesn't mean you should get started right away!
Instead, you should first build up knowledge, find a suitable Day trading strategy and test them on a demo account. To this end, we have summarized several successful approaches in an article on the topic of "Day trading strategies" and "Open an online custody account" summarized for you.
Choose a day trading strategythat suits you, your goals and your skills. You must also Decide on a suitable asset: Der Handel mit Forex-Paaren hat zum Beispiel andere Eigenheiten und Funktionsweisen als das Daytrading mit Aktien, ETFs, Rohstoffen usw.
Familiarize yourself with the properties of the selected asset. Be sure to also study factors such as the Liquidity and volatilityobserve the influence of news and other values on "your asset" and try to develop a feel for the forecast.
The Day trading with shares is one of the good day trading tips: Start by using assets that you are familiar with. For most amateur investors, these are probably shares, as they are among the most popular investments.
Asset classes such as commodities or forex can unnecessarily complex for newcomers and require some initial training.
If your first steps with a Demo account are successful, you can gradually switch to a live account. How high your Day trading starting capital depends entirely on you and your Day trading strategy from. In general, initial positions can be opened with just a few euros.
2. familiarize yourself with the topic of day trading taxes in good time
Taxes are not a particularly attractive topic, but is particularly important in day trading. Successful day trading leads to considerable profits, which of course have to be taxed accordingly: This is where in Germany the flat-rate withholding tax of 25 percent plus solidarity surcharge and church tax, if applicable.
Also note the difference between a broker based in Germany and a broker based in the USA. Brokers like CapTraderwho is based abroad. The latter variant offers you more tax leeway and can lead to higher profits, as you can pay your taxes yourself and at a later date!
3. check whether day trading is suitable for you at all
No form of investment is generally better or worse than another! Although there are particularly successful day traders who rake in millions, there are a large number of traders who make huge losses through day trading.
A simple, long-term equity investment strategy can achieve better results over a period of several years than the average day trader. A An important day trading tip can therefore also be to advise against day trading!
Especially if you use the Consider the time required and offset the necessary hours against your other working time (average hourly wage), the Day trading often comparatively poor off. For example, active trading in options or long-term equity investments may be more suitable here.
Don't be dazzled by the idea of high profits without leaving the house: Day trading is an investment strategy with its own advantages and disadvantages. You should objectively check whether this approach suits you and your possibilities!
Social media posts in particular deliberately convey the impression that day trading is a simple recipe for wealth. All you have to do is book coaching from the respective provider and follow their day trading tips to earn millions in no time.
Naturally these full-bodied marketing promises do not match reality! It is difficult to achieve long-term success through day trading. However, it is even more difficult to turn day trading into a full-time job, as is often portrayed in advertisements.
If you have already failed with your demo account, we strongly advise against switching to "live" day trading!
Successful day traders is also characterized by a Range of properties from. These include:
- Invest a lot of time and energy in day trading
- Are structured and work on their strategy every day
- Do not tend to make emotional decisions, but act in a disciplined manner and according to a plan
- Are familiar with the markets and the financial world in general
- Invest a lot of time in research and market analysis in addition to actual trading
4. deal with chart patterns and indicators
If you open positions at random and close them again at the end of the day, you are far from being a day trader - but you will become poor very quickly! With day trading you use Signals to predict price movements and to act accordingly.
Here you can Thousands of such indicators are available. However, the most important are undoubtedly the Chart patterns, also known as "technical analysis" called. Here we look at price trends and Identify patternTriangles, wedges, cups with handles and other shapes help to better predict future developments.
Our Day trading tip: familiarize yourself with the interpretation of chart patterns and get to know the most important examples before you start trading.
Especially the Recognizing trends, trend reversals and continuation are enormously important. The identification of trends is the entry point into day trading for many investors, but experienced traders also like to rely on trend analysis.
Generally speaking, that's what it's all about, The same idea can be seen in many areas where numerous investors follow the same idea. An understanding of the financial market is just as important as psychological intuition!
The typical form of presentation is the Candle pattern. This form of chart reflects a particularly large amount of data, as it Information on the value at the opening and closing of the exchanges as well as the highest and lowest prices includes.
5. create a trading plan
A trading plan represents the concrete realization of your Day trading strategy is. Our day trading tip is to use such a plan to determine entry and exit points.
Here you can make a note, at which prices or developments you open or close trades. You then execute this plan and can thus keep emotions out of the business.
However, this day trading tip includes not only general information! Instead, you should make the plan asDescribing the project as concretely as possible and specifying precise key figures. Which values come into question here depends on your chosen strategy and your objectives.
If a planned trade does not match the specifications of your plan, it will not be executed - even if it requires a certain amount of willpower.
6. familiarize yourself with the trading hours
Day trading takes place with Exchange-traded assets instead. Shares and other securities can be only during the opening hours of the respective stock exchanges can be bought and sold, so that day traders are also limited to this period.
Other products, such as Currency pairs (Forex) or cryptocurrencies, on the other hand, are not subject to any time restrictions.
Due to the Time difference There are also various opportunities for shares and other securities in trading centers around the world. Our day trading tip is to familiarize yourself with these opportunities and the times exactly!
Even if you opt for time-independent assets, such as Forex, you will benefit from a close look at the stock markets.
Three important locations are usually used for day trading: the Asian stock exchanges (primarily the stock exchange in Japan), the London Stock Exchange and US trading centers.
For a trader in Europe, the sequence is also the same, i.e. the Asian stock exchanges open first, followed by London and then the USA.
Day trading tip: Pay attention to different stock exchange sessions according to German time!
The time difference ensures that the Trading on different exchanges possible at almost any time is. Our day trading tip: Familiarize yourself with the times and signals of the respective exchanges!
Each trading venue has different characteristics and can act as an indicator for trends. The London Stock Exchange is particularly popular for short-term tradingHowever, other places can also bring lucrative results - above all, the asset you choose to use determines the best trading place.
There are even real day trading insider tips if you trade rather rare stocks ...
In the day trading sector, some "Wisdom" established, which apply comparatively often. These include:
- Markets often have low liquidity on Mondays and are therefore not suitable for day trading, as unforeseen price fluctuations can occur on these days.
- The first hour after the opening of a stock exchange often sets the mood for the rest of the trading day and can be a useful indicator.
- Has the market already 30 pips ("Price Interest Point", smallest possible movement of a price) in the course of the current trading day, it makes sense, not to place any further trades.
- Remains a Trend persists during the last hour of the London Stock Exchangeit is quite strong and will expected to last longer. Of course, the reverse is also true for signs of weakness. The general rule on all stock markets is that the last phase of the trading day is very well suited to the Assessing the quality of a trend - especially if it lasts for several days in a row.
- A good signal that a Trend comes to an end is a Upswing in the morningwhich leads to a weak closing price.
- Despite the great importance of Closing hour on the stock markets you should do not necessarily trade at these times. The closing phase should be avoided, especially on Fridays or before public holidays.
7. pay attention to volatility and liquidity
Many newcomers to day trading think extensively about possible strategies and suitable assets, but forget two important values: Volatility and liquidity!
The Volatility describes the fluctuation range of pricesi.e. how strong the upward and downward swings were. As a rule of thumb, it can be said that The higher the volatility, the more suitable an asset is for short trading strategies.
Investments with a low fluctuation range are less useful for day trading, as there is not enough movement in prices to generate significant profits. The does not mean, however, that you have to rely exclusively on products with extreme price fluctuations!
Lassen Sie sich nicht zum Handel mit Assets verleiten, die Ihnen nicht liegen, nur weil sie über eine hohe Volatilität verfügen! Das Daytrading mit Aktien ist ein guter Daytrading Tipp für alle Einsteiger, da Sie hier Hundreds of thousands of securities to choose from and can find any desired fluctuation range.
CapTrader can do that:
While with most brokers you only have a few hundred to several thousand securities to choose from, with CapTrader you have more than 1.2 million shares at your disposal! You can trade these from as little as 0.01 euros per share!
Some day traders prefer "trendy phases" with high volatility, others act preferably in quieter periods - both variants can lead to success.
The Liquidity describes the quantity of traded assets and provides information about Supply and demand. High liquidity enables us to trade for a better price, as there is a corresponding selection of buyers and sellers available.
However, depending on the strategy trading in moderately liquid products also makes sense be. However, under no circumstances should you underestimate the importance of Liquidity as a trend indicator and for your return on investment!
8. give your strategy a chance!
One of the most important day trading tips (and for any type of investment in general) is leave enough time for your strategy. Whether you are interested in Scalpingday trading with Forex or another approach: Under no circumstances should you throw in the towel too quickly if the desired success does not materialize immediately!
Most Strategies require several iterations (for example: several trading days in the case of a day trading strategy), before reliable statements can be made about their quality. Switching to a completely new strategy is only an option if there is no long-term success.
Adjustments to the current Day trading strategy can be made more freely. However, make sure that such Implementing changes in a structured and sensible way - not by gut feeling! For this purpose, it is recommended that you to record and evaluate results accurately.
Although this process can take some time and work, it is essential for optimizing your activity.
Are you losing returns because you exit a trade too late on average? Would a different distance for your trailing stop loss order be more lucrative? Do you always achieve particularly good results at a certain time on a certain stock exchange?
An analysis of your current strategy can provide answers to important questions and form the basis for a change in strategy.
This day trading tip is closely linked to the most important tip: First of all, be sure to use a Demo accountbefore you start actual trading! As already mentioned several times, you should never try out day trading in general and new strategies in particular with your "real" capital!
A free demo account from CapTrader offers you the opportunity to use new procedures without putting your assets at risk. You have access to all functions and assets as well as professional trading software for your "test run".
9. leave emotions out of it
The most difficult day trading tip to follow is probably the Leaving your emotions behind: Short-term trading is a Logical, data-based process. Feelings such as greed, anger, fear or your own ego have no place here.
The better a retailer can avoid these situations, the greater the chance of success.
A good day trading tip in this context can be, take regular breaks.
Especially after very intensive successes or failures our emotions often get the upper hand and cause us to take disproportionate risks. Therefore, do not try to repeat lucrative trades immediately or offset a loss directly with a reckless position.
Concentrate on your strategy and work disciplined on the implementation. The already mentioned Trading plan can help to act stringently and unemotionally. Only trade if your "checklist" provides for this.
Trading on gut feeling can sometimes lead to success, but in the medium and above all long term you have no chance of a positive result with this approach. Emotional actions are - in addition to a lack of expertise - the The main reason for the huge lossesthat average day traders achieve!
10. further expand your specialist knowledge
Ihre Erfolge im Daytrading sind von Ihrem Know-how abhängig. Je besser Sie Märkte, Assets, Trends, Zusammenhänge etc. verstehen, desto höher die Wahrscheinlichkeit für gute Ergebnisse. Dabei handelt es sich um einen continuous process of knowledge building!
Day traders invest a lot of time and energy in researching and sifting through news, key figures and market developments. Short-term trading is not an "education" that you complete after reading our day trading tips and a few tutorials.
Instead, you must Keeping an eye on current developments at all times and always learning new things. This effort makes day trading quite demanding, even as a hobby.
It is particularly suitable for for people who are already very interested in the world of finance and keep themselves informed, read the news, etc. anyway. However, if you start without any prior knowledge, you will have to make a considerable effort to acquire the know-how.
11. choose the right broker
Even the best day trading tips will not lead to success if a large part of your return goes to the broker! Day traders are responsible for the majority of the daily trading volume on the stock exchanges. With so many transactions per day, seemingly small costs can quickly add up!
The Choosing a suitable broker is the be-all and end-all for successful day trading. However, it can be difficult to choose among the many possible providers. However, you can quickly make a preselection using a few basic rules:
- Custody account management fee or other "basic fees" are no longer up to date. If a broker charges you a fee for holding a custody account with them, you should leave quickly!
- You need for day trading a Powerful software. A broker must provide you with such a working environment or at least allow the connection of such software.
- Pro rata fees for stock exchange trading are a major problem for day traders! Due to the large number of trades and the often considerable volumes, this can lead to high charges. The fees should therefore of course be be as low as possible.
- Pay attention to special Advantages for day traders. Some brokers offer attractive Special conditions for retailers with high trading volumes, while others even specifically prohibit such activities!
- A large selection forms the basis for your day trading. Many providers (especially some of the low-cost "neobrokers") can only offer a range of a few hundred stock market products. Here you are massively restricted and cannot implement many strategies!
- Check the Requirements for the Margin trading. Brokers have different requirements before you are allowed to start trading on margin.
The Access to efficient products is therefore limited. Before you start, make sure that you qualify for margin trading with your chosen provider.
Many newcomers underestimate the The importance of a wide selection: Even if you only want to use a single asset class (e.g. shares) for trading, you will need a extensive product catalog to implement your desired strategy.
The particularly favorable Neobroker disqualify themselves here due to the limited supplybut many traditional financial institutions are not doing well either.
Our Day trading tip: Make yourself familiar with the offer in general and especially in your preferred asset classbefore you decide!
Apropos Neobroker: Despite their high popularity, the hip trading platforms are Unsuitable for serious tradingas they No connection for professional trading software offer
The Day trading does not work with simple smartphone apps, aimed at young retail investors! One Software suite like the Trader Workstation or TradingView are the basis for successful trading.
They must therefore be provided directly by the broker or at least be easy to connect manually.
The most important point, however, is probably the Cost models of the individual providers be. With a high number of trades placed (some day traders achieve 1,000 trades and more per month), every euro counts!
With just 100 trades per month strong differences noticeableWith an order volume of 5,000 euros per trade, you pay a total of 200 euros per month with CapTrader, 2,076 euros with Comdirect and 2,991 euros with Consorsbank!
Example calculation for Apple stock on 24.01.2022/ Price: 159.60 USD. Exchange rate as at 24.01.2022
| Volume | CapTrader | SBroker | comdirect | flatex | Consorsbank | Lynx |
| 2.000 $ | 2,00 $ | 24,47 € | 15,80 € | 5,90 € | 24,95 € | 5,00 $ |
| 5.000 $ | 2,00 $ | 30,43 € | 20,76 € | 5,90 € | 29,91 € | 5,00 $ |
| 10.000 $ | 2,00 $ | 40,39 € | 30,72 € | 5,90 € | 39,87 € | 5,00 $ |
All data without guarantee (*as of 25.05.2021). Prices, unless otherwise stated, include exchange fees and were taken from the providers' price lists. Discount promotions were not taken into account.
CapTrader can do that:
With an order fee of just one cent per share for US stocks, CapTrader probably offers the lowest cost model of any broker suitable for day trading. Even with larger volumes, the costs hardly rise above the minimum amount of 2 USD per order, so that you pay very low brokerage fees in almost all cases. More than one million assets also ensure that you will always find the right product. With the Trader Workstation from Interactive Brokers, you also get free access to one of the most powerful trading programs available. TWS is considered the best platform in terms of analysis and research and is a typical day trading tip among serious traders. As alternatives, we also offer you connections for the TraderFox trading desk, Agena Trader and other platforms. Margin trading is also available at CapTrader for people aged 21 and over.
Day trading with shares: tips for securities trading
For the Day trading with shares the tips presented also apply; however, the popular Securities trading peculiarities that justify a separate presentation.
In particular the Large selection distinguishes this asset class from others!
For example, there are several dozen currency pairs available to us in forex trading, but several hundred thousand when day trading shares!
Our day trading tip: Narrow down the selection based on your desired parameters such as volatility or liquidity. This approach is much easier than searching for lucrative stocks and then comparing whether they fit your strategy.
Another important day trading stock tip: Don't make the mistake of day trading like a traditional equity investment! You do not have to wait for prices to rise, but can profit from falling prices through short positions!
Leveraged products like certificates are also here the means of choiceThis is the only way to generate attractive profits from the often small changes. Nevertheless, you should pay attention to strong fluctuations in the securities - Titles that are too stable are often not worthwhile in practice.
In contrast to traditional equity strategies, marginin-Trading can achieve high returns even with small amounts. Do you have a corresponding Account opened, you can start day trading with shares.
However, a good day trading tip here is to always focus on a appropriate hedging of trades by means of stop-loss orders. Due to the leverage effect, the potential losses from such transactions are enormous; do not expose yourself to this risk and always hedge your positions!
Our last day trading tip for trading shares: Use the extensive data available on the individual companies! Securities have the advantage that information can be researched in a matter of seconds.
Current annual reports, quarterly figures or industry data make analysis comparatively easy. The announcement of a new product or new data from competitors can also help you with the analysis. Rely on as many sources as possibleto benefit from the advantages of equity day trading!
Conclusion: These day trading tips increase your chances of success
Stock exchange trading with a term of less than one day is a risky but also lucrative business area. The large selection of assets offers extensive opportunities. At the same time, however, considerable expertise is required to navigate the sector successfully!
Our day trading tips provide an insight into Qualities that are important for a day trader: Discipline, strict planning, blocking out emotions and extensive know-how on assets, trends and the financial market in general are essential.
If you start day trading on a wild goose chase, you will quickly make big losses. Prepare your entry into day trading well with our tipsFirst of all, find a strategy that suits you.
Use these to create a Trading plan that translates your approach into concrete figures and rules. Then start with the implementation and try to act as unemotionally as possible.
Despite all the tips, day trading always depends on your own skills and expertise. Therefore, build up as much know-how as possible. This process is never complete and involves continuous training, studying news and key figures and generally "staying on the ball".
However, the undoubtedly most important day trading tip is: First start with a Demo account! Do not put your capital at risk immediately, but first test your strategy in the secure environment of a test account.
Only when your day trading strategy has shown success here should you start live trading. Even later, a demo account is important because it is ideal for testing strategy changes.
We hope that you find our Day trading tips to help you get off to a successful start. However, if you have any doubts as to whether short-term trading is suitable for you, there are many other options available. Therefore, first decide for yourself whether this strategy is right for you - This is also one of our day trading tips!
