Day Trading For Profit In Volatile Market


Simpler Trading Team

8 min read

The market may look beat up right now – with big drops looking for the floor of the indices and rate hikes by the Central Bank that have put consumers and traders in a foul mood.

In an uncertain environment like this, day trading for profit requires a sound trading plan and tools to keep the wild market in check and the trading account on the plus side.

Day trading is risky, yet still a worthwhile skill that can be used to maneuver a choppy, bearish market environment. This trading method can be a tool used as a preferred trading strategy across stocks, options, and futures. Other traders reserve day trading for times like this when the markets experience volatility.

(Check out the free video, above, for insight into trading this changing market.)

What is day trading?

Day trading differs from swing or position trading in a few ways.

Swing trading is still an analytical form of trading but it involves a longer time frame of days, weeks, or sometimes even months. Predicting market momentum upward or downward drives trading setups and strategies.

Day traders typically buy and sell securities on the same day, often at multiple points throughout the day. They rely on indicators and real-time information for quick decisions.

Some day traders trade on a part-time basis – jumping into the market in the morning or afternoon and pursuing a different career the rest of the day. Other day traders put a lot of effort into choosing companies and industry focus – which means technical analysis, preparation, and review is required. As a result, some turn day trading into a full-time job.

Day trading can be a good choice for traders who want a more active trading environment.

Is day trading worth the risk?

For many traders, there is a certain allure from the risk day trading brings.

One appeal for day traders is being their own boss. Traders, in general, work from home and are responsible for their own successes. Many people pursue trading as a career to have the freedom from corporate constraints and to enjoy the entrepreneurial spirit it provides.

This means traders can work a plan to kick to the curb the long drive to the conventional office and static schedules. Traders can day trade from any location with internet service. Day traders typically trade during the opening and closing hours of the market. That’s when the greatest volatility occurs and the most opportunities exist to capture a profit.

Day traders have various backgrounds. Many choose to learn from mentors, courses, and live-trading resources. A college degree or a prior job is not required. Some day traders choose this path after years in other careers. Some knew as early as their high school years this was a career they wanted to pursue.

One specific advantage of day trading is the ability for traders to avoid overnight risk. Day traders complete trades by the market close. With longer-term strategies, a trader may hold a setup for days or weeks. As a result, a position may plummet and lose money.

Day traders strive to get in and out the same day.

As longer term traders “wait for structure” or for markets to stabilize, traders in the Simpler Trading Day Trading Room are able to capitalize on sudden moves to the downside – and to the upside.

These quick movements allow day traders to short the markets, which is something longer-term traders often miss when they see the markets going down.

Day trading – be aware of the rules

Even with these advantages, traders should also be aware of the drawbacks.

Day trading requires a high minimum balance. According to U.S. regulations, day traders need a $25,000 minimum balance in their trading accounts at the end of the trading day. This is called the Pattern Day Trader (PDT) rule. Traders at Simpler have developed strategies to work the markets without setting off alarm bells.

All traders, especially when day trading, should be responsible and create a trading plan and to structure the trading day. That means traders need to watch the market, keep up with current events, develop strategies, and exercise sound trade setups.

Trading is at least 90% psychological.

There is a risk of overtrading, and day trading is no exception. Traders who lose on a trade may choose to “revenge trade” to earn money back. But this can lead to a downward spiral of even more capital loss. Such moves can wipe out an account in a short amount of time.

Trading also involves stress. Day trading involves swift moves in the market, and decisions to enter or exit a trade must be made quickly. This style is not for everyone and self-discipline is a required skill to develop and practice daily.

Good risk management is key to becoming a successful day trader long term. This is at the heart of  Simpler Trading… building a community of traders and having mentors who share proven strategies and real-time experiences.

Simpler Trading Founder John Carter has said, “The markets are going to change, but good habits do not.”

How to start day trading

The popularity of day trading skyrocketed during the pandemic as people sought more opportunities to work from home. Day trading can be an exciting hobby – or even career.

Learning how to start day trading requires mental preparation and developing a plan to get started.

Every successful trader, regardless of expertise, has losing trades – and days. Mindset is everything. No trader sets out to lose money. Traders need to understand that taking a loss along with the wins is part of the process. This will allow your emotional state – and desire to keep trading – to remain intact.

Traders who learn and make trades in sync with an experienced trader benefit from having a mentor by growing their abilities and learning to trade more efficiently.

Simpler’s traders create an atmosphere for day traders that focuses on the excitement of  trading while not creating an overwhelming environment. Having access to a Simpler mentor helps traders navigate uptrends and downtrends; sharp reversals; and a persistent choppy market like the current environment.

Traders need to acquire the essentials – a computer, an online trading platform, and charting software. They also need to prepare mentally and emotionally for the ups and downs that lie ahead.

Simpler’s traders have researched the markets extensively to create and provide charting indicators to make this a much smoother educational process.

Day traders don’t have to trade alone

So often, market participants see bearish momentum and hastily assume, “The markets are going down… people must be losing money.”

In reality, the movement to the downside can open up day trading opportunities for those who know how to find them. Traders at Simpler understand it is fear that drives price action in the market rather than greed.

Simpler’s traders know well the hazards of learning how to day trade alone. This is why our team of traders feels this is a crucial area of trading education. They don’t want any trader to attempt a high-stakes learning curve alone.

Our full-time team – with more than 200 years of combined experience – trade their own money and they also support the other traders in the learning process. They understand it is important to show others how to turn the limitations and rules of day trading into advantages.

Being in the Simpler Day Trading Room helps traders capitalize on catching downside moves in this volatile market. The goal is to find the best stocks in play and take advantage of breakouts and strong momentum.

Members of the Simpler Day Trading Room have access to our team of day traders: Jack Roberts, Joe Rokop, and others. Members also receive weekly video recaps and a watchlist with a curated list of tickers.

It is in this live-trading room that traders learn about the world of day trading as a focused strategy to target  profit opportunities throughout each day. This fast-paced environment covers the keys of day trading – technical analysis, favorite day trading patterns, trendlines.

Our day trading team gives a rundown on daily market events and shares how they apply day  trading tools and strategies. Traders can learn the same day trading strategies that are used by Simpler’s traders each time they secure a win.

If you think day trading may be for you, we invite you to try the Simpler Day Trading Room.

Experience day trading first-hand – a live-trading room with question and answer access with veteran day trading mentors.

The team at Simpler Trading is ready to share the best tools and strategies for day trading in this wild market.