Intraday Trading: A Complete Guide for Beginners

What Is Day Trading and How Does It Differ from Other Approaches

Day trading is a trading method where the participant opens and closes positions within a single trading day, without leaving assets in the portfolio overnight. The main goal is to profit from short-term fluctuations in value triggered by news events, technical signals, or supply and demand movements. Unlike long-term investing, where positions are held for months or years, this approach requires agility and constant monitoring of trades.

Intraday trading differs fundamentally from swing trading and positional trading in terms of time horizon. Swing traders hold positions for several days or weeks, capturing major price waves, while positional traders focus on long-term trends. Day trading concentrates on microscopic fluctuations within a day, making it more intense and requiring continuous attention to charts.

Illustration: a swing trader might hold a position in Ethereum for a week expecting a 15–20% gain, whereas a day trader will close the trade in a couple of hours, earning 1–2% on a short move. Cryptocurrency markets are especially popular for this style due to high volatility. Bitcoin can rise or fall by 5–10% within hours, creating numerous opportunities for speculators. However, such mobility also amplifies potential losses.

Factors Contributing to the Development of Day Trading

Intraday trading has become widespread for several reasons. Technological progress has made market access simple and democratic. Modern platforms offer user-friendly analytical tools, low commissions, and intuitive interfaces, attracting inexperienced participants.

The second factor is the explosive growth of the crypto segment, which began with Bitcoin’s boom in 2017. Crypto assets are traded 24/7, unlike traditional stock markets, making them ideal for intraday operations. The high volatility of the crypto sphere makes it especially attractive for speculative trading.

For example, in 2021, Ethereum increased by 20% in a single day after an announcement of a network upgrade, allowing traders caught on this wave to earn significant profits. According to financial research, daily trading volumes of cryptocurrencies in 2021 reached around $100 billion, demonstrating the scale of interest in this type of speculation.

An additional motivation is the possibility of earning daily profits. Unlike long-term investing, where results are visible after years, day traders can make money as soon as tomorrow. For instance, in 2024, the Solana token rose by 15% within hours after announcing a strategic partnership, enabling quick profits for active participants. But such dynamism requires serious discipline, advanced analytical skills, and proper tool selection.

Fundamental Principles of Short-Interval Trading

Basics of Same-Day Trades

The essence of day trading is to extract income from minimal price shifts within 24 hours. Traders analyze charts on small timeframes—from one minute to an hour—to identify entry and exit points. On a 5-minute Bitcoin chart, a specialist might spot a local uptrend caused by a surge in trading volume, open a long position, and close it after 15 minutes with a 1–2% profit.

The reasons for the popularity of this approach lie in the liquidity and volatility of the crypto space. Liquidity allows quick entry and exit without significant slippage. Large tokens like Bitcoin and Ethereum have huge trading volumes, ensuring narrow spreads. Volatility creates frequent price swings for profit extraction. Tokens like Avalanche or Polygon can move 5–10% per hour—an ideal scenario for speculation.

Another advantage is reducing risks from overnight events. News about regulation or hacks can sharply change prices overnight. Closing positions by the end of the day helps speculators avoid such “black swan” events. In 2022, after the mining ban in China, Bitcoin dropped 20% overnight, dealing a blow to long-term investors but leaving day traders unharmed.

Need for Rapid Response and Constant Monitoring

Intraday trading requires constant monitoring, as prices change within seconds. Quick processing of information—charts, indicator signals, news feeds—is essential to make decisions. If a large player starts aggressively selling Bitcoin, the price may plummet, and traders must react instantly to stop losses.

Price alerts and automatic orders are used for operational control. It’s important to choose a reliable platform with fast order execution. Additionally, keeping an eye on news is critical—they can trigger sharp movements. In 2024, an announcement of new crypto regulation in the US caused a 10% market drop within hours. Attentive traders prepared short positions in advance.

Monitoring also includes analyzing market sentiment via social media. For example, a spike in mentions of Shiba Inu in 2021 preceded a 300% weekly surge. Such data help speculators anticipate short-term movements.

Strategies for Day Trading

Main Methods of Analysis and Trading

Several popular approaches exist for intraday trading: technical analysis, news trading, and scalping.

Technical Analysis as the Foundation

This method forecasts price movements based on historical data and patterns. Traders use moving averages, Relative Strength Index (RSI), support/resistance levels, and Bollinger Bands to determine entry and exit points.

Scenario: Ethereum approaches resistance at $3000, and RSI shows overbought conditions (above 70). The trader opens a short, expecting a decline, and closes at $2950, earning 1.7% in an hour. This strategy is accessible to beginners due to clear signals. Experienced traders combine multiple indicators for confirmation.

News Trading

This approach relies on market reactions to significant events: economic reports, regulatory decisions, project announcements. In 2023, Ethereum’s (EIP-4844) upgrade announcement pushed ETH up 8% in a day. Traders following the news could open longs and profit. However, this method requires caution—markets can react unpredictably. In 2022, news of a crypto ban in India caused panic, but Bitcoin unexpectedly surged.

Scalping as a Fast Profit Strategy

Scalping involves multiple trades per day on minimal movements (0.1–0.5%). A trader might buy Cardano at $1.500 and sell at $1.505 within minutes, earning $5. Repeating this 20 times can generate $100 daily profit. Scalping demands maximum concentration and instant execution, making platform fee structures critical.

Choosing the Optimal Strategy for Beginners

Newcomers are advised to start with simple methods, such as trend trading with moving averages. The MA crossover strategy provides clear signals: when the 50-day MA crosses above the 200-day MA, it’s a buy signal.

It’s recommended to test the method on a demo account without risking real capital. Avoid complex approaches like arbitrage or high-frequency trading—they require experience and substantial resources. Focus on one market and asset. Choose Bitcoin or Ethereum, study their behavior on 15-minute charts. This develops an understanding of market dynamics.

Tools for Successful Trading

Platform Selection and Key Features

The platform is the foundation of success. A good exchange should offer minimal commissions, fast execution, a user-friendly interface, and access to diverse assets. Many reputable platforms support futures trading, allowing leverage. With 10x leverage, a 1% growth yields a 10% profit. Other popular exchanges are also suitable for day trading, each with its advantages.

For analysis, third-party tools integrated with most platforms are recommended. These services provide access to dozens of indicators, drawing tools, and community idea exchanges.

Use of Indicators and Drawing Tools

Charts and indicators form the basis of technical analysis:

• Moving Averages (MA): Show trend direction. Crossings often signal buy or sell. The crossing of 20-day MA over 50-day MA is a golden cross, indicating a buy.
• RSI (Relative Strength Index): Measures overbought/oversold conditions. Above 70 suggests potential decline, below 30 indicates growth. Bitcoin RSI at 80 signals a likely correction.
• Fibonacci Levels: Identify support and resistance zones. A 38.2% drop in ETH could be a reversal point.
• Bollinger Bands: Show volatility. Price above the band indicates overbought, below indicates oversold.

Specialized platforms with access to indicators and drawing tools are used for analysis. Multiple indicators can be combined on a single chart for comprehensive assessment.

Additional Analytical Tools

Besides basic charts, other useful services include:

• Heatmaps: Show activity across assets, highlighting tokens with the highest volume.
• Screeners: Automatically filter assets based on criteria (e.g., RSI below 30).
• Trading Bots: Automate trades based on set parameters, helping beginners focus on strategy.

Risks of Intraday Trading

Managing Potential Losses

Day trading involves high risks due to volatility and speed. Studies show that about 70% of beginners lose money initially due to lack of experience and poor risk management.

For example, the collapse of Terra (LUNA) in 2022 caused losses for many who failed to close positions timely. To minimize losses, apply:

• Stop-loss: An automatic order to limit losses. If you buy Bitcoin at $30,000, set a stop at $29,500—risking 1.7%.
• Capital management: Do not risk more than 1–2% per trade. With a $10,000 deposit, maximum risk is $100–$200. This rule helps survive a series of losses.
• Avoid overtrading: Limit to 2–3 trades per day to maintain focus.
• Caution with leverage: Leverage of 10x or 20x amplifies both gains and losses. In 2023, a trader with 20x leverage lost their entire deposit after a 15% drop. Beginners should start without leverage.

Psychological and Emotional Control

Day trading is emotionally intense. Fear of missing out (FOMO) or panic selling often lead to impulsive actions. In 2021, during the Dogecoin boom, many bought at the peak due to FOMO, losing when prices corrected 50%.

Research shows that 60% of traders experience burnout from stress. To control emotions:

• Follow a plan: Define a strategy and stick to it, ignoring impulses.
• Take breaks: After a losing trade, rest—taking a 30-minute pause reduces errors by 20%.
• Trade journal: Record trades and emotions for analysis. If you notice FOMO buying at peaks, adjust behavior.
• Mindfulness practices: Meditation and breathing exercises before trading reduce stress.

How to Start a Career in Day Trading

Step-by-Step Guide for Beginners

• Education: Learn market basics and technical analysis. Seek useful articles and tutorials. Read classic books on market analysis to understand fundamentals.
• Demo account: Practice risk-free. Many platforms offer demo modes. Try trend trading on 15-minute charts.
• Starting capital: Begin with $500 minimal risk. Increase deposit as experience grows.
• Personal plan: Set daily trade and risk limits. Decide on a maximum of 3 trades and no more than 1% risk.
• Focus on assets: Concentrate on 1–2 highly liquid assets like Bitcoin or Ethereum.
• Weekly review: Check effectiveness. If the strategy is unprofitable, revise it.

Tips from Experienced Professionals

Noted authors emphasize: focus on one strategy and perfect it. Don’t try to trade everything at once. If you choose scalping, trade only on 1-minute charts.

Market legends stress the importance of discipline. Never deviate from your plan, even under emotional pressure. If you decide to close a loss at 2%, do so without hesitation.

Community advice: start with short timeframes (5–15 minutes) and gradually move to longer ones to understand trends. Use indicators like RSI and MACD to confirm signals.

Examples of Successful Trades

Scenario 1: Technical Analysis

In June 2024, a trader noticed Solana touched a support level $140 on a 15-minute chart, RSI dropped to 25 (oversold). He opened a long with $5000 leverage 5x, stop-loss at $138, take-profit at $145. After 2 hours, the price hit the target, yielding $178 a profit (3.5% of the deposit).

Scenario 2: News Trading

In March 2024, a trader followed an announcement of a potential partnership of a major service. Upon the announcement, he opened a long at $2000 around $20, take-profit at $22. The price increased by 10% within an hour, and he closed with a profit.

These examples demonstrate how combining analysis and discipline leads to success but also highlight the importance of proper risk management.

Final Recommendations

$200 When Day Trading Might Be for You

Day trading suits those willing to dedicate hours to market analysis, disciplined, and prepared for risks. If you have 3–4 hours daily for monitoring and an initial capital of $500–$1000, it could be your niche. Be prepared for initial losses—they are part of the learning curve.

Key Principles for Long-Term Success

• Simple strategies: Trend trading or scalping are good starting points.
• Reliable platforms: Choose reputable exchanges with low fees and a wide range of assets.
• Risk management: Always use stop-loss, risking no more than 1–2% of capital.
• Continuous learning: Read, follow news, analyze your trades.
• Patience: Success comes with experience, not instantly. Focus on learning.

Day trading is not a magic way to get rich, but with the right approach, it can become a profitable activity. Start small, and over time, turn skills into steady income.