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Day trading has always been a tough game, requiring a very strong psyche, discipline and a high level of trading skills to succeed in.

Nowadays though it's even harder due to the stronger competition, not only by humans but especially by computers trading at a speed a human trader simply can not match up to. High-Frequency Trading is happening in literally all of the popular markets out there and like Chess, scalping has become a game where humans cannot win against the AIs anymore. Add to that the speed/location advantage of the HFT shops and the odds of success decrease even more.

My advice is to forget about scalping. Even without the trading bots, odds of success to make money scalping are very low as the trading costs involved are incredibly hard to overcome. To not get completely killed by trading costs you need to trade in very liquid markets. But that's exactly where the robots are.

But not everything is lost, maybe all you have to do is to slightly adapt as a day trader. Here are some of the things you can do:

- The longer your trades last, the higher your profits (and losses) will be on average. It's a simple fact, if your trades last 4 hours on average, you'll be much more likely to catch a big move than if you average trade lasts 5 minutes. This way the HFTs can't hurt you as much anymore and also trading costs will have much less of an impact.

- You don't have to do 20 trades per day to be a successful day trader, quite the opposite! The more you trade, the higher your trading costs and believe me these trading costs will kill you in the long run.

- Don't get married to a specific market, instead, diversify your day trading over different, uncorrelated markets. This will strongly increase your chances of success as you'll stop seeing opportunities in a market where there aren't any.

- Day trade only markets that provide a good bang for the buck. I do this by looking at the average daily range of a market in relation to the average trading costs.

- Trade the news. I know you often hear the opposite advice but if you learn how to do this right, trading the news is one of the best ways to day trade. Just look at the markets, especially currencies. Isn't it true that most big moves happen right when some economic report is coming out? Sure, volatility explodes and liquidity often isn't that great. But hey, isn't high volatility exactly what you're looking for as a day trader? Now first you need to do your homework of course and have a plan ready on how to trade each of the specific news events.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Editors’ Picks

EUR/USD holds below 1.0900 as US political violence boosts US Dollar

EUR/USD holds below 1.0900 as US political violence boosts US Dollar

EUR/USD attracts some sellers around 1.0885 during the early Asian session on Monday. The major pair edges lower amid risk aversion, triggering a fresh bid of the US Dollar. The Eurozone May Industrial Production, July NY Empire State Manufacturing Index will be released on Monday, along with the Fed's Mary Daly speech. 

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GBP/USD corrects from one-year peak amid modest USD strength, downside seems cushioned

GBP/USD corrects from one-year peak amid modest USD strength, downside seems cushioned

The GBP/USD pair attracts some selling during the Asian session on Monday and for now, seems to have snapped a three-day winning streak to the 1.3000 neighborhood, or its highest level since July 2023.

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Japanese Yen retraces gains despite increased risks of further intervention

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The Japanese Yen edges lower as the US Dollar improves due to higher Treasury yields. Japanese Chief Cabinet Secretary Yoshimasa Hayashi has expressed readiness to utilize all available measures concerning forex matters. Fed’s Goolsbee stated that the US economy appears to be on track to achieve 2% inflation.

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AUD/USD attracts some sellers below 0.6800 ahead of Chinese data

AUD/USD attracts some sellers below 0.6800 ahead of Chinese data

The AUD/USD pair trades on a weaker note around 0.6770, snapping the four-day winning streak during the early Asian session on Monday. The recovery of the US Dollar provides some support to the pair.

AUD/USD News

EUR/USD holds below 1.0900 as US political violence boosts US Dollar

EUR/USD holds below 1.0900 as US political violence boosts US Dollar

EUR/USD attracts some sellers around 1.0885 during the early Asian session on Monday. The major pair edges lower amid risk aversion, triggering a fresh bid of the US Dollar. The Eurozone May Industrial Production, July NY Empire State Manufacturing Index will be released on Monday, along with the Fed's Mary Daly speech. 

EUR/USD News

Gold edges lower near $2,400 on US Dollar rebounds

Gold edges lower near $2,400 on US Dollar rebounds

Gold price trades in negative territory near $2,405 on Monday during the early Asian session. The hotter-than-expected Wholesale price inflation in the United States for June weighs on the precious metal. 

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Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu erases losses from past week, eyes 18% gains

Shiba Inu traders are anticipating the roll-out of futures contracts, products like Exchange Traded Funds that could boost the asset’s utility. An IBC report shows the contract is expected to be listed post Monday, July 15.

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Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation Premium

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Fist in the air and on with the fight - that has been the historic picture that former President Donald Trump shortly after he survived an assassination attempt on his life. Trump was injured in his ear but seems to have come out stronger politically from the shocking political violence. 

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