1. The signal is too much noise

One of the main reasons that day traders fail is because of the overwhelming signals during the day. The dense presence of trading signals provides traders with more entry opportunities, but the main challenge is how to choose the best trading signal and eliminate noise signals.

2. Price volatility is too small

Intraday trading requires us to use short timeframes, and of course, trends on these timeframes are not very long or volatile.

For example, it is very difficult for us to catch a move of about 50-100 pips on small frames, it usually ranges from 2-15 pips. And with these small moves, the transaction fees are substantial.

This is especially true if you trade one of the less volatile currency pairs like EURGBP.


3. Economic data to be released

Another problem faced by day traders is the effect of economic data disclosure (GDP, non-farm payrolls, interest rates, ...). They are released quite often and will have a strong, fast impact in the short term, significantly detrimental to short-term trades.

Because of the above reasons, although day traders have spent a lot of time and enthusiasm for this type of trading, profit is still something very "luxury" for them.

So is there any way to improve performance if still opting for day trading?

Moving up to higher timeframes, longer trades, fewer orders for better results. But if you have read and recognized/felt the above disadvantages to day trading but still want to follow this type of trading, here are a few tips to help improve your trading results:

Consult information from larger timeframes!

A common mistake that short-term traders make is that they only take information on 1 chart to trade, such as the 1 '- 5' - or 15 'chart, and make trading decisions. based only on that chart.

One approach that can help you improve your performance is to look at price information on larger timeframes, such as 1 hour or 4-hour charts, then follow the trends at these frames. or look for important resistance zones on these frames.


Trade around key support/resistance levels

Another way to improve performance is to trade around key support and resistance levels. This could be a psychological resistance or a "respected" price zone on larger timeframes.

These major supportive resistance zones will usually be followed by a strong-fast breakout/reversal, which creates strong trends on the smaller frame.

Trade according to profitable signal providers

If, after all of the above, you still cannot make money with day trading, choose one last solution: Find a reliable signal provider.

There are many platforms to help you do this, take some time, and learn, of course, this service is not always profitable but there is the fact that ranked traders will. have better trading performance than you.