Day trades

In one sentence

A day trade is opened and closed on the same day, so nothing is held overnight.

Why it matters

Day trading is our main style. It is also high risk. Prices move fast, and a small move can mean a big gain or loss.

Sage trades US stocks and futures this way. Futures are contracts that move with a market, like the S&P 500. A small price move in futures can mean a big gain or loss. His public trade log account (Robinhood) is mostly leveraged ETFs. These are funds that try to move two or three times as much as the market in a day. That makes gains and losses bigger. They reset each day and can lose value over time.

Do this

1. Learn the steps of the Sage Trading System first. It is how Sage picks day trades.
2. Before you enter, write down three prices: where you get in, where you get out if wrong (the stop), and where you take profit (the target).
3. Only take the trade if the target is about three times as far as the stop. See Is the trade worth it?.
4. Risk only a small part of your account on one trade. See Position size in plain numbers.
5. Close the trade before the day ends. Do not turn it into a long hold.
6. After a few losses in one day, stop for the day. See The STS rules.

Real example

Sage's futures day trades post in the Pro futures channels. Their results aren't on our public record yet. The day trades on the public trade log are his stock and ETF trades.

Day trades are fast, so the best example is a live one. Read How to read a trade post first. Then watch the posts as they happen, and compare each one with the STS steps.

Common mistakes

• Trading with no stop. One bad trade can wipe out a week of gains.
• Chasing a move that already happened. If you are late, wait for the next setup.
• Trading too big. Leveraged funds and futures move fast. Start small.
• Trading all day because you are bored. Some days have no good setups. Sitting out is a choice too.