What is day trader's strategy?

Paul Nawrocki
Jul 29
2 min read

What Is a Day Trader's Strategy?

A day trader’s strategy is a predefined plan or set of rules that guide every trade during the day. It tells you when to enter, when to exit, how much to risk, and what setups to look for.

Think of it as your battle plan in a fast-moving market.

Without a strategy, a trader is just gambling — reacting emotionally, overtrading, or chasing losses. That leads to inconsistent results, blown-up accounts, and burnout.

Why You Need a Strategy

Consistency: You trade based on logic, not emotion.
Risk control: You avoid massive losses by sticking to rules.
Clarity: You know exactly what to look for in the market.
Edge: You’re not guessing — you’re executing a tested plan.

What Happens Without a Strategy?

You take random trades.
You panic in volatile moves.
You cut winners too early or hold losers too long.
You blame the market instead of reviewing your decisions.

10 Commandments of a Day Trader’s Strategy

Thou shalt stick to thy setup — No signal = no trade.
Thou shalt cut losses quickly — Use stop-loss, no mercy.
Thou shalt ride winners wisely — Let winners work, scale out smartly.
Thou shalt never revenge trade — Market doesn’t care about your feelings.
Thou shalt protect capital — Defense first, profit second.
Thou shalt size trades according to risk — Not greed.
Thou shalt trade only when focused — No stress, no FOMO.
Thou shalt journal all trades — Learn, don’t repeat mistakes.
Thou shalt not chase moves — Missed it? Wait for the next.
Thou shalt respect the plan — Strategy over impulse, always.

Examples of Day Trading Strategies

Gap and Go: Buy at the open if a stock gaps up on strong news and breaks premarket high.
VWAP Reclaim: Buy when price drops below VWAP and reclaims it with volume.
Opening Range Breakout: Enter when price breaks the high of the first 5-minute candle.
Fade the Gap: Short a gap up if it shows weakness at resistance.

Each of these requires entry rules, stop-loss level, and profit targets.