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Day Trading Stocks Canada Introduction and All You Need To Know

The stock trading that we have today and that of a few years ago are of two completely different leagues. While in the older times the brokers were available over their phones, things have changed a lot while still keeping people tied to their phones for trading. However, now different countries and regions have different rules and regulations regarding trading.

This is the reason a lot of people ask about day trading stocks Canada rules and regulations. If you also want to know everything about day trading stocks, then you are at the right place.

Best Canadian Day Trading Stock Brokers

What are day trading stocks?

Trading is something that refers to buying and selling of a product. When we talk about stock trading it involves buying and selling stocks. Well, just add a day to trading stocks to make it day trading stocks, and the meaning will somewhat change. Day trading stocks means to buy or sell stocks within a day, but it is done considering the price fluctuations within that day.

day trading stocks in Canada

The main goal of the traders here is to buy low and sell high. A common practice is to buy in huge volume and sell when the price increases within that day. Day trading stocks Canada is both interesting and attractive because it needs experience and knowledge but on top of everything it needs a lot of luck with nerves of steel because there is high risk.

So, day trading stocks can make you or break you, but it is pretty much in your hands.

Different day trading strategies that you need to know about

The basic methodology of day trading strategies is about one group of people being right while one being wrong. Some say that the price of a stock will increase through the day while others will say that the price of the stock will decrease.

However, only one of them can be right and the following are all the common strategies for day trading stocks. People use these in the hope that they are on the right side.

1. Range Trading

Range trading works on a specific range considering the volume of charts and price. These things can help in the identification of the highs and lows. So, the traders can use this information to buy their stocks low and sell them for a higher price.

2. Trend Following

Trend following includes buying stocks when the price trends are going up and selling in the opposite case. With the price movements continuing the traders can earn well in this way.

3. News Trading

News trading is the day trading technique where the traders do not get any help from the price stats. They look for important things in the news that are then used to identify if buying stocks in that company will be beneficial or not. It is the most traditional trading strategy that sometimes even works on industry rumors.

4. Contrarian Investing

It is the technique where the traders go against popular opinion. It has a high risk as the trader will believe that going against the trends is going to be beneficial.

5. Price Action

This trading strategy focuses on price trends. A trader can see the trends and decide about buying or selling trades. It highly relies on experience and knowledge.

6. Scalping

Scalping refers to a strategy where the smallest profits are prioritized. So, whenever there is a little profit, the trader sells stocks without waiting for bigger profits.

7. Chart Patterns

The price trends can be represented graphically. A trader can analyze the trends from the graphs and then can decide whether to buy or sell stocks

8. Technical Analysis

Technical analysis involves using technical knowledge and experience. By using the information, the trader buys or sells stocks. Most of the time this strategy works but sometimes the trader has to face setbacks.

Day trading stocks order types

The benefit of the internet and technology for day trading stocks Canada is that the whole thing is now very easy. All a trader needs to do is to execute an order online. Any broker account can help in this regard and the following are the options to do with.

Limit Order

This is the order type where you can set the selling and buying limits. So, the order will not complete as long as the limit of the order reaches.

Stop Order

Stop order involves buying or selling a stock at a specific price. It is known as the stop order but when the specific price meets the order becomes a market order.

Market Order

The best order type is the market order. It can provide you with the best buying or selling price in the market.

The right amount to start day trading stocks Canada with

A clear concept is that bigger investments come with bigger profits. However, a major factor to consider is the risk factor. So, instead of starting trading with a huge amount, it is the best choice to start with the 1% of your account balance.

In this way, the loss will not be as large. At the same time, another important thing is the minimum trading limit for different trading options. So, the best way is to use the minimum amount possible to gain experience and then use the experience to win big.

Are there any risks to day trading stocks Canada?

Yes, risks are everywhere and where there is short-term success the risk factor increases a lot. However, if you make every decision after complete thinking and analysis then you can make the best decision.

It is also the best way to stay safe by taking the help of understanding what you are doing and backing your decisions up with experience, research, and knowledge.

The best alternatives to day trading stocks Canada

If you think that the risk for day trading is too much, then you need to understand that success does not come overnight. Every method that comes with quick earning opportunities comes with a high risk of losing all as well. So, instead of looking for alternatives, you must be looking forward to making a stronger profile.


Day trading stocks can be your pathway towards the success that you need. At the same time, it can be the reason for you to lose everything. With all of the information provided here, you need to always play it safe. In this way, the profit might not be the highest, but you will never face huge losses.