The Easiest Day Trading Strategy for Beginners

Day trading can feel overwhelming, especially when you’re just getting started. But there’s one strategy I use that I believe is the easiest day trading strategy for beginners. I call it, the Highest Volume Day Strategy (HVD). Whether you’re a seasoned trader or a complete beginner, this strategy is a great way to get started with small cap stocks without all the fast paced decision making.

Before jumping into any strategy, it’s essential to see how it performs. Many educators won’t show the full performance of their strategies, which can leave you guessing about how well they actually work over time. But I believe in full transparency, which is why I post the performance of my strategies every month. I want you to know what to expect from my strategies.

For instance, take a look at February 2025’s stats, which are part of the data I’ve been tracking since 2020. But here’s the important takeaway: of the 24 trades I took that month, 18 of them followed this specific strategy I’m about to explain.

Overview

This small cap strategy is beginner friendly and focuses on quality, not quantity. It’s a great example of why I believe it’s the easiest day trading strategy for beginners. You won’t be chasing momentum or engaging in rapid scalping. The setup typically appears only a few times a week, and when it does, it’s usually a “one and done” trade. The goal is simple: predict the stock’s maximum potential and capture the majority of the move in a single trade.

Stock Selection

The first thing I do before the market opens is look at my premarket scanners, which searches for stocks with a market cap of less than 3 billion shares and has at least 1 million shares of volume in premarket. But volume alone isn’t enough. I also check the stock’s daily chart to make sure that the premarket volume is higher than any of the stock’s previous trading days.

For example, if a stock has a highest volume day of 600,000 shares but is showing 4 million shares in premarket, it’s a go. But if a stock’s highest volume day is 30 million shares and premarket volume is only 2 million, then it’s a no-go.

Identifying Major Consolidation

Next, I look for a strong initial move in the premarket followed by a major consolidation. Consolidation refers to when the stock price moves sideways in a range. If the stock shows more than one major consolidation, I move on to another candidate.

Marking Key Levels

Once I identify the consolidation, I mark two key levels:

• Last Point of Resistance: The premarket high
• Support: The bottom of the consolidation range

Setting Targets

I use three different target strategies for each trade. Personally, I aim to sell at target #2 or #3, but here’s the breakdown:

• Target #1: A 5% gain from my entry point (this is ideal for quick scalping)
• Target #2: Add the premarket range (the difference between the high and low during consolidation) to the premarket high. For example:
  • Premarket high = $2.50
  • Bottom of consolidation = $2.00
  • Premarket range = $0.50
  • Target #2 = $2.50 + $0.50 = $3.00
• Target #3: Double the size of the premarket range and add to the premarket high. Using the same example:
  • Target #3 = $2.50 + $1.00 = $3.50
    *I rarely sell at target #3 unless the market is super hot. I mostly track the statistics of this target being met to gauge how strong the market is. If the #3 target is being hit many times in a given period, then I know we are in a strong market and I should be aiming for this larger target more often.

I only enter into the trade if the price crosses the premarket high during the regular market session. To start, I use a wider stop loss, typically aiming for a risk-to-reward ratio (R:R) of 1:1 or 1:1.5. If the trade starts to go my way and more confirmation builds, I may add to the position using any of my trusted confirmation patterns and adjust my stop loss for a better risk/reward ratio. I always risk the same amount on each trade and I calculate my position size accordingly. You can learn how to do that in this video. 

Patience and Discipline

This strategy doesn’t require quick decision making like most other small cap strategies. That’s why I consider it the easiest day trading strategy for beginners. In fact, I often know hours in advance exactly where I’ll buy and sell. The setup isn’t available every day, so patience is key. You’ll need the discipline to wait for the right setup and hold the position until it reaches the bigger targets.

Want to See This Strategy in Action?

If you’d like to see my watch list of stocks that meet this strategy’s criteria, watch me trade them live, and learn about my other proven successful strategies, join 1215 University. Inside, I break down each trade in real time, explaining my decisions, risk management, and execution making the easiest day trading strategy for beginners even easier.