Mastering the Art of Day Trading on Robinhood

Day trading has become an increasingly popular way for individuals to engage in the financial markets and potentially generate profits. One platform that has gained significant attention in recent years is Robinhood. Robinhood is a commission-free trading platform that allows users to buy and sell stocks, options, and cryptocurrencies with ease. In this article, we will explore the art of day trading on Robinhood and provide you with the knowledge and tools to become a successful trader on the platform.

Understanding Day Trading

Day trading involves buying and selling financial instruments, such as stocks, within the same trading day with the goal of making profits from short-term price fluctuations. The main objective of day traders is to take advantage of market volatility and capitalize on price movements in a short period of time.

To be successful at day trading, it is important to have a solid understanding of the financial markets, technical analysis, and risk management. Day traders often rely on technical indicators, chart patterns, and trading strategies to identify potential trading opportunities.

Getting Started with Robinhood

If you're new to day trading or Robinhood, getting started on the platform is relatively straightforward. Here are the steps to create an account and start trading:

1. Download the Robinhood app from the App Store or Google Play Store. 2. Sign up with your email address and create a secure password. 3. Complete the verification process by providing your personal information and linking your bank account. 4. Fund your Robinhood account with the desired amount of capital. 5. Familiarize yourself with the Robinhood app and its features, such as the watchlist, portfolio, and trading interface.

Choosing the Right Stocks

When it comes to day trading on Robinhood, selecting the right stocks is crucial. Here are a few factors to consider when choosing stocks for day trading:

1. Liquidity: Look for stocks with high trading volume. Higher volume generally translates to more trading opportunities and tighter bid-ask spreads. 2. Volatility: Volatile stocks tend to exhibit larger price swings, providing more potential for day trading profits. Keep an eye on stocks that have news catalysts or earnings releases that could impact their price. 3. Sector Focus: Some day traders prefer to focus on specific sectors or industries, as they may have a deeper understanding of the underlying dynamics and trends.

It is also important to conduct thorough research and analysis before trading any stock. Keep an eye on company fundamentals, news headlines, and technical indicators to make informed trading decisions.

Utilizing Technical Analysis

Technical analysis is a popular tool used by day traders to analyze price patterns and identify potential trading opportunities. Here are some key technical indicators and chart patterns commonly used in day trading:

1. Moving Averages: Moving averages help identify trends and potential support/resistance levels. The most commonly used moving averages are the 50-day and 200-day moving averages. 2. Relative Strength Index (RSI): The RSI is a momentum oscillator that measures the speed and change of price movements. It helps identify overbought and oversold levels in a stock. 3. Candlestick Patterns: Candlestick patterns, such as doji, engulfing, and hammer, provide insights into market sentiment and potential reversals. 4. Bollinger Bands: Bollinger Bands help identify volatility and potential overbought/oversold levels. They consist of a simple moving average and two standard deviation bands.

By mastering technical analysis techniques, day traders can gain an edge in the markets and make more informed trading decisions.

Developing a Day Trading Strategy

Having a well-defined day trading strategy is crucial for success on Robinhood or any other trading platform. A trading strategy outlines the rules and criteria for entering and exiting trades. Here are a few common day trading strategies:

1. Breakout Strategy: This strategy involves identifying key levels of support or resistance and trading the breakout when the price moves above or below these levels. 2. Scalping Strategy: Scalping involves making quick trades to capture small price movements. Traders using this strategy typically focus on stocks with high volatility and tight bid-ask spreads. 3. Momentum Strategy: Momentum traders look for stocks with significant price momentum and join the trend. This strategy can be effective in trending markets.

It is important to backtest and refine your day trading strategy before risking real capital. Through practice and experience, you can fine-tune your strategy to fit your trading style and risk tolerance.

Managing Risk and Emotions

Risk management and emotional control are key aspects of day trading. Here are some tips to help manage risk and emotions while day trading on Robinhood:

1. Set Stop-Loss Orders: A stop-loss order is an order placed with a broker to sell a stock if it reaches a predetermined price level. This helps limit potential losses and protects your trading capital. 2. Use Proper Position Sizing: Determine your position size based on your risk tolerance and the volatility of the stock. Never risk more than you are willing to lose on a single trade. 3. Have Realistic Expectations: Day trading is not a guaranteed way to make money. It is important to have realistic expectations and understand that losses are a part of the trading process. 4. Control Emotions: Emotions, such as fear and greed, can cloud judgment and lead to irrational trading decisions. Develop discipline and stick to your trading strategy.

By implementing proper risk management techniques and maintaining emotional control, you can enhance your chances of success as a day trader on Robinhood.

Staying Informed and Learning from Others

To master the art of day trading on Robinhood, it is essential to stay informed and continually learn from others. Here are a few ways to expand your knowledge:

1. Follow Financial News: Stay up to date with the latest financial news and market developments. News can impact stock prices and create trading opportunities. 2. Join Trading Communities: Participate in online trading communities, such as forums or social media groups, where you can connect with other traders, share ideas, and learn from their experiences. 3. Read Trading Books and Resources: There are plenty of books and educational resources available that cover various aspects of day trading. Take advantage of these materials to deepen your understanding. 4. Utilize Demo Accounts: Many trading platforms offer demo accounts that allow you to practice trading without risking real money. Use these accounts to test your strategies and gain practical experience.

Remember, learning is a continuous process, and staying informed can help you adapt to changing market conditions and improve your trading skills.


Day trading on Robinhood offers individuals the opportunity to engage in the financial markets and potentially generate profits. By understanding the fundamentals of day trading, utilizing technical analysis, developing a trading strategy, managing risk and emotions, and continuously learning, you can master the art of day trading on Robinhood. However, it is essential to approach day trading with caution, as it involves risks and requires discipline and dedication. With the right knowledge and skills, you can navigate the markets with confidence and increase your chances of success as a day trader on Robinhood.

22 October 2023
Written by John Roche