Are you looking for ways to make some extra cash?

Like day trading as a side hustle.

In this blog post we go over the 5 best day trading patterns to make this side hustle profitable and successful.

Instead of long-term investments, the 5 best patterns we go over here will show you how to take advantage of very simple and beginner friendly patterns to spot and trade.

They’re not gonna work 100% of the time, but time has proven that it’s possible to trade these with success.

So let’s dive into the 5 best patterns to succeed with day trading as a side hustle in 2023:

Day Trading Pattern #1: Morning Panic Dip Buy

This pattern occurs mostly directly after the market open and it offers a great risk to reward.

This day trading pattern is called the morning panic dip buy and it can be pretty effective.

Let’s break it down here:

In the stock market, there are often these moments right after the market open where a stock’s price can drop suddenly, creating a sort of panic among traders.

That’s the “morning panic” part and it works perfectly for you if you want to make day trading work as a side hustle.

Now, what do to then is to wait for the panic to settle down a bit, usually a few minutes after the market opens.

During this time, look for stocks that could have a good chance of bouncing back up in price.

Once you spot a stock that fits the bill, you can buy it at the lower price during this dip.

The idea is that as other traders regain their confidence and start buying again, the stock’s price should rise, allowing you to sell it for a profit.

It’s all about seizing opportunities when others are fearful and staying calm amidst the chaos.

So, that’s the morning panic dip buy strategy in a nutshell.

The trades are very fast so be prepared to buy and sell quickly to not get caught in a follow up panic.

Here’s another morning panic dip buy chart:

Day Trading Pattern #2: Breakout

This pattern is also a great choice if you only trade part-time and are looking into day trading as a side hustle.

You can think of breakouts like a coiled spring that’s been tightly wound for a while.

Suddenly, it can’t stay wound up any longer, so it bursts out in one direction.

That’s kinda what happens in the stock market.

Breakouts occur when a stock or asset’s price has been stuck within a certain range for some time, and then suddenly, it breaks through either the upper or lower boundary of that range.

It’s like a big move that can signal a potential shift in the market.

Traders look out for breakouts because they could mean opportunities to buy low and sell high.

Breakouts can be a bit unpredictable, just like life sometimes.

So, it’s essential to be careful and have a clear trading plan and stop loss before entering into the trade.

If you want to day trade as a side hustle this can be a very good strategy to build your trading account.

In the following chart you can see the resistance line and the breakout on the next day (15 minute chart):

Day Trading Pattern #3: First Red Day

Ok now let’s talk about a bearish day trading pattern known as shorting the first red day.

It’s a strategy where you bet against a stock’s upward trend.

So, when we say “first red day,” we’re talking about a situation where a stock has been steadily going up, and then it has its first down day, which is indicated on the daily chart by a red candlestick after several green up days.

It’s like when you’ve been on a winning streak, and suddenly things take a dip.

Short selling is the opposite of buying and holding.

Instead of hoping a stock goes up, you’re essentially betting it’s going to drop.

Think of it like predicting a rollercoaster is about to head downhill, and you want to ride it down to make a profit.

When you short a stock on its first red day to day trade as a side hustle, you’re basically saying, “I think the good times are over,” and you’re looking to cash in as the price falls.

Here’s how it works: You ask your broker to borrow shares, then you sell them at the current price, say at $10 per share.

Later, when the stock price drops to, let’s say, $6 per share, you buy those borrowed shares back.

The $4 difference per share is your profit.

But keep in mind, while the potential for profit is there, the risk is also significant.

Stock prices can theoretically keep going up indefinitely.

So, it’s crucial to have risk management in place and exit the trade if things aren’t going as expected.

When executed wisely, shorting the first red day can be a valuable tool, especially in the world of day trading as a side hustle in 2023.

Day Trading Pattern #4: Afternoon Breakout

This is very a nice variation to the “normal” Breakout as you can trade this setup very easily if you have a 9-5 job or other commitments and you day trade as a side hustle.

Basically you’re looking for a stock that makes a huge move up in the morning trading hours.

Then as the midday trading hours happen the stock price consolidates or slightly goes down.

When the stock’s holding up in the afternoon and retests the high of the day from the morning you look to enter the trade for a potential move and breakout higher.

This day trading pattern is also known as the ABCD or 2PM VWAP Hold pattern.

Here’s an intraday chart of what the setup looks like for your day trading side hustle:

Day Trading Pattern #5: Breaking News

The last pattern for your side hustle trading journey is the Breaking News play.

If you have a news service that provides stock market news in realtime this can be a very good pattern if you’re looking for fast paced trading/profit potential.

But since this trading pattern requires quick actions it’s also a bit risky.

So make sure to test this out with small size and only trade with money that you’re willing to lose.

When you see a stock has news and/or drops a press release you’re basically looking for a quick spike in the stock’s price.

You can also use Level 2 data to confirm if people are actually aware of the news and want to get in.

When the stock price spikes you’re looking to get out as soon as possible as these spikes can also turn into the other direction very quickly.

This strategy is very good if you’re looking to day trade as a side hustle and want to grow your small account.

Conclusion to the 5 best trading patterns for your day trading side hustle

So there you have it, 5 easy to trade day trading patterns for your day trading side hustle.

Leave us a comment below which pattern you like most or if you have other patterns you like.

The best way to trade these patterns is to start small and scale later as you gain experience and knowledge.

Pick a pattern you like most and start from there to grow your trading side hustle account.

Thanks for reading and see you!

DISCLAIMER: All content on this page is intended for educational and informational purposes only. No trading advice. The article may contain affiliate links, which means that if you click on one of the product links, I’ll receive a commission. This helps support me to maintain this blog. I will never support or push a product I don’t believe in. Thank you for your support!


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