Easy Daytrading RobinHood Strategy [2024]

Remember when making money in the stock market meant you needed deep knowledge of complex trading patterns and expensive desktop trading platforms to even get started?

Those days are long gone thanks to modern technology and an easy daytrading RobinHood strategy that can be used directly from mobile trading Apps.

Trading Apps like Robinhood have revolutionized stock trading by making it accessible to everyone with just a smartphone and $25k in trading capital. Trading stocks daily can be profitable when you understand the basic principles (though success isn’t guaranteed).

While many beginner traders are drawn to the allure of quick profits through day trading on Robinhood, most end up losing money without proper education.

The good news is that anyone can learn an easy daytrading Robinhood strategy needed for consistent profits.

So, how can you get started today?

See below…

How to Day Trade on RobinHood? 

Day trading stocks comes with its own set of rules and guidelines, aimed at ensuring trader safety and market stability. Knowing these rules, such as the pattern day trading rule – PDT rule, is crucial. Robinhood, like all stock brokers, must adhere to the regulatory standards set by bodies like FINRA and the SEC.

Pattern Day Trading Rule 

The Financial Industry Regulatory Authority (FINRA) mandates that traders using margin accounts keep a minimum balance of $25k if they make four or more day trades within five business days. Falling below this threshold triggers a ‘Pattern Day Trader’ (PDT) flag which can restrict your trading options.

The Pattern Day Trading rule affects traders who complete four or more day trades within five business days. If you’re identified as a PDT, maintaining a minimum of $25k in your margin account is necessary. Day trading stocks with less than $25k is possible but requires careful planning and a strategic mindset. However, it’s advantageous to be well-funded because being undercapitalized might push you to take on excessive risks to achieve gains. 

Easy Daytrading RobinHood Strategy for Beginners 

Let me share a proven stock daytrading strategy that works especially well with Robinhood’s trading platform. While the trade setup process is straightforward and takes minutes to learn, practicing this method requires dedication and discipline.

This daytrading RobinHood strategy focuses on low-priced stocks between $5-30 with specific volume criteria and strict risk management rules.

Now, let’s dive in.

Step #1: What Stocks to Day Trade (Scan for stocks between $5-$30)

When looking for stocks to day trade on Robinhood, we want to focus on the sweet spot between $5-$30. Here’s our selection criteria:

• Choose stocks within this price range and stick to trading them regularly, as familiarity with price action improves results.
• Look for pre-market volume above 100k shares.
• Focus on stocks showing strong momentum and clear price trends.

Many stock traders get overwhelmed trying to track too many stocks at once in this price range. Keep it simple. RobinHood‘s built-in screener helps identify these opportunities, though it’s more basic than professional tools.

Trading low-priced stocks requires careful attention to liquidity and volatility to avoid getting stuck in positions. Remember, not every stock in this range is suitable for day trading, even if it meets our basic criteria for best stocks for day trading Robinhood.

Step #2 Explore stocks with high-volume pre-market activity 

When scanning for stocks to trade, focus on those with pre-market volume above 100,000 shares, as this indicates strong trading interest and potential momentum. These stocks typically offer the best opportunities for quick profits during the morning session (which is when we’ll be trading), and they usually maintain good liquidity throughout our targeted trading window.

Stocks showing high activity during pre-market hours are often responding to earnings reports, analyst upgrades, or other significant news catalysts. Pre-market volume above 100,000 shares suggests there’s genuine interest from both retail and institutional traders. This level of activity usually leads to predictable price movements that create opportunities for day traders. Heavy pre-market volume typically results in continued momentum and reliable trading opportunities during regular market hours.

When analyzing pre-market activity, look for:

• Stocks showing strong upward momentum with increasing volume
• Stocks with clear support and resistance levels
• Stocks maintaining consistent trading ranges 

Step #3: Best Time of Day for Day Trading Stocks

For our strategy, waiting until 9:45 AM EST is absolutely crucial. If you’re new to day trading, avoid jumping in right at the market open. The first fifteen minutes are extremely volatile and unpredictable. When I implement this strategy, I focus specifically on the window between 9:45 AM and 10:30 AM EST. This time frame offers the perfect balance of volatility.

Therefore, your sweet spot for entering trades is between 9:45 AM and 10:00 AM EST exclusively. Never trade outside this window with this strategy.

Price action during this period tends to be more predictable and reliable. If you haven’t found any good setups by 10:30 AM, simply wait for the next trading day. There’s no need to force trades. Just sit back, observe the market and learn from watching how stock’s price action moves during this time window.

Step #4: DayTrading Entry and Exit Strategy 

Our RobinHood daytrading strategy relies exclusively on the 1-minute timeframe chart with price breakouts for precise entry and exit timing. This strategy is straightforward and effective. For our daytrading entries we focus on the 15-minute opening price range from 9:45 – 10:00 EST. These specific stock chart patterns guide our trades.

The 15-minute trading range should stand out clearly compared to previous price action. We enter when the price breaks out of this trading range. Price breakouts occur when a stock moves decisively above resistance (high of the 15-minute range) or below support (low of the 15-minute range) levels with increased volume.

For example, if a stock has been trading between $15 and $15.50, and suddenly breaks above $15.50 with strong volume, that’s our entry signal.

The trade setup must align with our strict risk management rules. Every entry must have a clear stop loss and profit target defined before entering. Here’s how we manage that using our 2:1 profit-to-loss ratio.

Managing Risk and Exits

Stop losses are non-negotiable in this strategy. Place your stop loss in the opposite side of the 15-minute trading range that would prove your trade thesis wrong and limit your loss to 1-2% of your trading account.

There are multiple ways to take profits, but for this strategy, we recommend setting a fixed profit target at twice your risk. For example, if risking $0.30 per share, set your profit target at $0.60 above your entry.

The Key Takeaways 

The easy daytrading Robinhood strategy:

• Scan for stocks between $5-$30
• Look for pre-market volume above 100k
• Enter trades between 9:45-10:00 AM EST
• Use the 15-minute trading range to enter
• Use 2:1 profit-to-loss ratio
• Never risk more than 1-2% per trade