6 Best Day Trading Strategies in Nigeria
The 6 Best Day Trading Strategies in Nigeria revealed. We tested and verified the best day trading strategies for Nigerian Traders.
This is a complete list of day trading strategies in Nigeria.
In this in-depth guide you’ll learn:
- What is a day trading strategy?
- Which brokers offer day trading strategies to Nigerian traders?
- Our six recommended day trading strategies for Nigerian Beginner Traders?
- How to compare day trading strategies against each other?
- What are forex day trading strategy patterns in Nigeria?
- A cheat sheet to day trading strategies.
- What are day trading pattern rules?
- Which broker offers a low minimum deposit on Naira Accounts?
- Which brokers offer a signup bonus for first-time traders?
And lots more…
So if you’re ready to go “all in” with the best day trading strategies for Nigerians…
Let’s dive right in…
- Louis Schoeman
What is a Day Trading Strategy?
👉 Definition: Day trading usually refers to the practice of purchasing and selling a security within a single trading day. It can occur in any marketplace but is most common in the foreign exchange (forex) and stock markets.
6 Best Day Trading Strategies in Nigeria (Updated 2023) – Comparison
| 🥇 Broker | ✔️ Day Trading Strategies Offered? | 💸 Minimum Deposit (₦) | ✔️ Nigerian Naira-based Account? | 💰 NGN Deposits Allowed? | 👉 Open An Account |
| 1. Admirals | Yes | 400 Naira | No | Yes | Open Account |
| 2. Tickmill | Yes | 41,500 Naira | No | No, only USD, GBP, EUR, IDR, CNY, VND, or RUB | Open Account |
| 3. HFM | Yes | 2,000 Naira | Yes | Yes | Open Account |
6 Best Day Trading Strategies in Nigeria (Updated 2023)
1. The trend trading strategy
👉 Trend traders try to make a profit by studying the direction of asset prices, and then buying or selling depending on which direction the trend is moving.
👉 If the trend is heading upwards, with prices making a progression of increasing highs, then trend traders would take a long position and buy the asset. If the trend is moving downwards, with prices making a progression of increasing low, then traders would take a short position by selling.
👉 Trend trading isn’t only used by day traders because you can keep your position open for as long as the trend continues, and so it can be applied to a variety of other trading approaches.
👉 The difference when trend trading on the intraday markets is that the day traders would close this longer position before the day is over.
2. The trend trading strategy
👉 Trend traders try to make a profit by studying the direction of asset prices, and then buying or selling depending on which direction the trend is moving.
👉 If the trend is heading upwards, with prices making a progression of increasing highs, then trend traders would take a long position and buy the asset. If the trend is moving downwards, with prices making a progression of increasing low, then traders would take a short position by selling.
👉 Trend trading isn’t only used by day traders because you can keep your position open for as long as the trend continues, and so it can be applied to a variety of other trading approaches.
👉 The difference when trend trading on the intraday markets is that the day traders would close this longer position before the day is over.
3. The trend trading strategy
👉 Trend traders try to make a profit by studying the direction of asset prices, and then buying or selling depending on which direction the trend is moving.
👉 If the trend is heading upwards, with prices making a progression of increasing highs, then trend traders would take a long position and buy the asset. If the trend is moving downwards, with prices making a progression of increasing low, then traders would take a short position by selling.
👉 Trend trading isn’t only used by day traders because you can keep your position open for as long as the trend continues, and so it can be applied to a variety of other trading approaches.
👉 The difference when trend trading on the intraday markets is that the day traders would close this longer position before the day is over.
4. The scalping strategy
👉 Scalping is a short-term trading strategy that takes incremental but frequent profits. The point of scalping is to focus on a high win rate, based on the idea that a large trading account can be steadily built by taking smaller profits many times over, and that this can be done at the same degree as a traders who places fewer traders on larger profit wins over the long-run.
👉 Scalping makes use of a very strict exit strategy as losses can very quickly counteract any profits already built up in the account.
👉 It is also important to note that most scalpers will close positions before the end of the day, because the smaller profit margins from each trade will quickly get eroded by overnight funding charges.
5. The mean reversion strategy
👉 Mean reversion strategy is premised on the notion that prices is based on the theory that prices, and in fact other measures of value such as price-to-earnings (P/E) ratios, always eventually move back towards the historical mean.
👉 To this end, the mean reversion strategy makes heavy use of technical analysis, which include indicators like moving averages, to pin-point assets whose recent performance has differed considerably from their historical average.
👉 Mean reversion traders will then wait to take advantage of the price returning to their normal asset trajectory.
6. The money flow strategy
👉 The money flow strategy makes use of a tool called the money flow indicator, which signals whether an asset might be oversold or overbought – using volume and price rather than the asset’s price alone.
👉 This strategy focuses on comparisons between the number of trades from the previous day to the current day, to determine whether the money flow was positive or negative.
👉 Overbought conditions are indicated by a reading of 80 or higher, which signals the trader to exit the position. In contrast, a reading of 20 or lower indicates oversold market conditions and is a buy signal.
Best Trading Platforms for Day Trading Strategies
1. Admirals
Overall Rating
- 4.1/5
Total Pairs
35 Forex Currency Pairs
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 Day trading doesn’t require a large investment to get started, and Nigerian traders may start with as little as $100 with Admirals.
👉 Admirals has 47 different currency pairings for Nigerian traders to choose from. Aside from its own social trading platform, the company offers a wide choice of additional trading possibilities. All-in costs for EUR/USD trades average 0.6, with the average spread being 0.06.
Unique Features
| Feature | Information |
| ⚖️ Regulation | FCA, ASIC, CySEC, EFSA, JSC |
| 📲 Social Media Platforms | • YouTube • Telegram |
| ⚖️ CBN Regulation? | No |
| 💻 Trading Accounts | Trade.MT5, Invest.MT5, Zero.MT5, Bets.MT5, Trade.MT4, Zero.MT4 |
| 📱 Trading Platform | MetaTrader 4, MetaTrader 5, Admirals Mobile App |
| 💵 Minimum Deposit (₦) | 400 Naira |
| 💳 Trading Assets | ESG Trading Instruments, Forex, Cryptocurrency CFDs, Commodities, Indices, Stocks, ETFs, Bonds, Spread Betting |
| ✔️ Nigerian Naira-based Account? | No |
| 💸 NGN Deposits Allowed? | Yes |
| 💰 Bonuses for Nigerian traders? | No |
| 📊 Minimum spread | From 0.0 pips EUR/USD |
| ✔️ Demo Account | Yes |
| ☪️ Islamic Account | Yes |
| ✔️ Pros | ❌ Cons |
| Admirals is well-regulated in several regions globally | There is an inactivity fee charged |
| Admirals offers commission-free options | Nigerian traders are subject to currency conversion fees |
| The broker accepts Nigerian traders despite their trading skills or trading strategies | There are deposit and withdrawal fees charged |
| There are user-friendly platforms available across devices | There are admin fees charged on the Islamic account |
| There is a wide range of tradable markets, complex instruments, and leveraged products | There is only one account type that can be converted to an Islamic Account |
| Admirals offers the MetaTrader Supreme Edition | |
| Traders are given access to premium analytics | |
| There are several educational materials, resources, and tools offered |
Trust Score and Nigerian Market Share
🥇 Admirals has a trust score of 83% and a market share of <5% in Nigeria.
2. Tickmill
Overall Rating
- 4.7/5
Total Pairs
62
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 Despite its relative newness on the Forex markets, Tickmill has already earned a solid reputation among Nigerian investors and traders alike. There are numerous tools available to you through Tickmill, including forex dray trading alternatives.
👉 Third-party solutions are also supported by Tickmill’s own web platform. MetaTrader 5 users can still access their Tickmill accounts via MetaTrader 4 despite the lack of support for MetaTrader 5. ZuluTrade assistance and the platform’s own desktop program are also included for Nigerian traders.
Unique Features
| Feature | Information |
| ⚖️ Regulation | Seychelles FSA, FCA, CySEC, Labuan FSA, FSCA |
| 📲 Social Media Platforms | • Facebook • YouTube • Telegram |
| ⚖️ CBN Regulation? | No |
| 💻 Trading Accounts | Pro Account, Classic Account, VIP Account |
| 📱 Trading Platform | MetaTrader 4, MetaTrader 5 |
| 💳 Minimum Deposit (₦) | 41,500 Naira |
| 💵 Trading Assets | Forex, Stock Indices, Energies, Precious Metals, Bonds, Cryptocurrencies |
| 📱 Nigerian Naira-based Account? | No |
| ✔️ NGN Deposits Allowed? | No, only USD, GBP, EUR, IDR, CNY, VND, or RUB |
| 💸 Bonuses for Nigerian traders? | Yes |
| 📊 Minimum spread | 0.8 pips |
| 💻 Demo Account | Yes |
| ☪️ Islamic Account | Yes |
| ✔️ Pros | ❌ Cons |
| Tickmill offers robust trading platforms and innovative mobile trading | Currency conversion fees will apply for Naira deposits |
| Tickmill has a very high trust score and is known for its competitive trading conditions | There are no fixed spread accounts offered |
| There are several convenient funding options available including Skrill, Neteller, and others | The spreads are not the tightest |
| Advanced traders can use a range of tools including FIX API, AutoChartist, VPS, and others |
Trust Score and Nigerian Market Share
🥇 Tickmill has a trust score of 81% and an overall market share of <5% in Nigeria.
3. HFM
Overall Rating
- 4.8/5
Min Deposit
USD 0 / 0 NGN
Regulators
FSCA, CMA, CySEC, DFSA, FSA
Trading Desk
MetaTrader 4, MetaTrader 5, HFM Trading App
Crypto
No
Total Pairs
50+
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
Overview
👉 HFM offers six different trading accounts to Nigerian traders. Additionally, there is a 1:1000 leverage and the possibility to activate a bonus for trading. A wide selection of trading choices and excellent customer service are provided by HFM for Nigerian traders.
Unique Features
| Feature | Value |
| 💰 Minimum Deposit | 2,000 Naira or an equivalent to $5 |
| 💵 Maximum Deposit | Unlimited |
| 💳 Account Base Currencies | USD, ZAR, NGN |
| 📊 Max Leverage Ratio | 1:1000 |
| ✔️ Naira Deposits Allowed? | Yes |
| 💸 Offers a Naria Account? | Yes |
| 📞 Nigerian Customer Support? | Yes |
| 💻 Account Types | Micro Account, Premium Account, HFcopy Account, Zero Spread Account, Auto Account |
| 📱 Trading Assets | Forex, Precious Metals, Energies, Indices, Shares, Commodities, Cryptocurrencies, Bonds, Stocks DMA, ETFs |
| ✔️ Negative Balance Protection? | Yes |
| 💰 Margin Call | Between 40% to 50% |
| 🛑 Stop-Out | Between 10% to 20% |
| 📉 Minimum Trade Size | 0.01 lots |
| ✔️ Pros | ❌ Cons |
| There are tight, competitive spreads from 0.0 pips on EUR/USD | HFM only offers a few deposit and withdrawal methods to Nigerians |
| There is a demo account for beginners who are learning to trade and professional traders who are testing strategies | |
| Nigerian traders can register a trading account in either USD, ZAR, or NGN | |
| Several asset classes can be traded through HFM | |
| Nigerian traders have access to MetaTrader 4 and 5 across desktops, mobile apps, and web-based platforms |
Trust Score and Nigerian Market Share
🥇 HFM has a trust score of 83% and a Nigerian market share of 2.5%.
Overview
👉 If you’re looking to make money quickly in Nigeria, day trading is an excellent option. Buying and selling currencies on the foreign exchange market in a single trading day is the basis of this popular strategy.
👉 Positions are closed at the end of each day and new ones are opened the next. Forex day traders purchase and sell currency pairs numerous times a day to take advantage of modest market fluctuations.
👉 Day trading, which is also known as intra-day trading, is not for the casual investor in Nigeria because it takes a significant investment of time, attention, devotion, and a particular frame of mind.
Top 10 Brokers in Nigeria
Broker
Rating
Regulators
Min Deposit
Leverage
Sign Up Bonus
Spreads
Website
Top 10 Brokers
Broker
Deposit
Leverage
Website
👉 In this comprehensive article we take a deep dive into the most important aspects of day trading strategies which Nigerian traders should know to help them make the best of their Forex trading journey.
Things to consider when day trading
👉 It is possible to make a good living by day trading (as long as you do it properly). However, it can be difficult for newcomers, particularly those without a well-thought-out strategy. Even the most experienced day traders have their share of setbacks.
👉 Before you start day trading forex, or any other market, you need think about a few crucial aspect, as this strategy takes more time to master than a standard buy and hold strategy.
👉 When it comes to long-term investments, everyday fluctuations in the market have minimal impact on the overall picture. But when it comes to day trading, the focus is on the market’s day-to-day movements. Among them include:
➡️ Liquidity: The ease with which and how fast positions can be entered and abandoned determines the liquidity of a market. Because day traders are likely to be making several deals throughout the day, having a lot of liquidity is essential for them to be successful.
➡️ Market volatility: For day traders, the volatility of an asset, or the rate at which the price changes, is an important factor to consider. If there is projected to be a lot of volatility during the day, the fluctuations can generate a lot of opportunities for short-term profits.
➡️ Trade volume: The trade volume of an asset is a measure of how many times it has been purchased or sold in a specific period of time. A large trade volume indicates that there is a great deal of interest, and it is important for determining entry and exit points in a market.
Understanding the day trader
👉 Day traders keep a close eye events that cause short-term market changes, and for this reason fundamental analysis (which is monitoring news events) is a popular approach amongst day traders.
👉 Scheduled announcements such as economic statistics, business earnings, or interest rates are vulnerable to market expectations and market psychology.
👉 Markets react when those expectations are not realized or are exceeded—usually with fast, large moves—which can greatly benefit day traders.
👉 As such, most day traders have a few techniques and tools in their arsenal that allow them to make the most of these market movements. These include:
Sufficient market education
👉 The majority of the time, those who attempt to day trade without a firm grasp of market fundamentals end up losing their hard-earned cash. Technical analysis and chart reading are both useful skills for day traders.
👉 If you don’t have an in-depth knowledge of the market and its particular hazards, charts can be misleading. Make sure you know everything there is to know about the currencies on which you are speculating.
Enough investment capital
👉 Day traders use make sure that they only invest capital which they can afford to lose. This not only guards them from unnecessary financial loss but also takes out a major emotional factor from their decision-making: and emotion can wreak serious havoc on your trading decisions.
👉 As such, day trading requires a higher level of capital in order to make the most out of intraday market movements. There, ensuring that you have enough capital to play these market changes well is important.
👉 This is particularly true for the fact that day trading relies on a high level of leverage in margin accounts, and volatile market swings can trigger big margin calls on short notice.
A disciplined approach
👉 Even the best trading strategy will be ineffective without a disciplined approach. Many day traders end up losing money because they make trading decisions that are not in their best interest due to the effects of emotion.
👉 As already noted, in order to ensure consisted profits, day traders have to make use of high market volatility. A day trader may find a currency or stock to be a good bet if it moves heavily throughout the same day.
👉 These movements could be triggered by several different factors, including an earnings report, investor sentiment, or even general economic or company news.
👉 Day traders also tend to look for assets that show high liquidity, as this liquidity allows them to change their position without altering the price of the stock. If a stock price moves higher, traders might decide to assume a buy position. If the price moves down, day traders could choose to sell short as they can profit when it falls.
A sound day trading strategy
👉 Having a well-thought out and back-tested day trading strategy gives a trader an edge over the other market participants.
👉 Day traders employ a variety of different strategies, which we will discuss later in this article, and work to adjust and fine-tune these strategies until they work for their own investment and trading goals.
How to start out with day trading
👉 The first thing that a new day trader should consider is their risk tolerance level. Those with a higher risk appetite will be able to make more measured and rational decisions during the high volatility sessions associated with intraday trading.
👉 Regardless of your risk tolerance, even traders with a high risk appetite should develop a trading strategy that will allow them to trade the markets with a set of criteria or parameters that will allow them to make the best decisions.
👉 Then, it is very important to test out these strategies before using them in live market conditions. Back-testing in a trading simulator or using a demo account are both great ways to test out trading strategies in a risk-free way.
👉 Day trading strategies require that the trader makes several decisions over a short time span, which is why many day traders make use of technical analysis indicators to help them make informed decisions on a short-term basis.
How to Choose a Forex Broker
👉 Nigerian traders must evaluate the following components of a forex broker to decide whether the broker is suited to their unique trading objectives and/or needs.
Regulations and Licenses
👉 This is the first important component that traders must thoroughly evaluate. Reputable brokers are regulated by market regulators such as FCA, ASIC, CySEC, FSCA, and others. Nigerians must beware when dealing with brokers that only have offshore regulations such as FSA, SVG BVI, FSC, and others.
Account Features
👉 Account Features include leverage trading and margin requirement, commissions and spreads, initial deposit, additional features on retail investor accounts, and so on.
Deposits and Withdrawals
👉 Nigerians must evaluate the payment options available, the processing times on withdrawal requests, deposit currencies offered, the withdrawal fee, deposit fees, and minimum withdrawal limits among other trading and non-trading fees.
Range of Markets
👉 The range of markets offered refers to the number and range of tradable instruments that the broker offers. Nigerians must consider what they wish to trade and what is available.
Customer Support
👉 Customer Support is another crucial factor and Nigerians must check the availability of support (trading hours), the quality of support, and the promptness with which the customer support team responds to queries.
Trading Platform
👉 A trading platform is the Nigerian trader’s portal to the financial markets. Traders must ensure that the trading platform has the necessary technical indicators, fundamental analysis, technical analysis, economic calendar, charting, newsfeed, and other tools they may need.
Education and Research
👉 Education and Research come in handy to both novice traders and experienced investors. Education includes some of the following:
➡️ eBooks
➡️ Trading guides
➡️ Trading knowledge on leveraged products
➡️ A risk warning on complex instruments
➡️ Educational videos
👉 Research can include some of the following:
➡️ Trading tools
➡️ Commentary
➡️ Status of International Markets
➡️ Price movements
➡️ Market sentiments
➡️ Whether there is a volatile market
➡️ Exchange Rates
➡️ Expert opinions and several other resources can help experienced traders make informed trading decisions.
The Best Forex Brokers in Nigeria
👉 In this comprehensive analysis we have listed the best Forex brokers or Nigerian day traders. Of these brokers, we have further identified the forex brokers that offer additional services and solutions to Nigerian traders.
Best Forex Broker for beginner day traders in Nigeria
Overall Rating
- 4.1/5
Min Deposit
400 Nigerian Naira equivalent to $1
Regulators
FCA, ASIC, CySEC, EFSA, JSC
Trading Desk
• MetaTrader 4
• MetaTrader 5
• Admirals Mobile App
Crypto
Yes
Total Pairs
35 Forex Currency Pairs
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, Admirals is considered a low-risk broker and can be summarised as a trustworthy and reliable ECN broker for day trading in Nigeria. Regarding spread and security, Admirals guarantees fast trading speeds from a few milliseconds when day trading in Nigeria. In terms of users, Admirals has over 7 million registered traders.
Best Forex broker with NGN-based accounts for Nigerian day traders
Overall Rating
- 4.8/5
Min Deposit
USD 0 / 0 NGN
Regulators
FSCA, CMA, CySEC, DFSA, FSA
Trading Desk
MetaTrader 4, MetaTrader 5, HFM Trading App
Crypto
No
Total Pairs
50+
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, HFM is considered a low-risk broker and can be summarised as a trustworthy and reliable ECN broker for day trading in Nigeria. Regarding spread and security, HFM guarantees fast trading speeds from a few milliseconds when day trading in Nigeria. In terms of users, HFM has over 2.5 million registered clients around the world.
Best MT4 Forex broker for Nigerian day traders
Overall Rating
- 4.7/5
Min Deposit
USD 100 / 41450 NGN
Regulators
CySEC, FCA, FSA, FSCA, Labuan FSA
Trading Desk
Meta Trader 4
Crypto
Yes
Total Pairs
62
Islamic Account
Yes
Trading Fees
Low
Account Activation Time
24 Hours
👉 Overall, Tickmill is considered a low-risk broker and can be summarised as a trustworthy and reliable ECN broker for day trading in Nigeria. Regarding spread and security, Tickmill guarantees fast trading speeds from a few milliseconds when day trading in Nigeria. In terms of users, Tickmill has over 38 000 registered clients in the UK.
FAQ
What is day trading in Forex?
Buying and selling currencies on the foreign exchange market in a single trading day is the basis of this popular strategy.
Positions are closed at the end of each day and new ones are opened the next. Forex day traders purchase and sell currency pairs numerous times a day to take advantage of modest market fluctuations.
What is the difference between day trading and Forex trading?
Day trading forms part of Forex trading, and is a popular trading technique which allows traders to focus on volatility in a single day. General Forex traders make look at long-term positions and hold them for several days or even weeks.
Does Forex allow day trading?
Yes, the Forex markets allow for a variety of trading strategies, of which day trading is one. It is important, however, that day traders find brokers which provide a good environment for holding short-term positions.
Which type of trading is most profitable?
Any type of trading can be profitable, as long as traders ensure that they have enough market knowledge, use a disciplined approach, adopt a sound trading strategy and sign up with a reputable broker that offers them competitive trading conditions.
What is the most successful Forex day strategy?
Different strategies will work for different traders, and it is crucial that traders of any strategy take the time for back-testing or practicing in a demo account. The best day trading strategies for beginners are considered to be the following:
- Trend trading
- Swing trading
- Scalping
- Mean reversion
- Money flow
Addendum/Disclosure:
👉 No matter how diligently we strive to maintain accuracy, the forex market is a volatile environment that may change at any time, even if the information supplied is correct at the time of going live.
Top 3 Brokers
