The term day trading is an umbrella term that covers trading in many markets, buying and selling the risks of assets on a day to day basis. As a daytrader you will have to act fast and strategically and read some of the most fast moving markets. Some of the most popular day trading choices is Forex or cryptocurrencies, because of the frequency of rises and falls in value is so high over a single day. Therefore, by opening and closing many trades in a single day you can profit from the highly fluctuating nature of these markets. The duration of the trades made by day traders can be down to seconds and mostly maximum hours.
In day trading it is very common to do technical analysis of the assets value charts. It is hard for anybody to predict the future, but the theory of these analyses that are often used is, by using data from the past and present, you can make very qualified guesses about future movements.
Choosing a platform
Day trading is done online through one of the many platforms that are out there. It is very important to pick a trustworthy one. You will have to check, first of all are they regulated and second what is the reputation of the agency that regulates the given platform.
You also want a platform with top notch execution speed. As stated above day trading depends a lot on making many trades over short time, so the execution time of trades is crucial.
Choosing a market
Choosing a market has a lot to do with your knowledge base and temperament. Here are a few examples of the markets to enter;
A preferred market for many of the world’s daytraders. Due to the vast variety of currency pairs and the incomparable liquidity of the forex market, the opportunities are many. There is no central currency market of any kind, which means trades can flow freely around the clock.
For the traders who is riding the modern wave. This market has attracted a whole lot of traders lately, both old and new. Crypos are not generally traded on all platforms, so if you want to trade in this particular market, choose your broker with care.
The binary option excels in being very straight forward. You have a determined timeframe and you know exactly what you get out of the trade, if successful. Binary is great for the trader who is new to day trading, because of the low difficulty nature of the instrument.
You will also find markets where to trade in commodities, futures and stocks. These will be traded by most platforms and can be also be used to turn a great profit.
Day trading takes a lot of time and requires you to use the time to understand both markets and analytical tools, but once you get it there is a good buck to be made.