![]() ![]() It is important to manage risk and be cautious when using leverage.Ĭompared to traditional holding stocks over a long period of time, Day Trading provides much more control over outcome. Leverage adds risk and can lead to larger losses also. As a short term trading strategy, leverage is often used to increase the potential return. ![]() Simple principle, do not hold trades in the markets when they are closed.ĭay Trading takes advantage of fluid markets, capitalising on fast price movements. Seek to protect yourself against market dynamics you can never hope to control. As a Day Trader for over 14 years, my suggestion is to follow the same principle. They do this to protect against unexpected news that may rock the markets. It’s recommended that Day Traders should only take high-probability trades.ĭay Traders, don’t hold trades out of market hours, particularly over the weekend. There are two risks in trading, making money and losing money every time you take a trade.Īs a Day Trader, you need to maintain a risk profile and remain disciplined. Be aware that a careless trader can also compound losing trades on a daily basis. This means that there is a potential to compound this return daily and grow capital. Speed of entering and exiting tradesĭay Traders are able to enter and exit trades with speed, intending to lock in trading profits on a daily basis. Positive news such as a large earnings beat, for example, can be a sign that price may move up. They try to predict movement based on market sentiment. Traders use trend lines, support/resistance levels and historic price to predict moves in the market.įundamental Traders look at economic news such as earnings reports, and acquisitions. Technical traders tend to use the pure price movement of the market to predict where the market is going to go. If a Day Trader predicts the market will fall, they will ‘short sell’ with the intent of making profit from the fall.ĭay Traders can use technical analysis and/or fundamental analysis to make their trading decisions. If a trader predicts the market will go up, a Day Trader will seek to buy into that market with the intent of getting paid. ![]() The most common forms of Day Trading include Stocks, Foreign Exchange (FOREX), Futures, and Optionsĭay Traders seek to predict the movement of a market in the short term and profit from that movement. There are many markets available to trade, and in many different ways. This means that a trade is both opened and closed within that trading day. Day Trading describes the buying and selling of a security within the same trading day. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |