What is Day Trading?
Day trading can be your ticket to make some money and achieve your dream of being financially independent. It is possible to day trade almost all markets but the most common ones are stocks, Forex, cryptocurrencies and index futures.
But, what exactly is day trading? What made it so popular today?
Day Trading at a Glance
Day trading is basically a form of trading where you buy and sell securities in the positions that are typically opened and closed within the same day. As stated earlier, liquid markets can all be day traded, such as index futures, commodities, stocks, Forex as well as other derivatives.
How is Day Trading Done?
Instead of fundamental data, sentiment and charts are the tools that day traders use to come up with trading ideas. There are day traders specializing in trading the regular list of extremely liquid instruments such as Forex pairs and CFDs or index futures. There are also day traders who prefer to trade stocks wherein they search for the most volatile and active stocks on a daily basis.
Several approaches can be used for day trading although successful traders almost stick to the disciplined process to identify and carry out trades every day. It includes research right before the opening of the market as well as after its closing. They also develop a watch list and create new strategies.
A good trading strategy must include some or all of the elements below:
When it comes to day trading, it is a must to monitor your performance on a regular basis to weak on your weaknesses and build on your strengths.
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