Currency Trading Information Channel
Facts of Day Trading
Are you thinking of entering the fast-paced world of day trading? Arm yourselves with the information from this fact sheet on day trading.
What is day trading?
Day trading is an investment tactic that does online daily stock trading with a relatively short investment. Those who do day trading usually buy and sell securities during the same market day and, as a general rule, do not hold stocks overnight. Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations.
How is day trading different from swing trading?
Day trading relatively holds the stock for only the day. After the stock market closes, a day trader has no stock in his hands. Swing trading holds a stock for at least a few days, waiting out for the best price before dumping it back to the market. Day trading is much more stressful and requires guts and a keen business sense. Once you get good at day trading, you can earn up to $50,000 from your initial investment.
How much capital would you need for day trading?
You need an investment equivalent to buy 1000 stocks. That is roughly around $20,000. Because the chances are small that you will find a marketable stock with a price of under $20, this is enough to get your day trading underway. However, you must remember that this is a 100% risk capital so do not worry too much if you lose this amount very early.
What are the general rules for day trading?
- Always trade with the trend.
What are the most suitable stocks to trade for day trading? It is advisable to trade high volume stocks. Go with the trend with the popular stocks available. It'll be easier for you to sell those stocks at the end of the day trading.
How does a usual day trading transaction occur?
For example, at 10:00 AM a day trader might buy 1000 shares of stock XYZ just as the price begins to rise on good news, then sell it at 10:04 AM when it's up by 1/2 ($0.50). The day trader makes $500, minus commission. With today's cheap commissions of $29.95 or less per trade, that's a quick $440.10 or better, excluding taxes.
Most people who deal with day trading spend all of their time in front of the computer, watching the slightest change in the stock price. As the prices go up and down, the day trader must be alert as to when to sell his stock or wait for the moment to hold on it. This can be a very stressful lifestyle as a mere second could mean an increase of half the stock price and missing that moment for any person engaging in day trading could mean a loss on his investment.
Day trading is not a get rich scheme. It is serious business where you could lose everything within minutes because of wrong information. Before jumping into day trading, remember to do your homework first. Go to seminars on day trading, use simulations if possible and practice reading market indicators. To be a successful day trader, don't just need luck. Knowledge and experience counts. Welcome to the world of stock markets and investments!
For More Information and articles about day trading check out the forex trading center.
MORE RESOURCES updated Wed. October / 23 / 2019
Angola Drops Currency Trading Band, Weakening Kwanza Yahoo Finance
Bank of Namibia clarifies forex trading rules New Era Live
HYCM to Host an Exclusive Advanced Forex Trading Seminar in Dubai Africanews English
Forex tips for trading the GBP/USD ForexLive
Namibia: Forex Trading, Not for Everyone - BoN AllAfrica.com
Pound firm as traders weigh Boris Johnson’s next move on Brexit Financial Times
Vanguard is reportedly testing a platform to compete with banks in the $6 trillion-a-day currency market | Markets - Business Insider
Vanguard is reportedly testing a platform to compete with banks in the $6 trillion-a-day currency market | Markets Business Insider
Top 8 Mobile Apps for Forex Trading Techzone360
What Is Forex Trading and How Does it Work? - RushPRnews.com
Forex traders share the act | Business Mail and Guardian
Everything You Need To Know About Forex Trading Love Belfast
(Video) Forex Trading Forecast for EURUSD, GBPUSD, AUDUSD, EURGBP, GBPCAD (October 7 - 11, 2019) - Daily Price Action
(Video) Forex Trading Forecast for EURUSD, GBPUSD, AUDUSD, EURGBP, GBPCAD (October 7 - 11, 2019) Daily Price Action
BitPesa Rebrands to AZA, a Currency Trading Solutions Provider, and Raises $15 Million - bitcoinke.io
Currencies trader sues Citi over ‘malicious’ prosecution Financial Times
EUR/USD technical analysis: Euro on the back foot in the New York session, trading sub-1.1140... - Forex Crunch
EUR/USD technical analysis: Euro on the back foot in the New York session, trading sub-1.1140... Forex Crunch
USD/CAD - Canadian Dollar Ignores Election Result Baystreet.ca
Brexit Pound to Euro exchange rate: How will Sterling react to Brexit this week? - Pound Sterling Forecast
Brexit Pound to Euro exchange rate: How will Sterling react to Brexit this week? Pound Sterling Forecast
A Guide to Trading Psychology DailyFX
Narrowed trade deficit, life time high Forex Reserve and FII buying provide cushion in INR - Moneycontrol.com
Narrowed trade deficit, life time high Forex Reserve and FII buying provide cushion in INR Moneycontrol.com
6 Reasons to Use Windows VPS in Forex Trading FXDailyReport.com
Cambridge Global Payments Announces New Endorsement Partnership with the Boating Ontario Association - Business Wire
Cambridge Global Payments Announces New Endorsement Partnership with the Boating Ontario Association Business Wire
Can you still start trading with no money online? Forex News Now
EUR/USD: Resistance Zone to Force Short-term Correction DailyForex.com
USD/CHF Forex Signal DailyForex.com
Aussie Trading Higher In The Morning Session Action Forex
Forex Trading for Beginners Yahoo Finance
Crypto Currency In Nigeria: Regulatory Framework & Related Issues - Fin Tech - Nigeria - Mondaq News Alerts
Crypto Currency In Nigeria: Regulatory Framework & Related Issues - Fin Tech - Nigeria Mondaq News Alerts
Currency Trading for Beginners Benzinga
G10 FX: Disrupted recent trends –... Forex Crunch
Retail forex trading set to go live today Economic Times
Forex Trading Philippines Benzinga
Your first 5 minutes as a forex trader ForexLive
Learn the Basics of Trading Currencies FX Empire
malaysia-chonicle.com Malaysia Chronicle
A Guide to Trading Forex in Canada Benzinga
How Does Forex Trading Work? FinSMEs
Best platform for Forex trading Augusta Free Press
How to be a forex expert ForexLive
What is forex trading and why it is going strong in 2019? Business MattersBusiness Matters
Never lose hope in currency trading business Rocky Mountain Collegian
USD/MXN Forecast: USD Struggling Against Mexican Peso DailyForex.com
How to Start a Currency Trading Business Virtual-Strategy Magazine
Sudanese Pound hits new low amid economic uncertainty Radio Dabanga
The currency-trading scandal continues to dog the banks The Economist
5 Tips for Investing in Currency | Investing 101 U.S. News & World Report