Currency Trading Information Channel |
|
|
|
Exploring the World of Day TradingAre you looking into a career in day trading? In the past, the tools for day trading were available only to professionals. But thanks to the power of the Internet, everything you need to get started is now conveniently online. If you have a nose for business, guts and a sharp instinct for how the market shifts, the maybe day trading is the job for you. What is day trading? Basically it is daily, online stock trading with very short investment. The individuals who do this day in and day out are called traders, not investors in the traditional sense. A day trader is someone who will buy a stock that has high volume and liquidity and will sell that same stock within a few minutes up to a few hours. Day trading happens only during the day. Those who do day trading usually stay glued in front of the computer and monitoring which stocks have a fast turnover. During the day trading, they quickly buy a large number of stocks at a time and sell it once they see the stock gain within the day. Day traders will make a purchase of a stock, hold it for only minutes watching constantly for the stock to go up or down, selling if it goes down only two or three cents and holding if it goes up to about five or six cents and selling. The stock is almost never held over night as there are many other opportunities and a stock that takes hours to move is not worth holding. Day trading can be a very high paced and stressful lifestyle. There are millions of day traders across North America but it can be a very fast way to lose everything. Some people are making over $5000.00 a day but it takes months and sometimes years to learn and master day trading. The broader meaning of the term day trading includes those who trade daily from their homes or offices, through Internet brokerages. These day traders might buy and sell stocks in minutes, but might also hold some overnight or longer. The latest buzzword for this is "swing trader," those who keep a stock within in a few days before finally selling them. To some, particularly the so-called bandits, day trading is just a numbers game. They do little research and just watch for moving stocks with good spreads. Others are more scientific about it, relying on news and technical analysis to catch everyday price fluctuations. Day trading requires a certain amount of capital. Generally, day trading should have enough trading capital to buy at least 1000 shares of any given stock on any particular day. There are very few stocks priced under $20 that have the degree of liquidity necessary to make them suitable for day trading. This means that a novice day trader should normally have day trading capital of at least $20,000 to start. In addition, the new day trader should treat this as 100% risk capital and should not have to unduly worry that the whole amount of this capital may be lost very quickly. You must also be aware that not all stocks are suitable for day trading. Day trading should never trade unlisted or thinly traded (low volume) stocks. These stocks have poor liquidity and hence a higher price volatility. This may make it hard for you to exit your day trading position quickly at a fair price. Trade only high volume, well-known stocks. Michael Sanford has a wealth of trading knowledge available at the stock market and day trading resource center.
MORE RESOURCES updated Tue. April / 23 / 2024 How to get started in trading forex CNN Underscored US, Japan and South Korea seek to limit dollar's rise Financial Times Asia's central bankers struggle to contain strong US dollar Financial Times BRICS: A guide to Investing in emerging markets CNN Underscored Currency Crash: How Millennium Management Made $40 Million Betting Against the Egyptian Pound Yahoo Finance UK Stock market today: Asian benchmarks trade mixed amid expectations for US rates to stay high FOX 5 San Diego This Is How You Make Money Trading New York Magazine Stock market today: Global benchmarks are mixed while US seems committed to current rates WKRG News 5 3 Best Forex Brokers for 2024 NerdWallet China's New Currency Peg Council on Foreign Relations Towards Increasing Complexity: The Evolution of the FX Market - Liberty Street Economics Liberty Street Economics - Foreign exchange contact group (FXCG) European Central Bank Stock market today: US stocks slip to deepen weekly losses following mixed earnings reports CW39 Houston Zimbabwe's new gold-backed currency sliding on black market Voice of America - VOA News Forex Trading for Beginners NerdWallet Why Is the Forex Market Open 24 Hours a Day? Investopedia USD/JPY Analysis Today - 22/04: Eyes Towards BoJ (Chart) DailyForex.com Illegal money changers adapt to Zimbabwe's ZiG currency rollout Business Insider Africa Best Brokers for Trading GBP to USD Economies.com China's New Currency Playbook Council on Foreign Relations GBP/USD Analysis Today - 22/04: More Losses (Chart) DailyForex.com How Often Do Exchange Rates Fluctuate? Investopedia Weekly Forex Forecast - 21/04 (Charts) DailyForex.com Most used currencies SWIFT 2024 Statista EUR/USD stabilizes while EUR/GBP rallies and GBP/USD tumbles IG UAE (English) Indian rupee is now aiming to be world’s alternate reserve currency The Economic Times How can blockchain platforms make currency trading cheaper? Financial Times USD/MXN Analysis Today - 22/04: Bearish Trend Seen (Chart) DailyForex.com Trading Costs - Trading Charges FOREX.com EURUSD Key Levels To Watch For The Next Breakout Daily Price Action Weekly Forex Forecast For April 22 - 26, 2024 Daily Price Action How to Trade Forex for Beginners | Learn Strategies and Tips Admiral Markets EUR/USD Analysis Today - 22/04: Bearish Trend (Chart) DailyForex.com How SEC Regs Will Change Cryptocurrency Markets Investopedia Best forex trading app of 2024 TechRadar How to Start Forex Trading in 3 Steps Admiral Markets GBP/USD Forecast Today - 22/04: Pound Keeps Falling (Chart) DailyForex.com Goldman Sachs highlights Dollar, Swiss Franc as inflation hedges Investing.com India
|