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 Sun. March / 07 / 2021
Forex Trading – How Do I begin? - NuWireInvestor NuWire Investor
FOREX.com Review 2021: Fees, Services and More Yahoo Finance
Which Are the Basic Forex Trading Styles? NameCoinNews
What is the Interbank Market? Investment U
How to Trade Commodity Currencies in Forex Trading Moneyshow.com
2 crypto currency trading platforms shut down by New York Attorney General WWTI - InformNNY.com
Comprehending Forex Trading Signals Live Bitcoin News
3 Simple Forex Trading Strategies Mighty Gadget
How to Start Home-Based Business with Forex? The African Exponent
UPDATE 1-China forex reserves fell to $3.205 trln in Feb Yahoo Finance
What Is Forex Trading? Forbes
EUR/USD Forex Signal: Trading Sideways DailyForex.com
How to increase consistency in making money doing Forex Trading Australian Times
Trading Forex For Living – is it for real? TechFinancials
We estimate NFP rose to 225K, unchanged Unemployment Rate of 6.3% in February – Goldman Sachs - Forex Crunch
We estimate NFP rose to 225K, unchanged Unemployment Rate of 6.3% in February – Goldman Sachs Forex Crunch
Nigerian cryptocurrency: CBN ban Crypto [Dogecoin, Bitcoin, Ethereum] trading in Nigeria as China, India, Iran ban crypto-currency trades - BBC News
Nigerian cryptocurrency: CBN ban Crypto [Dogecoin, Bitcoin, Ethereum] trading in Nigeria as China, India, Iran ban crypto-currency trades BBC News
Forex Weekly Look Back: PrimeXM February trading volume reaches $909.89 billion, Refinitiv and MarketsMojo pair up to expand global reach - Leaprate Forex Trading News
Forex Weekly Look Back: PrimeXM February trading volume reaches $909.89 billion, Refinitiv and MarketsMojo pair up to expand global reach Leaprate Forex Trading News
The Analytical Overview Of The Main Currency Pairs Action Forex
Central bank, police officials warn against investment in forex trading floors - http://en.vietnamplus.vn/
Central bank, police officials warn against investment in forex trading floors http://en.vietnamplus.vn/
GBPEUR Trades at 1.16 as Markets Fear Bonds Again Pound Sterling Forecast
GBP/EUR: Pound Holds €1.16 Currency Live
USD/PKR: Rupee Weakens Amid Political Uncertainty Currency Live
The 6 Best Online Forex Trading Classes of 2021 Investopedia
Forex Market: Unlocking Opportunities for Investors Visual Capitalist
Forex Brokers: Are They a Scam? | Investing | US News U.S News & World Report Money
Next Forex Trading Terms You Need to Know Before Trading North Forty News
Inside the weird new world of social ‘forex’ trading—where you sign up friends, and some report risky red flags for investors - Fortune
Inside the weird new world of social ‘forex’ trading—where you sign up friends, and some report risky red flags for investors Fortune
Daily market commentary: Gold is still suffering against the strength of the greenback - Leaprate Forex Trading News
Daily market commentary: Gold is still suffering against the strength of the greenback Leaprate Forex Trading News
A Forex Trading Guide For Beginners | Sponsored | state-journal.com State-Journal.com
Best online brokers for forex trading in March 2021 Bankrate.com
The FINANCIAL - Making Money By Forex Trading The FINANCIAL
Facts You Need To Know About Forex Trading Forbes India
Everything To Know About Getting Into Forex Trading GQ Australia
How to Trade Forex? - A Guide to Forex Trading in 2021 DailyForex.com
A guide to forex trading instruments - Boca Raton's Most Reliable News Source - The Boca Raton Tribune
A guide to forex trading instruments - Boca Raton's Most Reliable News Source The Boca Raton Tribune
What You Should Know About Forex Trading Signals - Robotics and Automation News - Robotics and Automation News
What You Should Know About Forex Trading Signals - Robotics and Automation News Robotics and Automation News
is Forex Trading a Good Way to Make Money Online ? Love Belfast
Forex vs. Cryptocurrency Trading, Explained Cointelegraph