Day trading is the practice of active buying and selling of the stocks, options, futures and currencies within a trading day. All trades are completed within a day so that after the closing of market the day trader do no hold any open positions and therefore are not subjected to any overnight risks. The traders trade against very small changes in price of the financial instruments. Day trading is usually a vigorous trading activity requiring high concentration and time during trading hours.
In order to be successful at day trading support and resistance, you must have confidence in your trading strategy. Most traders with less than 2 or 3 years of experience, and for those who are just starting to learn day trading...well, they have nothing to be confident about. (But, there is a strategy that really helps inexperienced traders, so don't be discouraged, we'll talk about it in a minute.) If your trading strategy isn't making you money consistently, in "real time", you can't have confidence in it. But, how can you tell if your method is any good when you don't yet have the nerve and discipline to trade it?
Day trading can be considered as an offspring of high speed electronic communication networks. Most day traders today trades markets from a distant location such as their home or work area. They use trading software, the direct access trading platform, installed in their computer connected to internet to execute trades in real-time. In order to qualify for the trades, the trader must maintain a margin in the corresponding market. It is the day trading broker who maintains the margin for the trader and provides the direct access trading platforms. Although there are web-based trading platforms available, they are not suitable for day trading.
Day trading is a broad term, encompassing many trading styles. The one thing all day traders have in common is that they are out of their positions at the end of the primary trading session. No open positions are held overnight, at weekends, or even during lightly traded electronic sessions outside primary trading hours. The typical image of a day trader is of a person glued to a screen during long market hours, possibly entering several trades during the course of a day. That is true of many traders, but there are other styes. For example, my own approach is quite different.
As told earlier, there are a variety of products available for day trading. The most popular ones are the stock and the forex currencies. Others include options like stock options and futures options, and futures like currency futures, stock futures, stock index futures and commodity futures.
Any strategy that loses more than 60 % of the time (such as a trend-following system) will take enormous courage to trade, no matter what you do. These strategies demand a certain type of person (rich, with ice water in their veins). Thousands of strategies force you to place a fixed stop and wait to see if it gets hit. These are difficult to trade with confidence - even IF you can find one that wins more than 65 - 70% of the time and makes money in the process. That's a big IF. You can spend a career and thousands of dollars searching for success with this kind of strategy, most unfortunately end in failure.
In order to be successful at day trading support and resistance, you must have confidence in your trading strategy. Most traders with less than 2 or 3 years of experience, and for those who are just starting to learn day trading...well, they have nothing to be confident about. (But, there is a strategy that really helps inexperienced traders, so don't be discouraged, we'll talk about it in a minute.) If your trading strategy isn't making you money consistently, in "real time", you can't have confidence in it. But, how can you tell if your method is any good when you don't yet have the nerve and discipline to trade it?
Day trading can be considered as an offspring of high speed electronic communication networks. Most day traders today trades markets from a distant location such as their home or work area. They use trading software, the direct access trading platform, installed in their computer connected to internet to execute trades in real-time. In order to qualify for the trades, the trader must maintain a margin in the corresponding market. It is the day trading broker who maintains the margin for the trader and provides the direct access trading platforms. Although there are web-based trading platforms available, they are not suitable for day trading.
Day trading is a broad term, encompassing many trading styles. The one thing all day traders have in common is that they are out of their positions at the end of the primary trading session. No open positions are held overnight, at weekends, or even during lightly traded electronic sessions outside primary trading hours. The typical image of a day trader is of a person glued to a screen during long market hours, possibly entering several trades during the course of a day. That is true of many traders, but there are other styes. For example, my own approach is quite different.
As told earlier, there are a variety of products available for day trading. The most popular ones are the stock and the forex currencies. Others include options like stock options and futures options, and futures like currency futures, stock futures, stock index futures and commodity futures.
Any strategy that loses more than 60 % of the time (such as a trend-following system) will take enormous courage to trade, no matter what you do. These strategies demand a certain type of person (rich, with ice water in their veins). Thousands of strategies force you to place a fixed stop and wait to see if it gets hit. These are difficult to trade with confidence - even IF you can find one that wins more than 65 - 70% of the time and makes money in the process. That's a big IF. You can spend a career and thousands of dollars searching for success with this kind of strategy, most unfortunately end in failure.
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Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Benefits Of Investing In Loose Diamonds You have full permission to reprint this article provided this box is kept unchanged.