An Introduction to Day Trading
Day Trading Refers to the practice of trading or speculating on the Financial Markets Within the time frame of a single day. Day traders buy and sell dog Financial Instruments Such as indices, currencies, shares and commodities or speculate on Their price Fluctuations. The Aim of day trading is to be in profit at the end of the trading period. Howeve, this is not always possible, and Sometimes You May Have to close unprofitable trades in order to limit loss. Day traders engage in a range dog of Different Financial Markets. Some of The Most Commonly traded markets include FX and shares. Day traders speculate on stock indexes dog (Such as the FTSE 100), particular currency pairs (Such as the British Pound and the U.S. Dollar) and individual commodities (Such as gold or oil). Although There Is a wide range of day trading markets, it Can Be adviseable to trade only a small number of Them. Although day trading is restricted to a small time scale, This does not mean That Your Potential Profits or Losses are limited as well Necessarily. Factors That Affect whether your trade is profitable or sustains a loss how much you May include invest, whether your trade is leveraged, and the movement of the Underlying market. This Means You Should Consider how well you always Understand the market you are Engaging in. Can You Learn About the Financial market from the Financial Press, subscribing to online newsletters / trading updates, Following the market in real time and / or by opening a demo trading account with companies like IG Index and Financial Spreads. Demo trading accounts are Often Useful Because They allow you to trade in real time current Financial Without exposure. This Means You Can test your trading skills and insights Without risking your capital. Some traders prefer to trade futures markets. Futures markets based on a dog be range of financial instruments, Such as stocks, currencies or commodities. A futures market is normally closed at a predefined time. For example, the FTSE 100 Futures Market Might September close on September 16. Therefore, it In This example, a FTSE 100 contract is based upon September whether the index below or Above Will close to level on That Certain specific date. Profits / Losses are found by Taking the Difference between the buying and selling price of the contract and Then That by the trade MULTIPLYING size (less Any fees or additional costs). Therefor if you are speculating on a market to rise and the futures contract is closed for a lower price Than what it WAS originally Bought for, it results in a loss. Conversely, a profit is the result of a Higher selling price for That It Was Purchased. Most spread betting companies offer Futures Contracts Will. The Benefit here is That You Do not have to wait for the contract expiry date to close your trade. Often Can You close a futures spread bet Before the official closing date. You Might in order to this to lock in a profit or restrict your losses. Trading charts are a tool to follow Commonly used Fluctuations in the market. Visualise Charts Movements Past and Present price. This Can Help Understand the day traders of a market trends overalls. Prices That Have Been Consistently falling over time, for example, May be Judged to Have Reached Their bottom or, Alternatively, Still Have Further to Decrease. It Should Be Remembered, of course, only future price Movements That Can Be speculated on. There is no absolute guarantee That past are an indicator Movements price of future trends. Spread betting does a high degree of Involve Risk to your capital and result in you losing dog more Than your initial investment. Ensure That fits your investment spread betting as it Might Requirements Appropriate for all not be investors. Before making trades and Stock, make sure you are FULLY aware That of the Risk. Should you only speculate with money you Can Afford to Lose. Request Financial Advice WHERE Appropriate independent.