Day trading is a very popular type of trading. It can occur in any marketplace but is most commonly used in the forex markets and the stock markets. Here, we take a look at what day trading is, how to day trade and how to become a day trader.
What is Day Trading?
Day trading is defined as the process of both buying and selling an individual security in a single day. The position is never held overnight.
Because the position is only held for a short period of time, day traders traditionally use high amounts of leverage and short-term trading strategies. This means that day traders have the ability to capitalize on even the smallest price movements.
How to be a Day Trader
We’re often asked how to become a day trader. The answer is relatively simple. To be a successful day trader, you have to have certain characteristics. These include:
- Knowledge and experience of the marketplace
- Large amounts of working capital
- A set trading strategy
- High amounts of self-discipline
If you’re sat wondering how to be a day trader, then the onus really is on you to learn. Knowledge and experience are two things that you cannot day trade without, so you really need to brush up on your skillset before you take the plunge into trading.
What Do I Need to Become a Day Trader?
You can become a day trader from home. After increasing your knowledge and creating a strategy, you’ll need to open an account here at Sharp Trader. First, make the most of a demo account to hone your day trading skills and once you feel confident enough you can begin trading for real.
Trading tools such as an economic calendar and calculators are essential for day traders. These can help you plan and adapt your strategy throughout the day. Together, these tools will help give you the edge over other day traders and the rest of the marketplace.
If you’re interested in becoming a day trader, ensure that you read carefully and expand your knowledge base. By learning the tricks of the trade and ensuring that you have all the software you require, you stand the highest chance of bypassing risk and maximizing your profits.