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Day Trading 101
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Trading, business and the financial market is a big, complex world. There’s foreign exchange, currency trading, and even day trading. And perhaps, it is day trading that needs more than just a simple mention in the book, for one, foreign exchange and currency trading are relatively easy to understand, day trading is a whole new concept.
Simply put, day trading is the buying and selling of financial investments and securities within the same trading day. These financial investments and securities would include stocks, stock options, currencies, and contracts like equity index futures and commodity futures. As opposed to swing trading where the stocks are held for a couple more days, the stocks in day trading are held only for the duration of the trading day.
Day traders buy and sell securities during the day, and do not hold stocks overnight. Anyone interested in day trading must have enough capital for him/her to be able to buy at least 1000 shares of a particular stock on a particular day. A neophyte in this venture would do well to save around $25,000 for him to be able to play in the market. Furthermore, this should be treated as a 100 percent risk capital.
Day traders should know how to cut their losses short. They should know to trade along with the trend, go with the flow, and never to get emotionally attached to their trades. It is advised to trade high volume, popular stocks as they are easier to sell at the end of the trading day.
Day Trading Currencies
As day trading requires a capital of at least &25,000, many might ask what a trader could do with a capital less than $25,000. The solution: trade currencies. A player could day trade currencies with as little as a couple of hundred dollars. All you need to do is open a FOREX mini account.
One of the perks of day trading currencies is that the FOREX market is open 24 hours a day. You can day trade even at night, anytime of the day, any day of the week. There’s no ‘uptick rule’ which makes selling of currencies as easy as buying them. The player can day trade his capital, providing him with chances to cut back on possible losses. The player also has greater leverage. Normally, day traders have an intraday margin of 4 to 1, allowing them to trade $100,000 worth of stock with their $25,000. But day trading currencies or short-term trading has a 50 to 1 margin, which allows the player to trade $1,250,000 with $25,000 or less.
What’s more, the trader has the option of deciding the amount of leverage to use depending on his day trading strategy, his available capital and the risks he’s willing to take. It’s also more liquid because the currencies are always in action. As there are only few currencies to monitor as compared to stocks, currency day trading is easier to follow currencies than stocks.
A risky business, one can earn as much as $50,000 in day trading for someone with a keen business sense. As the market is prone to fluctuations, the day trader must be always alert as to when to decide to sell the stock or hold for the right time. In a snap of the fingers, everything could be lost, or you could also have earned your first million. This isn’t a game of luck. Research, study the market, learn the strategies and remember to make wise decisions.
Currency Foreign Forex Trading News
Why MetaTrader is the Best Trading Software - Phones Review
 Phones Review | Why MetaTrader is the Best Trading Software Phones Review The foreign exchange market or Forex market is where the entire decentralized trading of international currencies takes place. Buyers and sellers across the globe work from financial centres' where trading of these currencies goes on twenty-four hours ... |
Liquidity Strained As Forex Traders Head For Safety - Wall Street Journal
 Jakarta Globe | Liquidity Strained As Forex Traders Head For Safety Wall Street Journal By Eva Szalay Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Jerky shifts in exchange rates could lie ahead as a Greece-inspired rush into the safe-haven dollar prompts some traders to warn that liquidity in the foreign-exchange market is suffering. FOREX-Euro slides to fresh 4-month low on Greek concerns FOREX-Greece worries send euro to 4-mth low vs dollar Which major currency will do best in the months ahead? |
India Likely Intervened In Forex Market - Wall Street Journal
 AFP | India Likely Intervened In Forex Market Wall Street Journal The central bank's ability to intervene in the currency market is limited by India's modest foreign exchange reserves. Recent data show India's foreign-exchange reserves fell by $2.2 billion to $293.2 billion as of May 4, possibly as a result of the ... RBI seeks forex conversion data Half of corporate India's forex exposure unhedged, says RBI 'Free-falling' Indian rupee hits new lows |
You too can be a forex trader but be warned, it's a gamble - Sydney Morning Herald
You too can be a forex trader but be warned, it's a gamble Sydney Morning Herald But the idea that you can suddenly speculate in foreign exchange and make money, just because it's through $US1, is ridiculous. What could you possibly know about the future direction of the forex markets? What edge could you possibly have on the whole ... |
Argentine peso dives amid black market controls - Reuters
 KIMA CBS 29 | Argentine peso dives amid black market controls Reuters In the last week, the AFIP tax agency has severely limited foreign currency purchases at the official exchange rate, sending many individuals and small business people to the parallel market. The peso closed at 5.56/5.59 per dollar on the black market, ... ANALYSIS-Argentines jump through new hoops to get dollars |
Euro Drops Versus Dollar, Yen on Greece Crisis Contagion Concern - Bloomberg
 AFP | Euro Drops Versus Dollar, Yen on Greece Crisis Contagion Concern Bloomberg 'So Much Oversold' “Greece still weighs on risk foreign exchange,” said Boris Schlossberg, director of research at online currency trader GFT Forex in New York. “We've come to a point where it is so much oversold that even a morsel of good news could ... FOREX-Euro rallies from 4-month low but crisis remains Euro Reaches Four-Month Low as Schaeuble Says Crisis May Last Forex: What Happens If Greece Leaves The Euro? |
Currency Trading Platform iFOREX Introduces 1-on-1 Forex Training - MarketWatch (press release)
Currency Trading Platform iFOREX Introduces 1-on-1 Forex Training MarketWatch (press release) ROAD TOWN, Tortola, May 14, 2012 (BUSINESS WIRE) -- Foreign exchange and CFD trading platform iFOREX has today announced the expansion of their Forex training services. All new iFOREX clients can now take advantage of a complementary 1-on-1 tutorial ... Online Trading Platform iFOREX Expands its Development Team to Offer More Services |
WORLD FOREX:Dollar Snaps Winning Streak As Euro Stabilizes - Wall Street Journal
WORLD FOREX:Dollar Snaps Winning Streak As Euro Stabilizes Wall Street Journal In the CME's currency futures market, the net short position in the euro was $27.7 billion as of Tuesday, an 18% increase over the previous week, according to US Commodity Futures Trading Commission data released Friday. "It will take either another ... |