The increasing popularity of CFD trading has led to the tremendous expansion of the possibilities when it comes to trading tools and resources that make accessing the markets as simple as possible. This is one of the reasons why more and more traders are becoming intrigued to take on trading as a full-time career.
If you’re one of the thousands of traders wondering what it would be like to Day Trade for a living, keep reading to find out more.
What does a Day Trader do?
Day trading is buying and selling securities within a single trading day. Although it occurs in all financial markets, it is most common in the forex and stock markets. Trading strategies that focus on short-term trading are common among day traders. As a result, they will be able to take advantage of small price movements in highly liquid stocks or currencies.
Maintaining a constant eye on financial news and events is one of the most critical aspects to consider when day trading. Markets are likely to be influenced either positively or negatively by these events.
Common Strategies
When it comes to being prepared in the markets, it's essential to find the best trading strategy that matches your needs and goals. The following are some of the most common day trading strategies.
● Scalping: Focus on numerous small profits on small price changes throughout the day.
● Range trading: Determines whether to buy or sell primarily by using support and resistance levels.
● High-frequency trading: The use of complex algorithms to take advantage of short-term market inefficiencies.
● News-based trading: Spotting trading opportunities by analyzing the increased volatility associated with breaking news.
Eventually, it all comes down to your determination to become the best version of the trader you aspire to be. Your trading goals will guide you through the most challenging situations in the markets and it is up to you to find effective strategies that will keep you confident even when things go sideways.
Does this sound like you?
If you believe you’ve got what it takes to become part of the Day Trading experience, it means that you need to prioritize your trading skills and knowledge by practising on a daily basis and staying up to date with any news or events that can affect your trading positions. Log in to your XPro Markets account to get started!
Risk Warning: Contracts for Difference (‘CFDs’) are complex financial products, with speculative character, the trading of which involves significant risks of loss of capital.
Disclaimer: This material is considered a marketing communication and does not contain and should not be construed as containing investing advice or a recommendation, or an offer of or solicitation for any transactions in financial instruments or a guarantee or a prediction of future performance. Past performance is not a guarantee of or prediction of future performance.
