In day trading the price patterns form very quickly and require a disciplined, automatic response once a trading signal is perceived. Day trading most commonly refers to the practice of buying and selling stocks during the day such that at the end of the day there has been no net change in position. You don’t need to know everything about day trading to succeed as a day trader.
If you have a nose for business, guts and a sharp instinct for how the market shifts, then possibly day trading may be suitable for you. Market professionals agree volatility definitely is a plus for the day-trader. Day trading is extremely risky and can result in substantial financial losses in a very short period of time.
A trade needs to be completely planned in advance. Day-trading takes more finesse than most techniques. To day trade successfully requires good analytical skills, the ability to develop and follow a system, and stamina.
You need to master the psychology of day trading. What is a Pattern Day Trader? This is a day trader who day trades 4 or more times in 5 business days within a single margin account.
As with all trading activities, day trading carries a great risk.
You can start Day Trading with as little as $750 if you decide to trade using a spread betting account rather than a standard broker. Individuals who attempt to day trade without an understanding of market fundamentals often end up losing money. Day traders, both institutional and individual, play an important role in the marketplace by keeping the markets efficient and liquid. What is it about day-trading that attracts so many speculators to the markets?
Friday, February 16, 2007
Day Trading
Sunday, February 11, 2007
Foreign exchange market is different from the stock market
The foreign exchange market is also known as the FX market, and the forex market. Trading that takes place between two counties with different currencies is the basis for the fx market and the background of the trading in this market. The forex market is over thirty years old, established in the early 1970's. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies.
The difference between the stock market and the forex market is the vast trading that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. The amount is much higher than the money traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries. The
What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.
The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.
The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading, buying and selling are located in so many different times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market trading occurs.
The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.
