Are you interested in becoming a trader? Whether it’s to pursue a new career path or simply earn an additional income on the side, day trading has significant potential as a lucrative solution. Of course, every trading method is associated with some level of risk, but these risks can be mitigated with knowledge, discipline and experience.
Put simply, day trading involves opening and closing a position on the market within the course of a single trading day. You can also buy and sell more than one security within a single trading session. This type of trading uses strategies that capitalize on high liquidity currencies, stocks or small movements.
In this post, we’ll take a look at the most popular and lucrative day trading markets that are available in 2019. This will give you an idea of where to start so that you know where to invest your time and eventually, your money.
Unlike traditional stock trading, which involves holding stocks for extended periods of time, day trading stocks comes with its own variety of benefits and potential risks. For example, opening a position in a company in day trading usually has lower margins, but it also means you’ll need less capital.
Traders also have the benefit of being able to profit from falling prices, making day trading stocks more accommodating to a wide variety of strategies. Companies are affected by a number of global, political and social elements on a daily basis, which means you can leverage news releases, financial reports and product announcements to make trades.
For almost as long as it’s been around, forex has remained the most liquid and popular day trading method. Since the foreign exchange market is not centralized, trades can be performed throughout the day, six days per week. The high liquidity of currency pairs means that there’s a lot of fluctuation on a daily basis, making it perfect for day trading.
Coupled in with the fact that forex is suitable for both technical analysis and a variety of other trading strategies, this makes forex an ideal starting point for beginners who want to get into day trading. Of course, like any trading method, there’s a lot that you need to learn before putting any money down.
Educating yourself on the fundamentals of forex is key to avoiding being part of the statistic that says most beginners leave the foreign exchange market with a loss. Your best bet would be to start with a demo account on a reputable brokerage platform such as FxPro. For more information on brokers and what to expect, here’s a detailed FxPro review from social trading site InvestinGoal.
Binary options are widely considered to be simpler and more predictable than other methods. In exchange for this, one can naturally expect lower profits and the ever-present chance of a loss. Whether this method is suitable for you or not depends on your trading style and how you wish to approach day trading.
With binary options, your decision is as simple – will the assets increase in value, or will it fall? It’s akin to having a card placed face-down on the table and being asked whether it’s black or red. What differentiates it from gambling is that there are a variety of external factors that an educated trader will consider to determine the color of that card.
As crypto continues to make its way into more aspects of society, it’s no surprise that the “currency of the future” has become a popular trading asset. While cryptocurrencies do have their own technical components that need to be understood in order to successfully trade them, it’s widely considered less difficult to get into than most other methods.
It’s an exciting trading avenue to say the least. Potential returns are often mouth-watering, but volatility has played a major role in crypto from the start. The influx of altcoins and an unpredictable future makes this trading method perfect for a certain type of trader, but a nightmare for others. As for whether it’s your best bet, that’s up to you to decide.
After choosing your preferred method, your next step will be to educate yourself. Today, the number of online learning resources available at our fingertips is more than sufficient. This means it’s time to ditch the Xbox and start wrapping your head around the fundamentals of day trading.
Once you feel like you know enough to get started, opening a demo account should be your next step. Trial and error will follow, but at least you won’t be putting down any money just yet.
Your best bet will be to learn and practice as much as possible before doing the real thing. And even if you fail in the beginning, what you learn in the process is priceless and will equip you with the knowledge to make better trades moving forward.
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