Analysts who specialize in studying the global financial market claim that many traders lose a certain percentage of their potential income only because of the lack of full-fledged theoretical training in this segment of online trading. For example, a client of a brokerage company knows several earnings strategies for buying / selling financial assets, they allow him to earn good income, and he no longer seeks to test the effectiveness of new projects at the risk of his capital. If this is a family man, with normal work, who celebrated his 30th birthday, he simply cannot understand why these experiments?

Of course, caution in such situations will never be superfluous, but this does not mean that you should limit yourself to some kind of framework and forever abandon transactions that are not in your list of reliable transactions. Also, it must be remembered that traders choose not only a brokerage company and liquid assets to operate in financial markets. In addition to these parameters, there are other factors that allow you to increase the amount of profit without changing the main indicators (trading floor, the size of the bet, the selected financial instrument, etc.). In order for readers who do not have the necessary education and experience to understand the essence of the presented review, we will consider and analyze the well-known trading strategy of day-trading. This information will help you to independently determine how this type of speculative trading is appropriate for your situation.

 

what is daytrading?

 

General characteristics of day trading

In the special literature, you can find a large number of different definitions of day trading, but if you do not pay attention to small nuances, they all boil down to the fact that the main feature of these trades is the period of their conduct. In this situation, the opening and closing of the transaction is carried out on the same day.

It is possible that many readers will be greatly surprised to learn about the relationship between the timing and the level of profitability of trade transactions (intraday transactions make it possible to earn up to 1000% during the day). But it exists, and the main factors explaining this connection are:

• The short duration of the operation allows the trader to monitor this process online. In the case of any force major, you can take appropriate measures and avoid losses.

• You do not have to pay a swap commission, which is mandatory if the transaction is postponed to another day. With a large cash flow, the trader saves a decent amount.

• Day-trade allows you to use almost any forex strategy.

• The type of trading in question provides an opportunity to use more leverage than in a situation where a trader makes a long-term deal.

• The mechanism of intraday transactions does not cause any particular difficulties in the process of studying its key characteristics. This task is performed even by beginners who do not have the appropriate education.

• Trading participants do not need to carry out a fundamental analysis (concerns the instruments of interest to the trader). Enough to closely follow the news and own the basics of those. analysis.

• Traders have the opportunity to combine the strategy under consideration with other options of trading operations. Thus, it is possible to “insure” risks without reducing the profitability of intraday transactions.

Novice traders need to remember one important thing. If you do not want to study the global financial market, analyze the factors that influence its development and constantly monitor world economic news, you should not waste time on the activity under consideration, this is not yours. Online trading is not a casino, and not even a bookmaker. Of course, a certain amount of luck will not prevent the trader, but just as well, it will not interfere with a businessman, a firefighter or a representative of any other profession.

Recommendations from experienced professionals

Experienced specialists in de-trading almost never treat the strategy in question as the main method of generating income. At the same time, each of them claims that this method has not rarely allowed them to earn decent money, without much financial investment or the help of more competent specialists. What is needed for this? We will not list standard recommendations that are universal not only for participants in the global financial market, but also for representatives of almost any business activity.

Compliance with the following tips has repeatedly proved that day trading is a great way to make money, regardless of the trading platform that the trader uses, the broker’s individual conditions, the amount of potential profit, etc.

The main thing that should be remembered by both an experienced and novice trader, includes the following list of recommendations of experienced professionals:

• The average daily working time limit for a project should not exceed 2-3 hours.

• It is advisable to set the maximum / minimum number of transactions (per day / week), their cost and the total amount of potential profit.

• A series of 2-3 failed trades is a warning that a short break should be taken.

• Always need to set realistic goals.

• Any incomprehensible situation on the market is a signal of the need to close all transactions and deal with the situation.

Compliance with the above tips, thoughtful decision-making, as well as a complete rejection of emotional actions, will surely help you turn de-trading into an interesting and financially beneficial occupation. The main thing is to believe in one’s own strength, to realistically assess opportunities, and also never to trust emotional impulses!

TRADE OPTIONS

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

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