In a nutshell, day trading is the buying and selling of securities usually in a single trading day. Though the buying and selling of securities can take place in any market, it commonly take place in the stock market and forex (foreign-exchange) market. Day traders are typically well-funded and must be well-educated on introduction to day trading . They use short-term trading strategies and high amount of leverage to capitalize on every slight price movements in highly liquid currencies or stocks. Day traders carry out 2 main functions in the stock market. Firstly, they provide most of the stock market’s liquidity; secondly, they keep the stock markets effectively running through arbitrage.
Day traders must be well-established in the trading field as well as have an in-debt knowledge about the market, hence, possessing the best trading education. Day traders must possess adequate education in the following areas: foremost, they must have sufficient experience and knowledge in the market. Day traders without the knowledge of market basics may end up losing their funds. More so, they need to have an edge over the remaining market. Day traders can adopt several strategies such as trading news, arbitrage, and swing trading, etc. Lastly, day traders must be informed to use risk capitals which they don’t mind loosing. This system is also beneficial to day traders. ECN or Level 2 quotes: ECN is a computer-based system that displays the best available bid and seeks quotes from multiple market participants, with which it automatically matches and executes orders. These can provide you with a sense of orders that are executed in real time.
Aside personal experience, day traders need to acquire insights from professionals too. From our best live trading room, you can receive an unfiltered look at every move that our pro day traders had made.