Day trading is short trades on the stock exchange that are concluded and closed during one trading session. They are held during one trading day and are not carried over to the next, regardless of the result. The trader himself ensures that the exit was made before the end of the session. Therefore, it is important to avoid distractions.
Traders, increasing the profitability of their transactions, enjoy margin trading. But it is usually accompanied by increased risk. For day-to-day transactions, the emphasis is much more on technical analysis than on fundamental stock market analysis. The assets used by day trading are not very different from other trading tactics. The main difference can be called the terms of transactions and highly liquid assets. Short-term deals do not bring as much profit as medium and long-term, so experienced traders rely on the number and speed of transactions. The main thing in day trading is to close all positions by the end of the day. And to understand what and how to do it, you need to keep in mind the best day traders to follow. You can look at Steve Burns’s blog. It offers different strategies for day trading. Peter Brandt gives useful advice on this type of investment. This method of bidding relies not on substantial price fluctuations but a substantial number of different price changes. For this reason, the number of transactions a trader who uses an in-day strategy may exceed a hundred. To get the maximum income during the trading day, you need to choose the most volatile assets or those that are characterized by bright trends. Significant fluctuations promise higher profits. Using such a strategy is very profitable with the help of well-known brokers. In particular, Interactive Brokers.
In general, all traders advise to draw up a clear plan of their actions and strictly follow it. Before you open a position, you need to think about the time of exit from it and understand how the stop loss will occur when you need to fix the income. Before choosing this strategy, it is worth assessing whether you have the opportunity to devote enough force to trade. It will be effective only if the trader can concentrate. It is important to take risks that are justified. Since trading shares within a day is associated with high risk, you should not invest more than 1–3% in one transaction. In case of loss, losses will be small, which will allow us to conduct more efficient trading in the future.