In olden times day trading was only accessible by banks as they had the full access to the census and market conditions. But Now with the help of internet boom and developed technology there has been an increase in the no of individual traders as they now have direct access to the complete market data and census which in turn help them to earn big bucks that too at very low investment.
What exactly is Day Trading?
Well a lot of new traders have this common question In mind well actually there are many different types of day trading these days depending upon various individuals and there style of working. We can segregate Day trading into two different types:
A. Short Term Day Trading
B. Long Term Day trading
Short Term Day trading here refers to the holding of the shares for just few minutes and seconds and then selling them off. In this kind there is not much of benefit but still is a safer game and 90 Percent beneficial.
Long Term Day trading on the other hand is along term or in simple words is referred to the holding of shares for few hours this is a more of a risky game but yet much more beneficial than the short-term trading.
This all is possible because the concept of day trading has been made in a very flexible manner as there can be trading done for a few minutes to few hours depending on the condition of the trade whether it is in profit or loss.
To further categories Day trading we segregate it into Trend Trades, Counter-trend Trades and Ranging Trades. In Trend Trading the trade is done according to the current market position i.e. if the buying price of the share rises then the trend traders buy them and sell them once it reaches the peak. On the other hand Counter Trend Trades are just the opposite as they sell the share if the price starts rising. But Ranging trades are those in which there is a continuous buying and selling of the shares specially when the market is either very active or very dormant. The professional day traders often go with a single kind of trading trend but few of the flock take various kinds according to the market position. And to add on to it different day traders trade differently as few of them prefer trading in many trades in one day but other few trade patiently on few selective trades according to the preferable conditions.
For Day trading it is also very important for one to know about the market and to study well the market conditions and trends. Day trading though can be practiced amongst few types of trading markets like futures, options, currencies and stock markets. Amongst these markets there are further different groups of which are based on the stock indexes for e.g. Dow Jones and DAX , then currency exchanges like Euro or US Dollar Exchange market. The day traders can reach these markets through Direct Access Brokers who provide faster and cheap trade execution. So if looking for trying your hand in Day Trading then you have to definitely Know the trends and ways of the market and select your kind and style of trading for beneficial returns