Sunday, June 3, 2012

Stake Your Claim! ? A Beginner's Guide To Day Training

by Ashley Houston

Lots of people don?t really know the financial terms like currency, forex, trading, etc. It?s a big complex financial world and one of the new trading concepts is day trading.

With day trading, you buy and sell securities, stock, and other financial investments within one trading day. It will cover a wide variety of financial products like stocks, currencies, forex, equity index, futures, and commodities.

So the financial products that are bought should only be held with a trading day and should be sold at the end of the trading day.

Due to the short time period in which to buy and sell stocks, day trading is considered risky. If you are interested in day trading, be prepared to have sufficient capital. You would need to purchase at least 1000 shares of a stock. Be prepared for this capital to be expendable.

Day trading may be risky, but you get big rewards if you know how to do it. Most day traders don?t get emotional with any stock. They should know when to cut their losses when the need arises as well as able to analyze the current market trend particularly in the short term.

Day trading has a very good advantage, which is the 50 to 1 intraday margin. So you can trade up to 50 times your initial capital.

Now, what if you don?t have the capital to invest in day trading? There are day trading currencies that you can try. Trading currencies requires less capital. You?d only need a few hundred dollars to open a forex mini account.

The bad thing about day trading is that the stock market is only open for 8 hours daily. For currency trading, the forex market is never closed. This means you?re free to trade at any time of the day.

Another day trading currencies advantage is that most day traders can get an intraday margin of 4. So with the same capital, you could trade up to four times your capital. For example if you have a capital of $10,000, you can trade up to $40,000. This would give you more leverage if you want to buy higher price currencies.

Day trading currencies are easier to monitor and predict then stocks because there are less of them, not to mention that there are less factors that influence the global forex market.

You can lose much and win much in a single day in day trading, so don?t engage in it until you have enough experience and knowledge in the stock or forex markets. Wise and quick decision making is needed as well as the usual stock research analysis, market analysis etc.

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