DOWNLOAD HOW TO DAY TRADE FOR A LIVING PDF
Day trading is the most basic trading strategy and it is believed that everyone must understand this strategy. If you already know the basics of this strategy, you can improve your skills of using it. You cannot build a good trading strategy and be successful in the forex market with no knowledge. So, in this article, we will dig deeper into how to day trade for a living and some PDF materials to download.
Day trading is known as transactions of asking and bidding that can be done in a small period of time.
If you take a deeper look, day trading is ask and bid order which is finished in a day time, however, sometimes, it takes several days or even months to be executed.
Normally, this type of trade is performed by forex brokers but due to the internet, nowadays, small traders are also able to make these transactions.
Advantages of day trading
Many traders choose day trading strategy because it has many great advantages.
First of all, it is super flexible. You can carry out that strategy anywhere you like, as long as you have working Internet. You can day trade on a beach, on your bed, on the porch, in a bar, or even in the bathroom. The time frame is unlimited. You can be done by 10 a.m in the morning and then enjoy the rest of your day care-free. It is also less costly because you don't have to pay for swap.
Master day trading strategy
The power of a company is not the interest of day traders when deciding to possess the company’s stocks or bonds. However, they are more focusing on the movement of the prices in the market and the analysis of technical indicators.
Day trading is available in many forms of trading such as stocks, options, futures contracts, currency pairs and other financial products. Of course this trading strategy has pros and cons.
The first pros is that you can make money within a day. A big volume of trading can bring you big money and optimate your benefits. Traders using huge trading volume to earn benefit from such a very small movement in the market.
There are two primary tasks of day trading including making the market working efficient and bringing more liquidity.
The cons of this strategy is that it works very fast and at high frequency. Traders are very easy to get dizzy. This leads to losing money as you breaks your trading strategy and discipline.
However, traders with skills, courage and a good risk management plan can play with this strategy. In such high trading frequency, traders use the computer to place a very big number of trading in the market.
Trading desk is a computer which helps traders to place many trading orders to the market when big movements happen.
Analysis software is very expensive that individual traders cannot afford. But those who use analysis software focus on the benefits of technical analysis rather than reading the news.
Day trading is very risky, this is the reason why you do not invest everything you have in this single strategy. Day traders are suggested to have another fund to support when they lose.
Traders must have traits
To become a successful day trader you must have a deep knowledge on this trading strategy. The charts sometimes make you confused. This is the reason why deep understanding on the basic of trading can help you to make accurate decisions in hard times
The second trait is discipline, it is considered the most important factor in forex trading in general and in day trading in particular. Without sticking to the discipline, you can easily lose control and make bad decisions.
There is no tolerance to those kinds of mistakes.
Books about Day trading
In order to trade forex successfully, you must never stop learning from the best. This market changes from times to times and the best way to cope with it is preparing yourself with the experience and knowledge from the most successful traders in this field. Check out the best books for day traders:
- Mastering The Trade by John F. Carter
- Day Trading and Swing Trading the Currency Market by Kathy Lien
- The Disciplined Trader by Mark Douglas
Download all forex trading strategies PDF here.
The best forex brokers to day trade for a living
To day trade for a living, you need to find the brokers with features that are most suitable for day trading. Since you open and close your positions within a day, you don't have to worry about swap. What you need is low spread and low commission. Moreover, that broker needs to have a strong server in order to execute your orders faster and better. Here are 3 forex brokers that are the best for day traidng:
In short, in this article, I give you the knowledge on how to day trade for a living and traits as well as tools that you need to obtain if you want to be successful with day trading. Remember that it is a high-speed trading so you need to have a good reaction to any change in the forex market.