Day traders open positions on the exchange to turn a profit just before the closing of a trading day. It is prudent to study the best tactics before you start day trading and to know what the possibilities are with day trading. Doing so will help you to become a successful day trader and make money in Forex and trading stocks and commodities.
The trend is your best friend
With day trading the trend is your best friend, usually. The course of the trend doesn’t matter too much; you can make money trading in any direction the price is headed. When you go long you make money when the price goes up and when you short you can make money when the price goes down. Thus, all you need is movement to trade successfully.
In most cases its common sense to follow the trend. When the price is going up, buying is the best option. Otherwise you would lose money. But there are more and more people who trade against the trend. This can quickly go very bad and you should only do this when you have found clear clues that indicate a trend will turn shortly.
When you start as a day trader, going along with the trend or the masses is clearly the right choice. To successfully trade against the trend, your timing has to be impeccable and as a beginner you probably don’t have that timing quite yet.
Day trader by day...
Still have a job or simply don’t want to trade all day long? No worries, there are ways to trade (semi) automatically. First of all, you use orders. The position opens automatically when a certain value is reached. You can also use take-profit and stop-loss settings to take your profits and cut your losses automatically. You can look at the charts once a day and base your orders on this information. This way you can make money trading even while you’re at work.
If you want to trade automatically, then ZuluTrade might be the right choice for you. ZuluTrade offers you a way to follow the positions of experts. The only thing you need to do on this platform is select the providers you want to follow.
Get to work with your strategy!
The best thing to do is to just jump in and start practising. You’ll discover the best strategies once you’re already trading. Everyone trades in his/her own way and as a day trader you have a very large arsenal of possibilities and tools at your disposal. When you want to start trading yourself, check out our overview of the brokers with whom you can sign up for a free demo account right away.