Making Money As A Day Trader

day-trading

In the past, making enough money from home to live on was nearly unheard of. However, these days, it’s becoming a more popular concept. The reality is that through technological advances, the concept of making your living from the comfort of your own home has become more attainable. One of the best ways to do so is through day trading. Today, we’ll talk about what day trading is, what vehicles you can use for day trading, and a few strategies that can help you become a profitable day trader.

What Is Day Trading
Day trading is a form of investing. However, as the name would suggest, the ultimate goal is to earn a profit over the course of a day instead of letting money sit around for months, years, or even decades. Therefore, day traders focus on high return investment vehicles (we’ll give examples below) as well as what is known as momentum stocks; or stocks that are likely to move more than 10% in a single day. Day Trading Vehicles There are several different day trading vehicles available these days.

The most commonly used are…
Binary Options – Binary options are by far the easiest to understand in terms of day trading vehicles. With binary options, investors aren’t purchasing stocks, commodities, or currencies. As a matter of fact, no assets or portions of assets are purchased at all. Instead, binary options traders make predictions with regard to the direction the values of assets are likely to move. If the predictions are correct, binary options traders have the potential to earn up to 80% returns on their investments. Adversely, if predictions are incorrect, the traders walk away with a loss. Because of the simplicity involved in trading and overwhelmingly high returns associated with binary options, this is the number one investment vehicle among day traders.

Forex – Forex trading is the process of trading currencies. Since currencies are the highest demand assets in the world, we tend to see quite a bit of fluctuation in the foreign exchange market; leading to several opportunities on a daily basis. However, it’s also important to remember that the high volatility in the forex market also makes it a relatively risky place to be. So, if you plan on giving this trading vehicle a shot, it’s important to do your research first!

Momentum Stocks – Finally,  momentum stocks are incredibly popular among day traders. Momentum stocks are stocks that are likely to make big moves in the market over a short period of time. This generally happens after the release of earnings reports, product launches, or appointments of new managing members. Because stocks tend to move at a slower rate, momentum stock opportunities can be difficult to find. However, there’s a science to do so; and if you get that science down, it can prove to be an incredibly lucrative endeavor. Day Trading Strategies There are several strategies that day traders employ in order to become profitable. Some of my favorite strategies include…

Binary Options Strategies Correlation Strategy – The correlation strategy takes into account the fact that many assets have positive or negative correlations; meaning that they move in tandem or against each other respectively. By taking advantage of the correlation strategy in binary options, traders have the ability to make multiple trades around a single event; ultimately increasing their potential profit. Support & Resistance –

The support and resistance strategy is a technical trading strategy that’s based on trend lines. Essentially, the point at which an asset’s price reaches the floor and shoots back up is known as support. The point at which an asset’s price hits the ceiling and starts to fall is known as resistance. Therefore, by making a prediction that an asset is likely to climb after reach support or fall after reach resistance, the binary options trader has an advantage when making trades.

Forex Trading Strategies Spread Betting – Spread betting is a process that involves making a bet on the price movement of currency pairs. Essentially a spread is the difference between the bid and the ask price. When spread betting, traders make predictions as to whether or not the currency pair will fall lower than the bid price or higher than the ask price. In this particular case, traders do not actually own the currency or currencies involved.

Mirror Trading – Mirror trading is a very simple strategy in which traders make trades that mirror the moves of successful forex traders. Momentum Trading Strategies Trading With The News – This is the best strategy to use when momentum trading.

Trading with the news is the process of using economic calendars to pinpoint when events that are likely to make big moves in the market are going to happen. Once events are spotted, traders make sure that they are available when the news breaks to take advantage of the resulting momentous movement. Final Thoughts While making enough money from home may seem like it is far out of reach, many people are surprised out how attainable the goal actually is. So, if your dream is to work from home, stop dreaming and start doing with day trading!

Related posts:

Leave a Reply

Your email address will not be published. Required fields are marked *