If you are looking for additional ways to make money in order to supplement your income from your job or business, then trading and investment are probably concepts that are already on your radar. A lot of people are now using different ways of trading on markets like forex, CFDs and of course the stock market to try and gain profits out of market fluctuations.
Of course, there are lots of different trading approaches that can yield a profit if your analysis and strategy are sound, however the general approach that tends to most interest people looking to trade as a profit-generating sideline is day trading. Day trading involves taking short term positions that aim to make a profit within a single session, as opposed to taking longer term positions. This makes day trading quite exciting, and also easy to fit around your other money making activities as you don’t have to keep an eye on prices outside of your trading sessions to see how things you hold are moving. You can do it at your computer, or through mobile apps that can connect you to your trading platform and allow you to make real time trades on the go, making it very convenient.
So, if you are interested in using day trading as a way to get more from your money, and you have some capital you want to use to make your first trades, what else do you need to get started?
Choosing Markets and Your Trading Platform
It is possible to day trade in all kinds of different markets. Most people choose either a stock exchange, pairs of foreign currencies (forex), or opt for contracts for difference trading (CFDs), where instead of trading the items themselves you take positions based on how you predict the prices of stocks, commodities or currencies will move during the session. These all have the potential for you to make money and have their own advantages, for example forex can be a good choice if you want to have your trading sessions outside of standard business hours due to its international nature, and CFDs can be interesting because they can allow you to profit from something actually losing money.
Research the options and choose the one that you find most appealing, and then look for a reputable trading platform that offers it, for example ETX Capital. Apply for an account with your chosen platform, connect up their mobile app if you want to trade from your mobile devices too, and you are – from a practical perspective – ready to trade.
Learning to Trade and Setting Your Strategy
How to perform and read market analysis and understand trading insights will be different depending on the type of day trading you have chosen to do. However, most platforms include plenty of educational resources designed to help new day traders, and there are also many great beginner guides online. There can be a learning curve involved with trading, and for the most part it is OK to learn as you go, as long as you first learn about setting a trading strategy and create one you will stick to.
A trading strategy will include things like your entry and exit points for a trade, and when and how long sessions will be. If you do this part well and are rigid about sticking to the strategy you have made, avoiding emotional trading, you will be managing risk and avoiding the potential for unacceptable losses while you are developing your skills.
Day trading can be fascinating and profitable, and is very accessible thanks to online trading technology, so why not start working on adding some trading to your money management approach?