How Do You Become A Day Trader At Home?
Day traders buy and sell high volumes of liquid stock and indexes during daily trading sessions, locking in generated profits from small market movements. Successful day traders are well versed in short term trading strategies and possess extensive marketplace knowledge. Generally, day traders are well situated financially to handle high volume trades; in addition, skilled day traders utilize leverage to increase trade volume capability. Though considered controversial to some, day trading creates market efficiency through arbitrage and market liquidity. Step 1 Assess the volatility and liquidity of your potential stock selection. It’s recommended that the security have high trade volume (liquidity) and a tight spread (difference between a securities bid and ask price). Use a stock’s daily price range to help ascertain the security’s potential trade risk and profitability. Step 2 Analyze the stock’s movement to determine the best point of entry. News, price action and order placement a
