Day trading is a trading processor trading done and completed in a day. That is, a day trader will buy the stock and resell the stock that has been purchased within the same day, in the hope of making a profit. cfd trading is a stock investment strategy that is very risky, more properly referred to as speculation. Usually, a day trader will do a lot of stock buying and sell in a day. Some of these transactions will generate profits, and some will lose. If a transaction earns more profit than an adverse transaction then the day trader earns a profit on that day. If that happens otherwise, then the day trader will lose money. For this reason, most people who choose the profession as a day trader are experienced.
Some investors choose to be day trader because of the flexibility offered. You do not have to buy a stock and keep it for a long time and worry whether the price will go up or down. The shares you buy will be sold on the same day, so you will know at the end of the day whether you gain any profit or loss from the stock you buy. For this reason, shares traded by day traders are generally stocks that are volatile. By performing fundamental analysis but more technical analysis, a day trader will move very quickly in buying or selling stocks to make a profit. Sometimes in just a few minutes, the purchased shares will soon be sold again.
In addition, day trading also allows you to work anytime as you wish and your time, although for stock transactions you can only do it when the stock market is still open. For day trading forex transactions, you can make transactions anytime because the forex market is open 24 hours a day.
What is most important to be a day trader. What you need to understand before deciding to become a day trader is that loss is a matter of course for a trader. Of the 10 transactions, you can lose 3 times and win 7 times, and if the transaction amount is the same, you still get a profit. Of course, the number of transactions is also influential therefore you need to be careful in buying a large number of shares.
In addition, you should also have the ability to analyze stock charts. Because when you do day trading transactions, you have to move very fast and there is no time to ask others what to do. You must have the ability to assess whether the price of a stock will rise or fall, by studying the patterns (patterns) of stock charts that exist.