What Day Trading Field to Pick

in Day-trading

After a day trader knows the basics about day trading and assets that can be exchanged in the market, he now has to choose what trading to engage in. There are actually several markets available but it is advisable that the day trader choose one or two to concentrate on. The 3 well-liked markets to pick from are forex, financial futures and stocks. Day traders usually have their eyes on foreign exchange and stock trading. The market that a day trader picks should suit his financial position in life and standard of living.

Forex involves dealing world currencies and this is also known as foreign exchange. Presently, there are four leading pair of foreign currencies and these are Euro-US dollar, US dollar-Japanese yen, British pound-US dollar and US dollar-Swiss franc. From hour and hour, deviation in forex rate occur and these differences enable the day traders to gain money. Taking into account that forex trading is available to day trader Five days weekly and Twenty four hours daily, it must be the largest and most liquid market in the world. Adjustments to a day trader’s trading system can be done straight away according to the latest news due to the 24-hour feature of this market. The liquidity of the foreign exchange market enables it to have stable price movements.

Trading volume in fx trading is higher in contrast to other markets’ mainly because of the number of day traders globally who are into trading currencies. Forex trading permits a day trader to borrow a bigger amount of money as additional funding. Leverage is the the word used for this borrowed money. With good fortune and skill, this leverage will enable the day trader to gain more in this market.

A day trader may additionally participate in stock trading. However, this market does not trade 24 hours a day. Day trading with stocks is fixed to some business hours. In comparison with foreign exchange, it has a lower trading volume and this makes this market more inclined to liquidity risks. The aforementioned make volatile movements of stock prices.

Trading with stocks is also called by a few as equity trading. Stock and equity trading can be utilized interchangeably based on a popular day trading blog but the key dissimilarity lies in their investment choices. For additional information on stock and equity trading, refer to a day trading blog. Choose a day trading blog that can describe the difference between these two accurately and concisely.

Author Box
John Smith has 18 articles online

Practice makes perfect. No matter which field in trading you choose, you can never go wrong if you practice your trading skills with the aid of a Day Trading Simulator.

Add New Comment

What Day Trading Field to Pick

Log in or Create Account to post a comment.
Security Code: Captcha Image Change Image
This article was published on 2012/02/28