See the video at the bottom for the best kept secret!
Hey there here is my second post and I thought I would address this simple question: which if you haven't got involved in trading why would start now and how does daytrading work? What is day trading? How does it work? What is it all about? Okay let's explain from the very very beginning so trading as you may be aware is when you're buying or selling something. You're buying with the expectation of it going up you're selling it with the expectation of going down.
Go and check out the videos on long and short to get the difference but fundamentally that is what we're doing, okay? But let's stick just with the buy for now to make it easier so not complicating things with going sure so as a trader we can buy an instrument bill market that we think is going up that could be a currency that could be a commodity such as crude oil or gold corn it could be a group of stocks known as an index at footsie 100 is a 100 shares inthe UK you've got the back 30 you've got the Dow 30 a variety of
Different indices and that's kind of a popular thing people to trade you've got interest rates you've got stocks individual stocks like Apple and shares and UK like vodafone Tesco's fundamentally what we're doing is we're looking to buy something at the low side and sell it when it gets higherup for a profit that is ultimately what we're trying to do now as traders we can then do what's called day trading now day trading is basically saying hey I will open and close all of my trades within a day period so the advantages of that are you're not taking any overnight risk that disadvantages are you can only capture the move in the day so day traders tend to be a lot more frequently trade frequent traders tend to do multiple trade a day in the same instrument or multiple instruments but they also tend to do it has to use what's called margin which is gut and
check out a video for a more deeper explanation
I've done a video on it
Before ultimately means that you're
getting more leverage on your money so you knowif you put down a thousand
pounds you're probably going to be able to buy tenthousand pounds worth of
stock or even a hundred thousand pounds worth of currency so it means if it
moves you know one percent we're getting a much more move so it makes day
trading possible it's very difficult to datewhere you get about that much money
and
