While there are many methods for investing in the financial markets, more and more traders are turning to day trading. This investment strategy is an active trading technique that allows you to take advantage of market movements over a trading day. Find out in this guide what day trading is and how to start for beginners.


As the name suggests, day trading is a strategy that involves the buying and selling of financial assets within the same day. The day trader therefore generally takes advantage of small price movements to speculate on the evolution of an asset from a few minutes to a few hours.


Day trading is one of the trading techniques that require the most attention and availability. Indeed, you must be in front of your screens to take advantage of every trading opportunity that arises during a trading day.


The main goal is not to pay overnight fees, also called rollover or swap fees. These fees must generally be paid to your broker when you hold a position overnight.


A method of intraday trading, day trading typically relies on leveraged products and margin trading to amplify market movements. CFDs or Contracts For Difference are one of the most popular financial derivative products for investors who have short-term strategies.


CFDs act like a financial contract between you and your broker to exchange the value of an asset between the opening price and the closing price of a position. Thus, you do not own the underlying asset that the CFD relates to. You are only speculating on the variation of its price.


Also, online CFD brokers are generally good platforms. They offer plenty of markets, robust trading platforms, and reasonable trading fees. You still have to use the right broker…


In which markets can I day trade?

Day trading is a strategy of taking advantage of price movements during a trading session without holding open positions overnight. Thus, it is possible to day trade on any market available through your broker. Among the most popular are:


Shares

forex

clues

crypto currencies

Raw materials

How to day trade: tutorial

But how to day trade and where to start if you are a complete beginner? In the steps below, we explain the process to start day trading in a few simple steps with our recommended broker eToro.


Step 1: Choose a day trading broker

Since day trading requires a certain reactivity, your broker must be able to offer fast execution times. Depending on your day trading strategy, the tools and indicators you need should also be available in the trading platform.


It should be remembered that a day trader takes many positions per day. Thus, brokerage fees such as the spread, which is the difference between the bid price and the ask price, must be as low as possible.






 to be continued......