Day Trading

There are many reasons why day trading has been the preferred style of forex trading for many investors. Apart from the obvious benefits that it promises, such as sizable earnings with minimal risk, there are other very significant advantages that day trading offers to investors, such as:

100% Cash at Beginning and Close – Day traders are able to sleep in peace through the night simply because of the fact that they dispose of all their stock positions at the end of the day. This comprehensively eliminates the likelihood that their positions will be subjected to fluctuations overnight that are usually the result of market changing factors and events.

Twice The Buying Power – Once the day traders have successfully refined their system, they are allowed roughly four times their account equity in intraday buying power which results in a significantly higher number of trading opportunities. This leverage can prove to be very useful for investors who have comprehensive knowledge on how to harness risks.

Interest on Overnight Cash Balance – Most forex trading brokers deposit investor money in an interest bearing account. Having cash in the account entitles investors to interest which is generally paid on their overnight cash balance.

Collect a Statistically Meaningful Sample Size – Day traders enjoy a much higher number of trading opportunities which means that they are able to gather faster access to a significantly larger sample size. This is vital for investors who want to learn how to trade well since a handsome sample size is ideal for beginners to delve into in order to start learning.

You Can Completely Ignore the News – Most stock investors are mostly on their toes regarding latest news update and developing events in the market. Day traders are excused from such worries for the fact that a great majority of the news that potentially affects price movements is published after close of trading hours. Therefore, where other investors would be devastated by negative news, day traders may simply see it as trivia for the fact that they never secure a position overnight.

Traders can start with small venture investment – Unlike other investment markets, day traders are not required to commit large sums of money simply to start trading. This makes the markets profitability available to small-time investors who initially lack financial resources but are dedicated to increasing them over time.

Shorter trading time – Unlike other commodity trading markets, forex trading (day trading) is intraday, meaning that all the trades are disposed of in a single trading day. As a result, day traders do not need to pay attention to fundamental forex analyses and stringent research like a position trader does since day trades are typically closed within the day.

Higher Leverage – Day trading promises a higher leverage to customers as compared to other investment markets. Day traders are allowed a leverage of 50:1 to 500:1. This essentially means that a day trader has the potential to multiply returns on investment by a staggering 50 to 500 times in the event that the trade bears good fruit.

There are many reasons why day trading has been the preferred style of forex trading for many investors. Apart from the obvious benefits that it promises, such as sizable earnings with minimal risk, there are other very significant advantages that day trading offers to investors, such as:

100% Cash at Beginning and Close – Day traders are able to sleep in peace through the night simply because of the fact that they dispose of all their stock positions at the end of the day. This comprehensively eliminates the likelihood that their positions will be subjected to fluctuations overnight that are usually the result of market changing factors and events.

Twice The Buying Power – Once the day traders have successfully refined their system, they are allowed roughly four times their account equity in intraday buying power which results in a significantly higher number of trading opportunities. This leverage can prove to be very useful for investors who have comprehensive knowledge on how to harness risks.

Interest on Overnight Cash Balance – Most forex trading brokers deposit investor money in an interest bearing account. Having cash in the account entitles investors to interest which is generally paid on their overnight cash balance.

Collect a Statistically Meaningful Sample Size – Day traders enjoy a much higher number of trading opportunities which means that they are able to gather faster access to a significantly larger sample size. This is vital for investors who want to learn how to trade well since a handsome sample size is ideal for beginners to delve into in order to start learning.

You Can Completely Ignore the News – Most stock investors are mostly on their toes regarding latest news update and developing events in the market. Day traders are excused from such worries for the fact that a great majority of the news that potentially affects price movements is published after close of trading hours. Therefore, where other investors would be devastated by negative news, day traders may simply see it as trivia for the fact that they never secure a position overnight.

Traders can start with small venture investment – Unlike other investment markets, day traders are not required to commit large sums of money simply to start trading. This makes the markets profitability available to small-time investors who initially lack financial resources but are dedicated to increasing them over time.

Shorter trading time – Unlike other commodity trading markets, forex trading (day trading) is intraday, meaning that all the trades are disposed of in a single trading day. As a result, day traders do not need to pay attention to fundamental forex analyses and stringent research like a position trader does since day trades are typically closed within the day.

Higher Leverage – Day trading promises a higher leverage to customers as compared to other investment markets. Day traders are allowed a leverage of 50:1 to 500:1. This essentially means that a day trader has the potential to multiply returns on investment by a staggering 50 to 500 times in the event that the trade bears good fruit.

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