Day traders generally use margin leverage; in the United States, Regulation T permits an initial maximum leverage of 2:1, but many brokers will permit 4:1 leverage as long as the leverage is reduced to 2:1 or less by the end of the trading day. In the United States, people who make more than 4 day trades per week are termed pattern day traders and are required to maintain $25,000 in equity in their accounts.[1] Since margin interest is typically only charged on overnight balances, the trader may pay no interest fees for the margin benefit, though still running the risk of a margin call. Margin interest rates are usually based on the broker's call.
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The sheer volume of forex trading makes it attractive for day traders. There are multiple short-term opportunities in a trending currency pair, and an unrivalled level of liquidity to ensure opening and closing trades is quick and slick. More suited to technical analysis, there are other ways to trade foreign exchange. In addition, forex has no central market. This means traders can make trades six days a week, 24 hours a day. They present a great starting point for entry level or aspiring traders with full time jobs. Traders in Australia might be specifically interested in trading the AUD USD pair.

Define and write down the conditions under which you'll enter a position. "Buy during uptrend" isn't specific enough. Something like this is much more specific and also testable: "Buy when price breaks above the upper trendline of a triangle pattern, where the triangle was preceded by an uptrend (at least one higher swing high and higher swing low before the triangle formed) on the two-minute chart in the first two hours of the trading day."
Day traders generally use margin leverage; in the United States, Regulation T permits an initial maximum leverage of 2:1, but many brokers will permit 4:1 leverage as long as the leverage is reduced to 2:1 or less by the end of the trading day. In the United States, people who make more than 4 day trades per week are termed pattern day traders and are required to maintain $25,000 in equity in their accounts.[1] Since margin interest is typically only charged on overnight balances, the trader may pay no interest fees for the margin benefit, though still running the risk of a margin call. Margin interest rates are usually based on the broker's call.
With over 50+ years of combined trading experience, Trading Strategy Guides offers trading guides and resources to educate traders in all walks of life and motivations. We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more. We provide content for over 100,000+ active followers and over 2,500+ members. Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. 
Liquidity - The liquidity of a market affects the performance of scalping. Each product within the market receives different spread, due to popularity differentials. The more liquid the markets and the products are, the tighter the spreads are. Some scalpers like to trade in a more liquid market since they can move in and out of large positions easily without adverse market impact. Other scalpers like to trade in less liquid markets, which typically have significantly larger bid-ask spreads. Whereas a scalper in a highly liquid market (for example, a market maintaining a one-penny spread) may take 10,000 shares to make a 3 cent gain ($300), a scalper in an illiquid market (for example, a market with a 25 cent spread) may take 500 shares for a 60 cent gain ($300). While there is theoretically more profit potential in a liquid market, it is also a "poker game" with many more professional players which can make it more difficult to anticipate future price action.
First, find the lowest point of the pullback to determine the “stop out” point. If the stock declines lower than this point, you should exit the trade in order to limit losses. Then find highest point of the recent uptrend. This becomes the profit target. If the stock hits your target price or higher, you should consider exiting at least a portion of your position, to lock in some gains.
Swing trading refers to the practice of trying to profit from market swings of a minimum of one day and as long as several weeks. In contrast to swing traders, day traders usually are in and out of the market in one day and trend traders often hold positions for several months. So, in terms of length of holding a trade, swing traders are in between day traders and trend traders.
Head over to websites like Reddit and you’ll see many trading dummies who will often fall at the strategy hurdle, taking the first momentum examples they see and losing money left, right and center. Savvy traders will employ day trading strategies in forex, grain futures and anything else they’re trading in, to give them an edge over the market. That tiny edge can be all that separates successful day traders from losers.

A scalp trader can look to make money in a variety of ways. One method is to have a set profit target amount per trade. This profit target should be relative to the price of the security and can range between .%1 - .25%. Another method is to track stocks breaking out to new intra-day highs or lows and utilizing Level II to capture as much profit as possible. This method requires an enormous amount of concentration and flawless order execution. Lastly, some scalp traders will follow the news and trade upcoming or current events that can cause increased volatility in a stock.

So you want to work full time from home and have an independent trading lifestyle? If so, you should know that turning part time trading into a profitable job with a liveable salary requires specialist tools and equipment to give you the necessary edge. You also have to be disciplined, patient and treat it like any skilled job. Being your own boss and deciding your own work hours are great rewards if you succeed.


The problem most new traders make is that they don't practice a strategy in a demo account, for several months or more, before risking real capital. Therefore, they have no idea how a strategy works, and how they need to adjust it when market conditions change. The demo accounts serves as a testing ground, where new traders can test out ideas, see what works and hone trading psychological skills (such as patience, discipline and focus).
Order execution: A novice needs to master the art of efficient order execution. A delayed or bad order can wipe out what little profit was earned and even result in a loss. Since the profit margin per trade is limited, the order execution has to be accurate. As mentioned above, this requires supporting systems such as Direct Access Trading and Level 2 quotations.
Cryptojacking is increasingly becoming a severe threat to business, even as the interest in cryptocurrency investment continues to explode. The term ‘cryptojacking’ refers to the stealth and illegal mining of cryptocurrencies through the installation of malware to gain the mining power of a computer without the knowledge and consent of an organisation or individual. High […]

A trader can measure their performance as a percentage of the trading channel width. The perfect trade would be buying at the bottom channel line and selling at the top channel line, which would be a 100% performance. If a trader captured one-half of the channel, it would be a 50% performance. The goal is to continually increase the performance percentage of the average winning trade.


Swing trading refers to the practice of trying to profit from market swings of a minimum of one day and as long as several weeks. In contrast to swing traders, day traders usually are in and out of the market in one day and trend traders often hold positions for several months. So, in terms of length of holding a trade, swing traders are in between day traders and trend traders.
First, find the lowest point of the pullback to determine the “stop out” point. If the stock declines lower than this point, you should exit the trade in order to limit losses. Then find highest point of the recent uptrend. This becomes the profit target. If the stock hits your target price or higher, you should consider exiting at least a portion of your position, to lock in some gains.

You're probably looking for deals and low prices, but stay away from penny stocks. These stocks are often illiquid, and chances of hitting a jackpot are often bleak. Many stocks trading under $5 a share become de-listed from major stock exchanges and are only tradable over-the-counter (OTC). Unless you see a real opportunity and have done your research, stay clear of these.
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