Day trading as a new trend
A few years ago, the only people who could engage in active trading were those employed by big financial institutions and trading houses.
However, over the past several years, developments in internet trading and news broadcasting around the world have made it easier for people to actively engage in trading.
But like any other talent, trading can be learned, and working with a seasoned mentor will speed up the process. Successful day trading depends on having solid short-term tactics and having the discipline to stick to your plan.
Before beginning trading, you can learn how to trade through a relevant trading programme.
What do you mean by Day Trading?
Day trading is a widespread practice in the stock market and foreign exchange markets. The act of buying and selling a financial asset during a single trading day is known as day trading.
Although it can happen anywhere, the stock and foreign exchange (forex) markets are where it happens most frequently. Most day traders have a strong financial foundation and education.
Why should you take an interest in day trading?
Here are some pros of day trading that you should consider before beginning-
- Find out the results instantly- if the trade moves in your way, you make a profit and if it moves against you lose your investment.
- No minimum deposit- To start a day trading business, you do not need a lot of capital. These days, most brokers do not set a minimum deposit, so you can start trading with any amount you can afford to spend.
- Development of new skills- Both data analysis and interpreting graphs are useful abilities for day traders and help in the development of great analysis and risk-taking skills.
Is trading legal in the UK?
In the UK, day trading is not prohibited. Every time there is an open market, you are free to open as many daily trades as you want. Nevertheless, it is crucial to confirm that the broker you are using is regulated.
You might have access to hundreds of marketplaces worldwide as a trader who engages in day trading from the UK.
Your broker will choose the exact number of markets that are accessible to you. In most situations, you will be able to trade on
- Digital currencies
- Foreign exchange
- Derivative contracts
If you live in the UK, you have a significant edge because you can day trade on all major trading days, including US, European, and Asian markets. The overlap between London and New York is another fantastic time for day trading in the UK.
Trading activity usually peaks when US markets start at 8:00 Eastern Time. When the UK markets close at 4:00 PM London time, the London-New York time overlap ends as well.
Therefore, you should start looking for relevant day trading courses right away!