Most people think of the stock market when they hear the term " day trader. If you want to become a day trader, before you start you'll need to choose a market.
Focus your learning and practice time on that single market in order to excel at it. Once you master one market trading other markets should be easier.
That said, new day traders should pick and master one market before attempting to trade others. Here are things you should know about of trading stocks, futures and forex. This knowledge will help you decide which market works best for your lifestyle, constraints and goals. Based on the these factors you'll likely be able to see if the stock market is a reasonable market for you to day trade. If you can't trade between the hours of 8: Many day traders trade the same stock every day , regardless of what is occurring in the world.
Once you know a stock trading strategy , little additional research time is required for this method, since you are always trading the same stock. Other traders focus on stocks of high interest on a particular day.
This takes a bit more research and digging each day. If you're thinking of day trading futures , here are things you should know. Based on these factors alone you'll likely be able to see if the futures market is a reasonable market for you to day trade.
If you can't, there are other options. Consider day trading a global commodity which sees movement around the clock, or futures associated with Europe or Asia. European and Asian futures contracts present opportunity before the US stock market open, and after the US close, respectively. If you're thinking of day trading forex , here are things you should know. Based on these factors you can likely determine if the forex market suits you.
Forex is flexible in that you can trade outside of US market hours; that helps if you have another job during normal business hours. Now that you know some of the basic entry requirements for each market you can start digging into the one that suits your life, and interests you, the most.
Constraints play a role. If you want to day trade stocks, but have minimal funds, consider forex or futures instead. All three markets offer great income potential, but one may have certain elements which appeal to you more. Select your market, and become a master of it. Updated February 15, Day Trading Forex If you're thinking of day trading forex , here are things you should know.
Not all these times are ideal for day trading though. Best times to day trade forex depends on the pair being traded. Which Market to Day Trade Now that you know some of the basic entry requirements for each market you can start digging into the one that suits your life, and interests you, the most.More...