The difference between day traders and normal traders lies in the fact that a day trader closes his position at the end of the day and does not take it into the night. On the one hand this reduces the risk. Another important factor is the country were you invest, and the different types of instruments you would like to use such as one of the many Forex trading brokers in Mexico
After all, stock markets around the world open at different times, so things that happen on the other side of the world can affect the value of financial titles that are owned, without the trader being able to intervene. In jargon, this is called ‘overnight risk’. And so the day trader closes every day to take a new position the next day.
Nowadays, there are trading houses that employ day-traders and, since there is broadband, it is also possible to trade from home. This is done via an online broker. You can also see day traders working in trading houses. There they hire an office and trading facilities. By the way, you see the latter more in America and less in Europe. Day Trading requires constant sharpness and focus and, moreover, it is ‘forbidden’ to think about tomorrow. Day Trading today is all that matters. What comes tomorrow will be seen tomorrow.
Daytrading: A way of life
Day Trading is not something one just does. It has to be flown in as if it were work. Moreover, it must be done systematically. Daytrading is something other than a relaxing pastime, it requires commitment. People who act during lunch or in the peace and quiet while playing football lose their money. Because of the very short timeframe of one day at most, it is important that the trader is on top and can take action at all times. Day Trading could be called a way of life, you don’t just do it. A day trader will never take more than a few positions at a time. A person simply can’t keep track of many different things at the same time.
How does day trading work?
Day trading is trading in securities on a daily basis. The intention is to make optimal use of price fluctuations during the trading day. Day trading is often romanticised. Many people have the impression that thousands of euros are being earned from behind the computer just like that, rather carelessly and easily. In reality, however, it is not that simple say the experts of worldwide broker website C-TradeAlert.com
Nowadays, the trader is fighting against complex and sophisticated algorithms, which is a bit like an unfair fight. Algorithms react faster than humans will ever be able to. Daytraders close at the end of the day to avoid risks. And so daytraders take new positions every day. And no one can really say a meaningful word about day traders’ profits. Even scientific research cannot tell exactly whether day traders make a profit or a loss. It only adds to the myth surrounding daytraders.