Over the last years, trading has been surging in popularity. Day trading in particular is one of the most popular strategies when it comes to buying and selling assets. The strategy can be a fun and exciting one, and if you are performing well, you might even profit from it. However, profits are no guarantee. To be successful, you must start from scratch and complete all the basic steps.
You must get to know your needs, gain knowledge of your market and choose the right broker and platform. Today, there are lots of UK day trading platforms, and one of the most important steps is to find the one that is best for you. In this article, we will guide you through the start of your day trading journey!
What is Day Trading?
Let us start from the beginning. When you choose to begin with day trading, you have decided that you are interested in a short-term trading strategy, because that is just what day trading is. You buy and sell multiple assets over a day, which means you do not have to hold any positions overnight.
Choose and get to Know Your Market
Knowledge is power – a phrase especially suitable when it comes to day trading. To be successful, you can not open trades wearing a blindfold. You must gain an understanding of your market of choice. This can be done by reading newspapers or listening to podcasts, and then analyzing charts.
So, which market should you get to know? Here are four of the most popular ones.
- Stocks
- Forex
- Cryptocurrencies
- Commodities
Compare Day Trading Brokers
As mentioned earlier, finding the right platform for day trading is one of the most important steps in the beginning. Below, we list four factors to keep in mind while comparing brokers and choosing your platform.
Regulation
Before you do anything else, you want to make sure you choose a broker regulated by the FCA (Financial Conduct Authority). With a license from the UK regulator, you and your assets will be in safe hands.
Speed
Day trading is one of the most fast-paced strategies out there. You will open and close positions multiple times every day. Therefore, your broker should offer fast executions. This makes it possible to buy or sell at the exact price you want.
Costs
Trading can be profitable, but it will also cost you. When making a trade, for example, your broker will charge you a fee. It probably goes without saying you want to find a broker with as low fees as possible.
Support
It does not matter if you are a beginner or an expert – while trading, one or two questions will cross your mind. To get fast answers, you should choose a broker who prioritizes customer support.
What Kind of Day Trader are You?
In trading, there are very few right or wrongs. It all comes down to what strategy, position and platform suit you. Therefore, you should always ask yourself what kind of trader you are, and make your decisions based on the answer you get.
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