Day trading with shares - Is it easier to make money?

Day trading and investing are two different beasts. Most day traders use technical analysis to make trading decisions, while investors use fundamental analysis to select their investments.

Technical analysis involves using market data, such as how the price has changed over time and the number of stocks traded over time. Technical analysts identify trends in this data to find profitable trading decisions.

At the risk of oversimplifying, here's a basic example. If someone asked you which way this stock was going to move in the next month, what would you say?

It is not a trick question. Most of you answered "up", which is generally the right answer. This is a simplified version of what technical analysts do for a living.

They analyse price charts of stocks and other financial assets, trying to determine not only where the stock is headed, but how far it will go, how much the price will bounce on its way up and down, and how likely their analysis is to be correct.

In the exercise above, we have chosen the direction in which the Apple share is likely to move in a month's time. Day traders take this a step further. They use charts that show minute-by-minute price changes and perform quick technical analysis to profit from these rapid price changes.

They try to buy (or short) a stock and then sell it 5, 20, 60 minutes later at a slightly higher price. The profits on each trade are usually quite small, but day traders make up for this by making several trades a day. I have met traders who make over a hundred trades a day and trade almost a million shares a day.

Tools of the trade

Day traders need better tools than swing traders. They need speed, accuracy, reliability and customisation.

Platform

Instead of filling out an order ticker like you do when investing in a stock, day traders use keyboard macros or "hotkeys" to buy or sell a block of stock with the press of their keyboard. Most trading platforms do not support this feature, so most day traders use subscriptions to software tailored to their needs, such as xStation 5 or MetaTrader. Here is exa,ple form exnessthai: ด้านบนเป็นตัวอย่างของ MetaTrader ซึ่งเป็นแพลตฟอร์มการซื้อขายวันที่ได้รับความนิยมจาก โหลด mt4 exness ซึ่งฟรีอย่างสมบูรณ์นํามาซึ่งเครื่องมือวิเคราะห์เครื่องมือวาดภาพการตั้งค่าแผนภูมิข่าวการตลาดและแบบฝึกหัดที่เป็นประโยชน์มากมาย.

Above is an example of MetaTrader, a popular day trading platform from Exness, which is completely free, brings with it many analytical tools, drawing tools, charting settings, market news and helpful tutorials.

Conclusion: Making money with shares is possible with many methods

Making money with stocks is a great way to add extra income to your personal balance sheet, whether you are investing for the long term or day trading. In the end, however, you have to figure out your personal trading style yourself. The best way to do this is with a stock demo account with virtual credit.

The key is to take it slow, learn the ropes and gain some confidence. Learning how not to lose money is just as important as learning how to make money.