Day trading just as the name suggests is whereby traders make dozens of trades in one day and it depends on the technical analysis of the charting system. The objective of all day traders is to make a living from trading commodities, stocks and even currencies by having small profits on a large number of stock and capping losses on the trades that are unprofitable. This form of trade mostly attracts the young more than the old people. Day traders do not have any positions or any securities overnight. There are several day trading strategies in day trading which include scalping, fading, daily pivots and momentum although sometimes it might be risky but with these strategies it is with a high probability that you will be successful. There are very many tools to look at for you to be successful in day trading and they include;
Active day traders need to have computers, routers, monitors, modems a good software so as to be on the update of the market every time of the day. As a day trader you also need to have access to a level II trading service which will help you get the real time quotations of any individual market maker. The level II is the highest level information provider to people who are not members of NASDAQ firm or a registered maker of the market. They also need to have an electronic communication network so that they can prevent themselves from paying commission to brokers for any trade made.
It is good to have the experience in day trading terms before starting it even if it means taking a degree course. Because of the risks involved in day trading, it is good to start by paper trading which is making imaginary buys and sells using the real market data so as to know the potential you have in making profits before you start using real money.
It is necessary to be very disciplined in day trading if you want to be a successful day trader. Most people get addicted to trading and do not care how many times they lose as long as they win once and this is more of gambling than trading and it is not healthy. You need to have discipline so that you can make a right decision to take a profit or loss depending on the market conditions. Being disciplined enables a day trader to have a plan and stick by it so as to be profitable. For more information about day trading, click on this link: https://kids.britannica.com/students/article/stock-market/277903.