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Easiest Type Of Trading

Day trading can be a profitable and constructive way to use your time provided you’re able to manage it well. Before we jump into exploring the easiest type of foreign exchange trading, we should first ensure that we fully comprehend what day trading entails. We’ll also learn about how you can manage risks better and improve your chances of getting more returns.

What is day trading?

The purchase and sale of securities or financial assets within 24 hours is known as day trading. To make profits as a day trader, you should be able to close all your open positions within a day. Even though this is a time-bound strategy, beginners with no well-defined strategy can find it to be risky.

What happens in a day trade?

Day traders eye on making big profits by accumulating several small trades. Typically, they invest in currencies or stocks that offer greater liquidity as they want to cash in on the price movements. Here are top day trading strategies that you would want to consider:

  1. Forex

The largest financial market in the world that offers a lot of liquidity, the forex market is a great option for those who are looking for short-term opportunities. You would come across trades that move fast and thus need to be opened and closed frequently. It helps to have good analytical skills to do well in this market.

  1. Cryptocurrency

The cryptocurrency market is presently led by Bitcoin with Ethereum being a close second. In the last few years, cryptocurrencies’ popularity has been on the rise. With a steady influx of new traders every day, the market offers incredible liquidity. The journey of making cryptocurrency more accessible is soon going to be easier as brokers are working constantly to remove roadblocks.

  1. Stocks

Physical shares in a company, options, regular and leveraged Exchange Traded Funds (ETF), and futures are known as stocks. It would be interesting to note that options are not actually stocks. They’re in fact a cost-effective alternative to entering the stock market by simply speculating on share prices instead of going ahead and buying them. ETFs are on the other end of this spectrum that groups multiple stocks as one.

Holding on to stocks for the long-term may be a safe bet but you can also earn profit in the short-term through various methods, one of them being speculation. It requires you to predict and bet on the price movements. By utilising margin or leverage, you can buy more by investing much less.

  1. Binary option

Binary options can be safely labeled as rather simple and the most predictable types of trading tools. You can make the most of it if you’re new to online trading since your ability to predict against timings and ROIs would be very strong. Usually, reputable and renowned firms would have binary options. Assess the brand before deciding whether the value of its assets will increase or decrease. It would be a good addition to your portfolio, one that would not need you to be a technical expert.

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