What are the prerequisites to day trading?

It is worth to note that sufficient knowledge of the market is among essential prerequisites to day trading, because the lack of understanding of market fundamentals can lead to failure. Another important thing to mention is having an effective day trading strategy to generate consistent gains and limit loses. Actually, day traders employ different strategies, like swing trading or arbitrage trading. Finally, we have come to discipline, which serves as a key to successful trading. As a matter of fact, the absence of discipline can make any effective strategy useless and for this reason a considerable number of day traders end up losing large amounts of capital.

What are the styles of day trading?

Day traders usually utilize trend trades, range-bound trades as well as countertrend trades to conduct trading. In general, most of traders choose the option of using a concrete style of trading and follow it in a consistent manner. Trend traders follow a trend, that’s to say, they buy an asset, which is on an upward price movement. On the contrary, counter-trend traders buy an asset, which is on a downward price movement. Finally, range-bound traders trade on assets that are fluctuating in a channel in a reliable manner. Range-bound trading is mostly typical in a sideways-moving market.