Trade12 - Short Selling Against the Market

Trade12 Review Blog – Short Selling Against the Market

The ultimate goal in the buying and selling of stocks is to make money from them when the trend rises. But what would happen if the trend reverses to a decline? How could investors make money from this phenomenon? In this article, we would talk about short selling and how it works.

Trade12 - What is Short Selling

What is short selling?

Short selling is a trading strategy wherein traders seek to make money from the belief that a stock will decline. It is the sale of a security that is not currently owned by the seller, or more simply put, borrowed from a broker. It aims to immediately sell the stocks at their current price, then bought back or covered at a lower price to make profit.

Short selling is led either by the speculation that the market will decline or by the desire to hedge the downside risk of a long position. There is a misconception that short selling is done with the intention to put companies into bankruptcy. The truth, however, is the other way around. Short selling actually facilitates smooth functioning of the markets by providing liquidity, it also acts as a restraining influence to avoid overvalued stocks and assist in stock value correction.

Trade12 - How Do You Short Sell

How do you short sell?

Long term investments usually follow the conventional principle of buying low and selling high. It is also the same as with short selling, with just a minor difference. It initializes selling high first, and then waits to buy at a lower price. The short seller then generates profit from the difference on the price when the stocks are sold and when they are bought back.

Let us consider the following example:

A trader speculates that stock ABC would decline in value. It is currently priced at $20. The trader decides to borrow 1000 stocks from his broker, who in turn looks for stock sources – either from his own inventory, a client’s portfolio, or from other brokers. The stocks he borrowed are then immediately sold at their current price and the proceeds will be transferred to the trader’s account amounting to $20,000.

After a week, stock ABC falls to $15. The trader decides to close the short position and buys 1,000 shares of ABC at $15 each on the open market in order to replace the stocks he had borrowed. To sum it up, the trader has made a profit of $5,000 from that transaction, excluding the commissions and interest that he owes the broker.

Now, what if the trader’s speculation did not happen and the stock price increased instead? Let’s take for example that after a week, stock ABC shot up to $30 each. It so happens that the original owner of the stocks has demanded his shares back. The broker has no choice but to close the position of the trader. The trader’s loss has now amounted to $10,000 (($30*1000) -$20,000), excluding the commissions and interest that he still owes the broker.

Trade12 - Risks of Short Selling

Risks of short selling

Taking from the example above, we may understand the huge risks of short selling. In a normal investment, the biggest loss that an investor can have is only equivalent to the amount he used to buy his stocks while his biggest gains are theoretically infinite since nobody can tell up to what value the market can rise up to. It is the opposite in short selling, because the biggest gains of a short seller can only be equal to the amount of the stock when sold, while his biggest loss is theoretically infinite – the short seller’s loss is parallel to the market value of the stock as it increases.

Conclusion

Short selling is considered as a very dangerous strategy because of the market’s volatility. No one can really speculate if the trend is going up or down. However, skilled traders and investors find this strategy profitable and practical when done right. Always remember that the best way to beat the market is by establishing enough knowledge and learning the fundamentals so as to avoid being run over by the market’s unpredictable trend.

Stay updated on market news, trends, and tips by regularly visiting Trade12. It is a reputable online trading broker with years of experience in the field. Register an account now and enjoy a wonderful trading experience!

Trade12 - Beginner's Guide to Making Money through Online Stock Trading

Trade12 Review Blog – Beginner’s Guide to Making Money through Online Stock Trading

The idea of making money online, inside the comforts of your home, and not needing to put a lot of physical effort is very tempting to do. Many people have the misconception that online stock trading is simply generating passive income, but it is far more from that. Investing in stock trading is very profitable, that is, if you understand how the market behaves and knows how to play along with it. In that case, it can be a great way to ensure you make money from what you currently have, instead of simply putting it in the bank where there is no significant returns. Here are the basic steps to make money through online stock trading:

Trade12 - Make money through stock trading

Choose your broker

Find a reputable trading broker site. In this step, research is the key. Look for online trading reviews about the brokerage site you would like. Read client feedback and make sure you only invest in a trustworthy broker.

Add funds to your investment account

After you have chosen your broker, you then proceed to register an investment account. Most brokerage sites offer different account types based on the amount of initial capital you would like to deposit. To play it safe, you can deposit the minimum amount just so you could try the reliability of your broker and the efficiency of your trading strategy. However, if you already have a solid choice of stocks, you can deposit enough capital to buy the required lot size of the stocks you want to invest in.

Choose and buy your first stocks

The market is very broad, so choosing stocks can be a difficult decision to make. Just a tip: choose stocks from a dominant and known company. Check on the company’s financial history to ensure that their stocks would be profitable. Make sure that the stocks you choose would be for a product that you know many people would consistently buy. For starters, buy only a small number of reliable stocks, but of course it depends upon your capital.

Monitor the market

Stock trading doesn’t stop after you buy your own stocks, you should keep on monitoring the market to make sure they are always in a profitable favor. Do not forget to set a stop loss to make sure you have full control of your assets. This is important so that you won’t lose more than what you can afford to. Keep your head up in the game. If you want to make consistent profits, do not just stay in a stock or two. Continue looking for profitable stocks to expand your assets.

Choose between cashing out and reinvesting your profits

You can always cash out your profits, but also consider the possibility of reinvesting them. That is the key to making consistent money in stock trading, especially if you are interested in making it a career or your main source of living. Just make sure that you can monitor each asset even if you invest in a lot of stocks.

Trade12 - Monitor the stock market

Need help in choosing a broker? Read more about How to Choose an Online Broker.

Bottom line

Stock trading is a cycle. Continuous research is the key to get the upper hand. As profitable as it may seem, however, it also poses a great risk. You can easily lose money if you don’t educate yourself, especially with all the financial trading experts out there. If you are one of the persistent and hardworking people who can dominate the market, then this career can be very rewarding for you.

Looking for a reliable online trading broker? Look no further than Trade12! With their tight spreads, flexible margins and high leverage, you are sure to get the satisfaction you are looking for. Register an account now and start trading with Trade12!

Trade12 - Importance of Following a Trading Plan

Trade12 Review Blog – Importance of Following a Trading Plan

There is a golden rule in trading which goes “Plan your trade, and then trade your plan”. A house won’t be built without an initial floor plan. It would be like buying random building materials without knowing where you would actually use them. It’s also the same with trading. You don’t simply enter and exit a trade whenever you want to. You should have guidelines that would indicate the right timing to make a certain action. This is what you call a trading plan.

Trade12 - Road Map

What is a trading plan?

A trading plan doesn’t really differ a lot from other plans you can imagine. It is more like an outline of your activities, something like a to-do-list in trading. By definition, trading plan pertains to a set of guidelines to define your trading activity. You think of it as a road map. It shows a route which you need to take from where you are and to where it leads. Metaphorically speaking, it gives a clear picture of your journey. It does not need to be a complex system. It would only provide you the basic guidelines of what you need to do.

What do you need to put on your trading plan?

There is no exact standard of what you need to put on your trading plan. However, a typical trading plan contains certain important elements. These include your profitability goals, position sizes, how to manage these positions once you’ve taken them, and a criteria of when you will enter and exit a trade. These elements are not constant. They should be adjusted in each of your trades in order to meet their varying market conditions.

Why do you need a trading plan?

Overall, a good trading plan will help you identify your goals, manage your emotions and trading risk, and help you decide when to take action. The most common mistake of traders is following their emotions. These emotions, when challenged, tend to betray a trader. Having a standard to follow helps in controlling the decisions made from emotions by sticking to the initial plan. It helps to keep the trader in the right direction when they begin to waver from their original path.

Read more about the 5 emotions that go against trading.

Trade12 - Trading Plan

What happens if you don’t follow your trading plan?

There is a saying that “If you fail to plan, you’ve already planned to fail”. Not following a trading plan transforms your trades into gambling where you simply use your intuition and luck in order to win. In other words, you can’t ensure your success. This doesn’t mean that you are guaranteed success if you have a trading plan. It simply increases your chances of winning through a systematized plan.

Conclusion

There may be times that it could have resulted better if you listened to your intuition and not have followed your plan. Yes, you might have earned a few more profits, but following your initial plan saves you for a longer term. With your decision to follow it, you’ve made a step towards building the most essential value in trading, discipline. In the long run, only the disciplined traders will become consistently profitable. Make sure to trade with your plan and secure yourself a better future in trading.

Stay updated on market news, trends, and tips by regularly visiting Trade12. It is a reputable online trading broker with years of experience in the field. Register an account now and enjoy a wonderful trading experience!

Trade12- Introduction to Portfolio Diversification

Trade12 Review Blog – Introduction to Portfolio Diversification

No matter which stocks you choose to invest upon, huge risk is always present. There is no way you can eliminate this risk. However, you can reduce your overall investment risk and lower the possibility of damaging your portfolio’s performance through an investment technique called portfolio diversification.

Trade12- Portfolio Diversification

What is portfolio diversification?

Basically, portfolio diversification is a risk management technique that is done by investing your money on multiple types of securities or financial assets. Its main objective is to soften the risks of blowing up your account from bad investments and ensure your money is invested in different areas of the market that have a chance to outperform. In diversification, it is important to venture on other asset classes like stocks, bonds, and mutual funds. It is more effective if the investments are spread to different industries, and if possible, different countries.

Importance of diversification

Consider a scenario wherein one company has filed bankruptcy. If all of the stocks you own are from that company, you could probably guess how huge its impact would be in your portfolio. However, if you have another company you’ve invested upon, which makes positive returns, then your portfolio is neutrally safe from crashing alongside the other half of your stocks. Now what if you have invested in 2 other companies which are all doing great in the market? You can confidently say that your winning trades will overshadow your losses since ¾ of your investments make positive returns.

It’s also the same if there is a huge economic decline to a whole industry, or in worst cases, to a whole country. If your stocks are diversified to other industries or countries, you’re other stocks are safe from the negative impacts of those losing in the market.

Trade12- How Many Stocks Should You Own

How many stocks should you own?

There is an argue on how many stocks you should own for optimal portfolio diversification. The most acceptable number of stocks is between 15 to 30 that are all spread to other industries, classes, and countries. However, diversification does not prevent losses from your investments. There is still a possibility that the majority of your assets result to a loss, so smart choosing of profitable stocks is still the best way to lessen this risk.

Conclusion

Despite doing all these precautionary measures, they don’t guarantee you a good portfolio. No matter how diversified your portfolio is, the risk can never be completely eliminated. It can simply reduce the impact of losses from your investments.

In order to diversify, make sure that your broker has everything you would need. Trade12 is a leading international online trading brokerage firm that offers investment services on almost all countries. They also offer investments on stocks, foreign currencies, commodities, and other financial securities you could choose to diversify your portfolio. Register an account now with Trade12 and start diversifying!

Trade12- 5 Emotions that Go Against Trading

Trade12 Review Blog- 5 Emotions that Go Against Trading

Committing physical and mechanical errors in trading are easy to identify and fix. What makes it hard, especially for beginners in trading, are the psychological emotions that we cannot physically perceive. There are no outside factors that can fix these. Only the trader himself will be able to relieve him of these. These human emotions usually happen within us, without us knowing that they are actually affecting us especially our decisions. Here are 5 emotions that go against trading which we have to conquer in order to perform better.

Trade12- Emotional Dangers of Trading

Hope

By definition, hope means to want something to happen or become true. It doesn’t seem harmful when we look it that way, but in trading, it plays a big role. Reading this, you probably know the importance of trading plans, setting a stop loss, and the discipline to follow these. That is where hope enters. When a stock is going up or down, it is hope to recoup losses that make the trader ignore the initial stop loss he set. The problem is the market doesn’t care about how we feel, and because of its unpredictable trend, this way of trading usually results to losing more.

Fear

Fear is defined as the anticipation of the possibility that something unpleasant will occur. Studies say that most traders suffer from fear the most. It is the main reason that stops a trader from trying again after experiencing a few losses. There are a lot of instances wherein a trader does not enter a quality investment due to fear of losing more. I am not saying that a trader should not listen to his fear as sometimes it can also save him from more loss. However, a good trader should not let his fear stop him from thinking rationally and be able to recognize profitable investments.

Greed

Greed is commonly defined as an excessive or rapacious desire, especially for wealth or possessions. Trading with greed tends to result to wanting more and more. However, it is a wrong practice to anticipate your profits in trading while the position is still open. A trader should focus more on the process and how to improve it instead of looking forward to profits which are often unrealistic. There are also times wherein a win turns into losses when traders let greed work its way in the trade. To play it safe, stick with the initial plan and put effort into developing your strategy more. That way, profits will come your way naturally without you even noticing it.

Anger

Anger is defined as loss of self-control from a feeling of displeasure. After a series of losing trades, there is this feeling of anger that wants to drive us into adding to lost trades in order to regain our losses. This is called revenge trading. However, the market usually works the other way around. Just when you thought it was going to snap back again, the trend continues to decline, thus resulting to more losses. The safest way is to follow your stop loss plan to minimize the amount of losses.

Regret

The feeling of regret means to be unhappy or disappointed about something that has happened or been done, especially a loss or missed opportunity. It is only natural to feel regret about the bad decisions we make, especially in trading. But it is also not good to focus on lost trades and missed opportunities. A better way is to assess and evaluate what was done wrong, look forward to new profitable opportunities, and apply what you have learned.

Trade12- Emotions Traders Should Avoid

Conclusion

It is perfectly normal, as human beings, to feel these kinds of emotions especially in a field as risky as trading. What makes it bad is when we let these emotions overwhelm us to the point that it controls most of our decisions. The best way to avoid this is to recognize these feelings and know when to set them aside. Putting our trading plans and strategies first and having the discipline to follow them without wavering because of these emotions will help us improve our trading performance.

If you are really serious in trading, read about the 10 good online trading habits of a successful trader.

Stay updated on market news, trends, and tips by regularly visiting Trade12. Trade12 is a reputable online trading broker with years of experience in the field. Register an account now and enjoy a wonderful trading experience!

Trade12- An in Depth Guide on How the Stock Market Operates

Trade12 Review Blog – An in Depth Guide on How the Stock Market Operates

What is a stock?

A stock (also called a share) is basically a type of security that represents a piece of ownership in a company. When you buy a stock, you are entitled to a small fraction of the assets and earnings of that company.

There are 2 types of stocks based on ownership rights. The first one is the common stock which entitles the owner voting rights equal to the shares owned. It gives the owner a chance to partake in the major decision making of the company. The other type of stock is called preferred stock. It is a type of ownership with a higher claim on the company’s assets and earnings than a common stock. Although it usually does not carry the same voting rights, owners of preferred stocks are usually guaranteed with a fixed dividend, which must be paid out before distributing it to the common stockholders.

To determine the price of a stock, the company first initializes an IPO or an Initial Public Offering which sets the price of the stocks based on the estimated worth of the company and how many shares it wants to issue. The company does this in order to raise money, which the owners use to pay off the loan used to build it.

The stock market

Trade12- The Stock Market

Investors continue to buy and sell stocks through an exchange called the “stock market”, although the company itself no longer receives money from this. The only time the company receives money through its stocks is from the IPO. The traders continue this kind of transaction because the perceived value of the company changes over time. Investors determine this value depending on the current trend of the market or how well the company does.

The price of a stock in the stock market can be determined in many ways. One of the most common ways is through an auction process where buyers and sellers place bids and offers for a stock. The bid is the price at which somebody is willing to buy a stock while the offer (also called ask) is the price at which somebody is willing to sell a stock. When both parties come to an agreement, a trade is made.

Understanding the market trend

Trade12- Understanding the Market Trend

The market trend tends to have fluctuations, occasionally rising or dropping for a long time, thus giving birth to bull and bear markets. Whatever is the status of the trend results to gains or losses of profits to investors. The problem is the market trend is hard to predict due to the numerous factors that affect it. The challenge is how the investors would take advantage of this trend to put it in their favor. The main goal of buying stocks is to make money on companies that are expected to do well.

Earning profits through the stock market

There are many ways to earn profit through the stock market. One is through dividends. A dividend is a cut of the company’s profit that is shared to its stockholders in order to give them a return of investment. Only a few companies do this as most of them opt to issue growth stocks. These stocks are where the company’s profits are reinvested to equipment, renovations, and expansions which could make the company’s value grow.

Trade12- Earning Profits Through the Stock Market

If not through dividends, the idea of the stock market is to “buy low and sell high”. Investors usually enter the market when stocks have low prices or in a downward trend, in hopes for it to make a snap back. When the stock value rises, most traders sell their owned stocks when they reach a speculated peak to earn profit from the difference of the stock value when bought and when it is sold.

Interested to try stocks trading? Read here about the steps to making money through online trading.

Bottom line

As an investor, you have the choice on how you would manipulate the stocks for your benefit. Whichever way you prefer, the main goal here is to gain profit. There are dozens of companies that are authorized to trade with major stock exchanges. Even if you are far away from these companies, you can always use the power of the internet. Nowadays, it has revolutionized stock trading, giving anyone with an online trading account a power to join in stock exchanges.

If you are interested to join the stock market, you have to participate through a stockbroker. Trade12 is an international brokerage firm that specializes in almost all kinds of trading options like stocks trading. With their ECN brokers, you’ll be able to join the stock exchange the easiest way possible with reliable guidance. Register an account now and enjoy an exceptional stock trading experience only Trade12 can give you!

Trade12- Understanding the Concept of Bear and Bull Markets

Trade12 Review Blog- Understanding the Concept of Bear and Bull Markets

The stock market trend is very unpredictable. It usually swings back and forth, thus resulting in gains and losses. It is up to the investor on how he would take advantage of the trend. A good investor knows how to play and ride with the market trend, putting it to his advantage. There are 2 major types of market trends, namely bear market and bull market, each of which play an important role as they have a huge impact on all aspects of trading.

Read more on an in depth guide on how the stock market operates.

Trade12- Bear Market

Bear market

A bear market often signifies a weak economy with its transition from optimism to pessimism. It is characterized by the price of securities continuously dropping or believed to continue in a downward trend. The term “bear market” is taken from the way a bear swipes its paws downward when attacking his opponent. The market is often recognized to enter a bear market when there is a downturn of 20% or more and more than 2 months of downward trend. In the long run, it results in a slowdown of the economy and eventually rises in unemployment as companies start to lay off their losses.

Making profits in a bear market

In a bear market, supply is high but the demand is low, thus resulting in lower stock prices. There is a high chance of losses because stocks continuously lose value while the end of the trend is unsure. There are two ways investors take advantage of a bear market. One is to make gains by short selling. It is the selling of borrowed shares and buying them back at lower prices. The difference between the price of the stock when it is sold and bought back is called “covered”. Another way to make money out of a bear market is by making safe investments or investing in fixed income securities.

Trade12- Bull Market

Bull market

A bull market is the opposite of a bear market. It signifies a strong economy with the market’s transition from pessimism to optimism. It is characterized by an increase in the market price or the belief that it will continue an uptrend for a long time. The term “bull market” is a metaphor for the movement of the market trend as compared to the way a bull thrusts his horns upwards to attack his opponent. The market is believed to enter a bullish trend when there is a rise in the value of at least 20% or more. In this type of market trend, the economy is strong and the employment level is high.

Making profits in a bull market

To make money in a bull market is fairly easier than in a bear market. Here, the demand is high while the supply of securities is low since most investors do not want to sell their stocks. It is highly suggested to hold on to stocks as their interest and profit returns are high. Another way is to buy early in the trend, then sell the stocks at the peak of the trend. Compared to a bear market, there is a higher probability of return in a bull market. Any loss can be minor and temporary as the values of securities continue to rise.

Conclusion

As an investor, the ability to recognize the different types of markets can help you make money in stock trading. The idea is to buy low and sell high. Thus, buy stocks in a bear market when stock prices are low and sell stocks in a bull market when stock prices are high. However, knowing the best time to do this is not simple since there is no way to predict the market trend, especially when it will reach its peak. The best thing to do is to invest money on quality investments.

A good investor knows how to understand and predict the behavior of the market. Stay updated with the latest news and updates by reading market reports brought to you by Trade12. Regularly visit Trade12 for more updates about the stock market and everything about trading. Do not forget to leave your reviews and comments about Trade12’s reliable services.

Trade12-Here's the Best Databank You can Find

Trade12 Review Blog- Here’s The Best Trading Databank You Can Find!

Are you looking for a place to get information for you next trade? You should be! Trading after all is a game highly focused on gathering information.

By information here, we mean raw data that can help you out with analysis. If you’re here to get an uncertain tip about an issue that’s about to go up, then we can’t help you with that.

What we can provide you though is a source of objective information. It is the lifeblood of any seasoned trader. You want objective unbiased information that can feed your metrics the information you need for proper decision-making.

This is something you’ll get with Trade12.

Trade12: The Most Comprehensive Trading Platform You’ll Find Online.
Most trading platforms prefer to allure traders with discounts on fees and commissions, in addition to tight security. While Trade12 provides those, they extend beyond into the realm of information collection.

You see, not only does Trade12 give you brokerage services and a platform to trade, but it also provides you market news for decision-making. Market news is for a variety of markets, where regularly highlights are provided for important issues and markets that might be interesting to any trader.

The market information provided covers the different types of markets that Trade12 allows you to trade. Through Trade12, you can trade metals, futures, and forex.

Thus, you’ll get market information related to changes in currencies, with a little political analysis related to forex. You’ll also get information about stocks that affect index prices for futures. You’ll also receive information on metals markets if you don’t like currencies of futures.

Information Also Includes Stocks.

Yes, Trade12 does provide information to the trader on annual reports for many stocks in major world countries. You can get annual reports and the dates of release for American, European, and Australian stocks. Regardless of where you live in the world and which 1st world market you trade, you have a database for your fundamental analysis.

The previous information saves you a lot of time wasted in searching. It is not uncommon for many traders to waste a lot of time simply to find a reliable website to get their information.

Many traders may struggle to get the annual reports they need, or even relevant market information related to what they’re trading.

Trade12 cuts the path short for you. Now you can relax and spend more time analyzing what you will be trading, instead of wasting time skipping through multiple websites to get information.

The Information Isn’t Just Analytic Though…

There’s educational information too. Trade12 actually provides education to starting traders through a series of e-books to help them better understand terminologies and the market structure.

It’s an initiative that saves time for the new trader, and lets them get through the learning stage much quicker. In essence, Trade12 could be considered as a starting platform to help guide the education of a new trader.

There’s nothing more to wait for! We recommend you start out right away!

Trade12- Beginner's Guide to Day Trading

Trade12 Review Blog- Beginner’s Guide to Day Trading

Day trading is defined as the buying and selling of a financial security within a single trading day in attempts to extract profit from the market. Most experienced day traders only spend one to three hours for trading each day, while the rest of the day is spent mostly for practice. Day traders usually take advantage of small price movements that occur in a short period of time by leveraging large amounts of capital. As easy as this may sound since it only involves a short time frame, successful day traders need huge amounts of preparation and education before they make consistent profits. It is a common misconception that day trading is a get-rich-quick way of making money as it poses a higher risk of losing money than a chance of making profits.

Trade12- Day Trading

Essential characteristics of a day trader

  • Knowledge about the market
    Just like with any kind if trading, knowledge is very important in order to become successful. A day trader can only be successful if he knows the usual behavior of the market, the factors that can affect it, and the time when the market is more profitable. Any person who engages in a trade without knowing the basics usually ends up losing money.
  • Trading experience
    Knowledge alone would not suffice. Even if a beginner does not have experience in real trading, lots of practice with a demo account can make a huge difference. This experience is not accumulated in a single day of practice. Some even spend as long as 6 months just to prepare for day trading.
  • High capital
    Day trading can only be profitable if a trader leverages high capital. If a day trader only has a small capital, even winning in a trade which involves a small price increase can be insignificant. Access to large amounts of money or high leverage ratio is the only way to secure bigger profits in day trading. However, day traders can only risk the capital that they can afford to lose because they can never have an assurance that they’ll get into a winning position.
  • Effective strategy
    A day trader should not enter a trade unprepared. Before the market even opens, they usually have strategies on hand. These vary from swing trading, arbitrage, trading news, and others. These strategies are further developed until they produce consistent profits and effectively limit losses.
  • Access to resources
    A day trader must make sure that he has an edge over the other traders. As there is a lot of risk in day trading, having access to helpful resources is of big help. These resources may include dealing desks, brokerage firms, market news, analytical software, and many more.
  • Discipline
    “Plan the trade and trade the plan”. Having a trading strategy and access to analytical software is useless if the day trader himself does not have the discipline to consistently follow his plans and do his job in analyzing before making decisions.

Trade12- Day Trader

There are 2 types of day traders

  • Dependent day trader
    This kind of trader usually handles another person’s money or trades only his own. Only a few of them have an access to a dealing desk, which is a downside. However, most of them have strong ties to brokerage companies because of the high amount of capital they use. They usually use technical analysis and swing trades to help generate profits. Despite all this, it is still not enough compared to the resources of day traders for large institutions, thus putting them at a greater risk.
  • Day trader for large institutions
    These traders have a direct line to dealing desks, access to large amounts of capital and leverage, and expensive analytical software that are usually paid for by the institution. Their resources lessen their risk so they often make easy profits with day trading.

Read more about the different kinds of traders you commonly see.

Day traders should learn how to be flexible in developing their strategies because there are no two trading days that are alike. They should always be ready for any changes that might affect the market. Like other types of trading, a day trader needs hard work and effort in order to become successful. There is no such thing as an easy way to make money. Fast, maybe, but with equivalent higher risk. Commonly quoted statistic says that only 5% of day traders are profitable. Hard work and practice increase the chance to be a part of this 5%.

Trade12 Website

It also helps to be partnered with the best. Trade12 is a reputable online trading broker that offers leverage as high as 1:400, making it the best for day trading. Offering MetaTrader4, a day trader can have access to several features that can help him secure profits like interactive charts, high speed execution of orders, and live streaming of market prices. Trade12 also offers the service of ECN brokers who are always available to guide their clients. With the numerous online trading reviews available, anyone can be assured that Trade12 is really trustworthy. Register an account now and become a successful day trader!