Day trading is the trading system where you trade several financial apparatus such as currencies, stocks etc. The aim of day trading is to gain profit from the price difference between buying and selling of a commodity. Other different styles of trading also exist but day trading system is a little bit different from those styles because it is not held overnight and it is not traded when the market is closed. Financial companies like banks make available day trading system because they have connectivity of market data and exchanges. But now-a-days, with the growing use of internet, an individual trader can make direct access to exchanges and market data.
Depending upon how the trade is going on, whether it is in profit or loss, the length of day trading can be from few minutes to few hours. Day trading provides you quiet a lot of flexibility. Many day traders select multiple styles to trade while some select single style in day trading. Day trading also can be done in different styles like counter-trend trades, trend trades and ranging trades.
Trend trades and counter-trend trades are opposite to each other in terms of buying and selling. When the price is on upper band of channel then buying is done i.e. trend trades move in the direction of current price while in counter-trend trading, selling is done in case of higher prices i.e. it is in the direction opposite to the current price. Ranger trade move forward and backward in between two prices and are generally done when the market is in one side. Depending upon the current situation of the market most of the day traders choose multiple styles of day trading while some stick to single style.
In addition to style and type of day trading there are some other inconsistencies in between the day traders. There are many traders who make various trades in the same day while there are some other day traders who make single trade in a day by considering the current situation of market. However the process and the aim of day trading system are same no matter how many trades are made in a day.
There are four different types of day trading i.e. futures, stocks, currencies and options. Inside of these types of day trading system there are markets which depend upon the stock exchange, currency exchange rates like Yen to US dollar exchange rate and commodities such as natural gas, oil etc. Through direct broker, day traders have accessibility to many exchanges and market data and also get faster execution of trading at low cost.
