It is always time to make money! And today we will show you how you can make money with day trading. First, you must understand what day trading is. It is being able to determine when the price of an asset or a cryptocurrency is going to change its price. For example, let’s say that right now Facebook stock is worth $200 per share, then day trading will be able to determine if the price of the Facebook stock is going to be 250,225,210 or 150 any of those prices during the day, that is what we call day trading.
What is the price of a certain asset or share? The price will be determined during the day. What do you do when day trading? It is actually borrowing certain leverage from the broker and buying a certain asset for a certain period and then selling it at a higher price.
For example, the same thing happens with the euro against the dollar, let’s say the euro against the dollar is worth 1.18 and you buy 10 thousand euros, basically you are going to make 10,180 dollars, so what happens if the euro goes up in price? That is where the profits that you are going to have when investing in dollars are. So, you must understand when an asset is going to change in value and bet, there are many ways to day trade like forex stock trading, binary options, etc.
How do profits work when it comes to day trading?
The profits of this type of trading are truly virtual until you withdraw your money. And that is what a lot of people don’t understand, they want to double their bills in a single day when it has to be measured weekly, bi-weekly or monthly. This is about one day at a time, it’s not about everything in one day!
We started an operation with $100k and now we have a little over $35k in profit, keep your profit in mind when it comes to day trading. Make sure you have a good plan, you will have to know when you are going to withdraw your money and more importantly how much money you are going to withdraw!
How to manage the risk?
Now we will talk about when to manage the risk, and this varies according to the type of daily trade that you are going to do, one of the biggest recommendations is to never go over 2% of your balance in each trade that you are going to invest in.
For example, when it comes to Forex you will be able to use something called risk-reward ratio, so every time you win a position you can win 10 times more than what you were losing!
Make high or low investments?
Many people ask us if it is better to invest low or high, and the answer is quite simple, you must invest only what you can afford to lose. The main mistake of many people is that they try to invest more to earn more and that is not the point, the point is that you can trade well, it does not matter if you have 1 million dollars or 100 dollars, if you do not have the experience of trading you will lose even everything.
So get education, as much as you can so you can be profitable, it does not matter if it is only 50 dollars or 100.
What can we conclude?
It does not matter which option you choose, you have to educate yourself. If you are going to choose Forex you have to become a Forex expert and you are ready to go, the same with Binary Options or with other type of cryptocurrency. We hope that the information in this article can be of great help and importance to you. Stay tuned to our articles and videos to be more informed!