Characteristics of a day trader
Day traders can speculate on a variety of markets, including stocks, forex, commodities and futures. The rise of trading technology and increased prominence of margin trading, which amplifies both profits and losses, has made day trading more popular in recent years.
Day trading requires time, focus and dedication as it involves making fast decisions and executing a large number of trades. Day traders don’t necessarily need to trade all day, but do need to stay vigilant and stay ahead of the markets.
Day traders have to think differently from investors, as buying low and selling high might not always be in their best interests. CFDs and spread bets are both useful products in that respect – as financial derivatives, they can be used to take both long and short positions on various markets.