Day trading could even happen in any marketplace but is most commonly seen in financial markets and Forex markets.
Traders and Trading Styles
Discretionary traders are decision-based traders who scan the markets and place manual orders in response to information that was then available.
On the other hand, machine traders employ a form of technology to apply an arbitrary set of rules. It requires both a computer to search for trading openings and to manage all order entry activities.
The futures markets, as well as the broad market indexes, are noted as traders form opinions on the direction they expect to trend in the market. Traders will also monitor economic calendars to figure out which market-moving financial updates which potentially work on that day. For instance, the weekly petroleum status update.
You should note that many traders engage in round-the-clock markets, such as futures and Forex. And then, these traders should expect to see elevated turnover until the majority of the markets open at 9:30 am.
Usually, day traders finish their trades during the day and stop keeping positions overnight, save for the Forex market.
The trader uses an interface to submit orders to the market by order entry. Many traders will also place simultaneous orders for profit targets and stop losses in order to protect themselves against adverse price movements.
Some dealers are still searching for openings for late-morning reversals. As the volume and volatility of trading decreases as midday approaches, most traders will hope that any positions will reach their profit targets before lunchtime.
Traders are still monitoring their open positions and looking for further opportunities. Since day traders do not hold their positions overnight, many set a deadline past which they will not open any additional positions. For instance, at 3.30pm. It will ensure they have ample time to make a return before the doors close.
It’s what matters to traders over time-in terms of months and years.
If organized and consistently used, a trading journal can provide a trader with vital information that aims to improve their plan and performance. Many traders will go back to a network of financial news to get a recap of the day. And then, start making plans for the next trading session.