Trading used to be an activity that was exclusively available to stockbrokers on Wall Street but nowadays it's available from the comfort of your own home. It’s a phenomenon that’s spread over the world and that’s usually referred to as day trading. The idea of day trading is that you conduct several shorter investments during one day instead of placing longer investments.
But what is day trading and how do you do it? Well, these are the most common assets:
Day trading is something we've been doing for a long time and that we’ve come to love. In our opinion, there is no better way to trade than day trading. It’s a lucrative way of benefiting from the market and an even better way of making money. Although, it does involve some risk if you’re not careful. Therefore, our goal with BullMarketz is to provide the BEST day trading guide on the Internet. We want to educate by example, keep our readers up to date with the latest news, but more importantly have fun while doing so.
- Create a free demo account
- Find a broker
In fact, having fun is the most important part because you can’t expect to succeed in these highly competitive markets unless you enjoy doing it. Day trading isn’t a regular job where you go to an office every day and have tasks that need to be completed. No, day trading needs to be a passion of yours, and it requires your full commitment. How else would you be able to sit down every day and remain focused for hours? You wouldn't be able to if you weren't passionate about day trading.
For most, passion is something that develops over time. Usually, when people start trading they’re driven by the excitement of investing every day and the possibility of making money. Eventually, that excitement will cool down and that is when your passion and appreciation for trading needs to kick in. You can't expect to make real progress and become successful before that happens.
The idea behind BullMarketz is to give you support from your very first day on the financial markets until trading becomes a routine for you. We can offer you all the basic information that you might need as a beginner. And because of our experience trading with different types of instruments, we can also offer the tools needed for you to survive in the global markets. It doesn't matter what your level of experience is, we are here to help you.
But let’s jump into the important stuff. Below you’ll find detailed information about the different sections and topics that we cover on the website, as well as an explanation of what we can offer you as a trader.
Day Trading With Currencies and Currency Pairs On the Forex Market
One of our favorite types of investments is called currency trading. Recently this has also become one of the most popular forms of day trading. The foreign currency market, also called the forex market, is a decentralized market and the single most lucrative market in the world. Every day, currencies worth several billion dollars are sold globally. And if you’re dedicated enough to learn about the market you will have opportunities to make money from both longer investments as well as shorter trades. In other words, the forex market offers possibilities to trade on long-term price developments and short-term price changes. Your investments can stretch for a few minutes to several years, and everything in between.
Our best recommendation for forex trading is to only focus on a few currencies and not the whole market. As a day trader, you need to find a couple of currencies that you understand and then focus all your attention on them. For example, if you're from the US your main focus could be the USD and CAD, but if you live in England, GBP and EUR might be a better choice. We also recommend that you find a few smaller currencies to combine the major ones with such as SEK, TRY and THB.
After you’ve decided what currencies to trade with you need to analyze them until you have a better understanding of how they act together. Then you need to start looking for events that will affect the markets and create investment opportunities to benefit from.
Everything You Need to Know About Stock Trading
Stocks are what most people associate with trading because in many ways stock trading is the traditional way of day trading.
Stock traders invest their money by buying shares (stocks) of a publicly quoted company. A publicly quoted company is not just any company but a company that's been registered on a stock exchange. When you buy a stock, you actually buy a part of the company, although you have minimal influence on how it is run. If the company does well your stock will gain value, and if the company does bad the stock will lose value.
The difference between the decentralized currency market, where all trades are done online, and the stock market is that a stock exchange is a physical place. Some of the most well-known stock markets are the London Exchange and the NASDAQ in New York.
Stocks can be traded in groups called an index. The Dow Jones and S&P 500 are two of the most well-known indices. An index represents the average price of the included stocks.
We love stock trading because it’s a versatile form of trading that’s perfectly suited for both long-term investments and day trading. Stocks are, in other words, something that most people can appreciate.
Day Trading with Contract for Difference (CFD)
CFD trading is different from both currency trading and stock trading because you don’t actually buy a security. Instead, you speculate on the price of an underlying asset.
A CFD is a contract between you and a seller (in this case a broker) that represents the value of an underlying asset. The asset can be anything from a specific currency pair to a stock, a commodity, or any other financial instrument that you can invest in.
Your goal is to buy a contract with a prediction about what you think will happen to the price of the asset. Will the price increase or decrease?
The contract only includes the value of the asset and not the condition or time of sale. That means that you can hold on to a CFD until it makes a profit even if the market starts moving in the wrong direction. Because of this CFDs are mostly used for short to mid-term investments. We usually buy CFDs planning to sell them within a few hours or at the most a few days.
One of the many benefits of CFD trading is that you can invest in bearish markets, unlike stocks and currencies that can only bring profit if the market is bullish.
Trading Binary Options
Binary options trading is day trading in its purest form. You rarely buy binary options for more than a few minutes or maximum a couple of hours. Similar to CFDs your goal is to speculate on the value of an underlying asset. The main difference is that you usually have more assets and markets to choose from. Binary options are also time-based and developed specifically for small and quick market movements. And trust us when we say that the market is fast. Like super-fast. Today, you can buy binary options for as little as 5 seconds.
We have been interested in binary options since they were first launched to the public and it is not unusual for us to sell and buy a few dozen binary options each on a daily basis. Also, most of our binary options investments rarely last for more than a minute or two.
The reason why many people prefer binary options over traditional securities is that you gain access to more markets. It is also fairly easy to learn. Another benefit is that binary options offer controlled risk, meaning that you can only lose the invested amount. Normally, the possible payout is between 75% and 95% of the invested amount. But the numbers differ depending on the option, broker, and underlying asset.
For example, if you predict that the price of USD/GBP will be higher in two minutes you can buy an option worth $100 with a possible payout of 80%. If your prediction is correct you will get you $100 back plus an extra $80 (total $180). If your prediction is incorrect you’ll lose your $100. Pretty straightforward, right?
Binary options can also be used on bearish markets giving you more options than other more traditional forms of trading.
In the context of this website, commodity trading is somewhat of an alternative form of investment. However, in general, commodity trading is a traditional form of investment.
As the name proposes, this form of trading involves commodities. Your task is to buy a commodity that you think will increase in value and then sell it for profit. A commodity is an unprocessed product that is traded in its natural state. Gold, crude oil, coffee, and sugar are examples of popular commodities.
The price of commodities are known to fluctuate, making commodity trading best suited for day trading and not longer investments. It can be hard to predict what will happen to the price of crude oil over the coming year, but easier to figure out what will happen before tomorrow. The main issue with oil is that there are so many factors that can affect its value - ongoing wars in the areas where the oil is being extracted, new oil fields being found, political lobbying, climate laws, etc.
With that being said, commodities can also be used for long-term investments. However, we only recommend investing in commodities long-term if you actually have reason to believe you know what will happen on the market.
Day Trading Cryptocurrencies
Cryptocurrencies, also known as digital currencies, are the latest hype in the online trading community. Many hardcore trades refuse to acknowledge cryptocurrencies as “real” investment opportunities, but in our opinion, they are some of the most interesting and lucrative opportunities available.
The main benefit of cryptocurrencies is their extreme market movements, both in the long and short run.
Let us explain using Bitcoin as an example.
Since Bitcoin was released in 2009, its value has increased by several thousand dollars. In 2009, you could buy 5 Bitcoin for less than $50 and today you could sell those same Bitcoins for more than $20,000. As you can see that was a great long-term investment opportunity. However, Bitcoin’s value has also increased by several hundred percent during 2017. On some days the price difference from when the market opens until it closes is several hundred dollars, and that my friends presents extreme opportunities for day traders.
We can offer you all the information you need to start trading cryptocurrencies and hopefully become successful. Our goal is to provide you with personal advice as well as practical tips about the best brokers and the hottest digital currencies.
We can also help you if you’re interested in cryptocurrencies but are not quite sure of what they are. In order to do that, we have written detailed descriptions of the following cryptocurrencies:
The Best Day Trading Brokers
Regardless of the type of investment, you will need to use an online broker to gain access to the respective market. A broker acts as the middleman between you and the market. Brokers also offer tools and trading platforms where you can analyze the market and follow your investments.
Today, there are several hundred brokers to choose between and it can be a daunting experience trying to find the one that's best for your personal needs. Luckily, we have several years of experience in the industry in which we have gone through more brokers than we are comfortable admitting.
Some of the brokers that we’ve used over the years have stopped operating, some of them have merged, and a few have been our favorites from the start. The point we’re trying to make is that we have learned a lot about what’s required from a good broker and how to spot scam brokers that should be avoided.
To help you avoid the extensive work of testing and evaluating brokers we have decided to recommend the brokers that we think are the best ones on the market right now. To make it even easier we have created lists of the best brokers based on the different markets. We’ve also written detailed reviews about their services so that you know what you can expect from each one of them. Below you’ll find a summary of some of the top brokers for day trading.
Markets.com is our absolute favorite and first-hand choice. They offer currency and CFD trading and have one of the best collection of cryptocurrencies on the market.
Plus500 is another industry leading broker that offers CFD, forex, cryptocurrencies, and more.
eToro is a broker with a social trading network where you can interact with other traders, sharing tips and even copying other’s strategies.
IQ Option is one of the best brokers for binary options on the market.
BDSwiss offers access to CFD, currencies, and binary options and is a favorite of many.
The Latest Day Trading News
The single most important skill of any successful trader is the ability to analyze and evaluate the market. It’s a skill you can learn by studying hard and something you will have to dedicate a certain amount of time on. However, the most important part of any correct market evaluation is to stay updated on current world events and news. If you’re not aware of what’s happened as well as what's going on right now, you won’t be able to predict what will happen in the future.
To help you with this, we offer the latest news and updates right here on BullMarketz.com. We share well-written, relevant, and detailed news articles that you can base your investments and strategies on.
All the news will be published on the website but can also be delivered right to your inbox through our newsletter.
We have also decided to offer something we call the crypto-puls. It is a weekly update of the latest in the cryptocurrency world. We will answer questions like, what are the current prices? What can we expect from the coming week? And so on. Our crypto-puls is a practical tool for everyone who is interested in digital currencies and something that we wished we had had access to several years ago when we first started trading cryptocurrencies.
A Few Final Words
The above is a short summary of what we want to offer our readers. Our main goal as we mentioned is to educate traders on all levels - from absolute beginners to more experienced traders like ourselves.
By offering you the latest and most relevant information, we hope to provide you with the best possible conditions to place profitable investments in all markets. It doesn't matter if you want to focus on long-term investments and savings or pure day trading.
Our website is the ultimate resource for everything related to day trading and investments. We have spent many years investing in the above-mentioned markets and have always wished that there was a one-stop resource for us to use. We always wished there was a book or a website with all the information we needed and all the answers to our questions.
Unfortunately, we never found such a source which is why we created BullMarketz.com. Above all else, we hope that you will find the information we share useful.
With that said, we want to offer you good luck with your investments! And please don't hesitate to contact us if you have any questions.