Learn day trading: The right choice of market

Learn day trading: The right choice of market

trading broker

Which markets should one trade in day trading? - Many beginners ask themselves this question. From my trading experience and the knowledge of professional day traders, you should rely on liquid markets. Not every market is liquid (low trading volume) and traded a lot.

The most heavily traded markets are suitable for this, as the supply and demand is very high.

Recommended markets:

  •     Stock indices (S&P500, DowJones, Dax30 etc. are highly liquid).
  •     Major currency pairs (all pairs linked to the USD are highly liquid)
  •     Well-known commodities (oil, gold, copper, wheat, coffee)


Profitable day trading in the stock market is no easy feat. Everyone has access to the markets, but only very few are sustainably profitable.

Day traders only trade derivatives or large positions in stocks. Derivatives are leveraged trading positions with an underlying asset (market). Various financial products can be used for this purpose. In most cases, these are either CFDs (contracts for difference) or futures (forward contracts). CFDs are the most popular because contracts for difference can be traded with a very small initial capital and provide quick access to all markets.

Tips on financial products for day traders: 

  •     CFDs are traded as contracts on futures, stocks, commodities & more. You can start with small capital.
  •     Futures are traded directly on the stock exchange. A capital of 20,000€ upwards is recommended, because the minimum position sizes are very large.
  •     Leveraged positions are necessary because only very small movements are traded.

Personal experience: The pros and cons of day trading

forex trade

Why should one start day trading? - Like any other trading style, there are advantages and disadvantages here. In general, many traders are fascinated by exchanging their job for stock market trading. Just spending your working hours in front of the computer and making money is tempting.

The advantages also lie in realising a profit quickly. While longer investments yield a few percent a month, a day trader makes his daily percentages with swap Exness conditions. In addition, he saves swap costs (financing costs, interest) on leveraged derivatives that accrue overnight. In general, however, trading fees are higher because the trading frequency in day trading can be very high.

What do I need for day trading?

How do I start learning day trading? - Thanks to electronic trading and the internet, it has become very easy to start day trading. All you need is suitable software and a broker. You can often use the software for any device (computer, smartphone, tablet). It offers you many analysis options to make the right decisions on the markets.

Beginners can create a free demo account. This is an account with virtual credit and it simulates real money trading. You trade without risk. It is perfect for learning and testing trading.

In many cases, the broker offers one or more suitable trading platforms at the same time as access to the markets. Thanks to the strong competition on the internet, these are professionally programmed and offer everything you need for day trading.

You need: 

  •     Day trading broker (Gives you access to the markets).
  •     Trading software
  •     Start-up capital or demo account (practice account)
  •     Suitable trading strategy

It is very important to have a fast internet connection. Sometimes miliseconds decide about a profit or loss. The broker must also play along. Unfortunately, some providers offer order execution that is too slow. Therefore, the broker should be tested thoroughly before depositing real money.

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