What is day trading based on?

This type of trading is based on the theory of supply and demand. When a stock is bought in huge amounts, its supply diminishes. It drives its prices upwards. The same is true in reverse. Day traders who can spot the buying or selling pressures and act at the right time can make good profits.

What parameters are important for day traders?

The following parameters are essential for almost all day traders regardless of the trading strategy: 1. Volatility This is a variable that measures the range of price fluctuations of a security. Volatility is helpful for day traders, as it provides them with more opportunities to capture profits from short-term price changes. 2. Trading volume

Are day traders profitable?

Day traders look for extremely short-term price changes in the stock or forex market, allowing them to accumulate profits over the course of a trading day. Although it can be profitable, it also comes with a high degree of risk—especially for traders on margin positions.

Why do day traders use charts?

Charts are crucial for the technical analysis of securities, which is the form of analysis most commonly used for day trading. Day traders often favor using candlestick charts. Candlesticks provide a clear visual display of the high, low, opening, and closing prices for a specific time period.