How To Start Day Trading? Learn all about trading at CAPEX.com

Day trading is becoming increasingly popular with casual investors as the plethora of online brokers and trading platforms have made it more accessible than ever. However, many would-be traders feel bewildered when entering the world of finance for the first time.

Here at CAPEX, we think that starting off with a strong foundation of knowledge gives traders the best chance of success. With this in mind, we have put together the following guide on how to start day trading.

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Learn more about trading

However you choose to approach the financial markets, education and research is hugely important. This is why at CAPEX we have put together a comprehensive educational resource – our CAPEX Academy, our online trading school.

We give you access to numerous guides and how-tos, covering everything from the various financial instruments to how to make your first trade. In addition to the academy, we also offer numerous resources for tracking the latest market news and keeping up to date with the latest trading strategies.

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Trade in numerous markets with CFDs

At CAPEX, we offer trading in over 2100 different instruments. Whilst this may sound overwhelming to some, many day traders find they can quickly get to grips with several different markets, including forex, cryptocurrency, bonds, commodities, shares and indices.

This is largely down to the fact that CAPEX specialises in the trading of derivatives known as Contracts for Difference. CFDs are perfect for day trading because they allow traders to speculate on the price movement of anything from forex to bonds, without ever having to take ownership of the underlying asset. Naturally, this makes CFDs perfect for higher volume trading.

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What is day trading?

Before learning how to day trading, it’s important to understand the basics. Day trading differs from traditional investing in that – unsurprisingly – positions are generally opened and closed within a single business day. Whereas investing often involves tying funds up for years in the hope that a stock or commodity will go up in value. Traders, on the other hand, look to make numerous, small transactions throughout the day.

How does day trading works?

The idea is to take advantage of the small price fluctuations that occur across the various financial markets day-to-day. The great thing about trading is that you can bet on an asset price going up or down.

We, at CAPEX, offer an award-winning platform for day trading – something which, if done right, can provide a lucrative income stream. However, we often find that there can be a little confusion as to exactly what’s involved.

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Start day trading in 5 easy steps

As we’ve mentioned, day trading is highly accessible thanks to modern technology and by following a few simple steps, you can be up and running in no time at all. However, we do recommend doing your homework before jumping into the markets – which is why we have put together this guide.

Find a broker

First things first, if you want to start trading then you’ll need to find a suitable broker that can provide access to the markets you are interested in – whether they include forex, cryptocurrency, stocks or any other form of asset.

This step is worth taking some time over and is important to learn how to choose an online broker – after all, there’s no point opening an account with a trading platform if it doesn’t offer the services you need.

Open an account

Once you’ve chosen a suitable broker or exchange, then you’ll need to register and set up an account. This will require you to input a few details, such as your name, address and email. It’s important to ensure these details are accurate, as any reputable platform will ask you to verify them before allowing you to start trading.

You may also find that your chosen platform offers more than one account type. For example, at

CAPEX, we offer five account types to suit every level of trader – from the novice coming to the market for the first time, right up to the professional making numerous transactions every day.

Research your market

If you want to put yourself in the best position for success as a trader, then you need to do your homework. It’s fair to say that day trading has a fairly steep learning curve – not only do you need to get to grips with complex trading tools, you also need to learn which factors affect your chosen market.

Fortunately, platforms like ours at CAPEX often provide invaluable information resources to help you learn how to start day trading. Our CAPEX Academy, for example, can tell you everything you need to know about the various financial assets available, as well as give you an overview on different strategies and approaches to day trading.

Make a Plan

Once you’ve set yourself up with a day trading account it’s a good idea to take some time to set up a basic plan of action. This doesn’t have to be anything complicated – it can be as simple as coming up with a weekly schedule and budget. You might also want to start by focusing on a particular market until you have learned the basics of day trading.

Start making trades

Once you’ve opened an account, done a little research and come up with a basic trading strategy, then you’re ready to enter the market. Don’t forget, at CAPEX we do offer a demo trading account, so if you are still a little uncertain on exactly how to start day trading, you can always make a few practice ones first.

Try day trading with a demo account

This means you can learn by trial and error, making trades in a real-world environment. If you want to learn how to start day trading then this experience, combined with the educational resources in the CAPEX Academy can prove invaluable.

Tips for finding the right trading platform

If you are looking to start day trading then you will of course need to find a reliable broker or exchange that will allow you to access the market(s) of your choice. This is a decision worth taking some time over and we think, at the very least, the following considerations are essential:

Licence and regulation

Only ever consider using brokers or exchanges that have the necessary licencing and regulation credentials to operate in your jurisdiction. If a platform holds a licence, then this means there is a degree of accountability and protection for you as a user. Any reputable firm will make their licencing information freely available. For example, here at CAPEX, we display details of multiple licenses in the footer of our website.

Customer service

Even the most experienced trader needs help from time to time, so it’s important to check that your chosen provider offers adequate customer support. Ideally, there will be multiple ways to get in touch and help should be available in your language. Given the nature of day trading, it’s also important that you can get in touch in real-time – such as via webchat or by telephone.

Account options

At CAPEX, we realise that not every trader has the same objectives or level of experience. That’s why we offer multiple account types, to ensure our users can find a package that suits them. If you’re looking to start trading, then having options when it comes to your trading account can help you keep costs down and get access to appropriate trading tools.

Trading platforms

In addition to different account types, it’s also important that a platform offers more than one trading platform. For example, a novice trader might prefer our CAPEX web trader, whilst those looking for more complex charting options might want to use the MetaTrader 5 platform. It’s also worth noting that some trading platforms are better suited to particular markets than others.

 

Register

Register

Register an account on CAPEX.com and start trading.
Verify

Verify

Send over your documents and verify your account.
Deposit

Deposit

Login into your CAPEX.com account and deposit money.
Trade

Trade

Start trading with CFD’s and over 2100 other instruments.

Things to remember when day trading

Once you’ve chosen a suitable provider then you’ll be ready to enter the markets. Remember, day trading is a skill that must be learned and you cannot expect to be successful right off the bat. You can, however, give yourself the best possible start by doing your research in advance – perhaps using our CAPEX Academy.

It’s also important to be aware that day trading is not the same as traditional investing. You will need to be a lot more active and give the markets your undivided attention – this is why we recommend having a trading schedule.

Finally, remember that trading platforms put numerous tools at your disposal. Make sure you understand their function and use them to your advantage whenever possible. For example, you can set a stop/loss order to minimise losses if a position turns against you, or a take/profit order to close a position once you have reached a target price.

How to: day trading

By now you should have a fairly clear idea of how to start day trading. To recap, these are the steps you will need to take

  • Find a reputable broker
  • Open the right account for you
  • Spend some time researching
  • Use a demo account
  • Start making trades

Conclusion – Day trade CFDs at CAPEX

Day trading refers to a particular way of trading financial instruments that takes advantage of short term volatility. The approach differs from traditional investing in that traders typically make numerous transactions throughout the day, rather than waiting months – or even years – for an asset’s value to appreciate.

At CAPEX, we want to make the markets accessible to everyone, which is why we provide market-leading educational resources and account types to suit every level of trader. If you think that you might want to explore the possibilities of day trading, why not test the water with our demo account?

How To Start Day Trading – FAQ

🤷 What’s the difference between trading and investing?
🤔 Is trading for me?
📈 What is day trading?
🤔 How do I start trading?
⚖️ What’s better – trading or investing?