Day Trading

It is hard to predict the right movement of the market with its current state, but the truth is that traders make profits either the price goes up or falls. What is needed is the right skills, proper research and the use of technical analysis. There is a trading practice crypto traders should know about; Day trading. It might not be necessary for a trader to utilise this but it is important to know how it works.

According to Wikipedia: "Day trading is a form of speculation in securities in which a trader buys and sells a financial instrument within the same trading day, so that all positions are closed before the market closes for the trading day to avoid unmanageable risks and negative price gaps between one day's close and the next day's price at the open".
It should be in mind that wikipedia's definition encompasses other financial instruments (stocks, bonds, etc).

Day trading simply means buying and selling of crypto assets in the same day, capitalising on the changes in price of those assets in a short period of time. To be a successful day trader, you will need to monitor market and news, have a deep understanding of the market, how market strategies work, and the risks attached. Day trading involves high risks and high rewards, which also be high loss if not done the right way. Day traders are speculators.

What a speculator do is to engage in risky financial transactions in an attempt to profit from short term fluctuations in the market value of a crypto assets, most time ignoring the fundamental analysis but spend more time on the technical analysis. With speculators, it is all about price movements. Day traders are very much aware of the risks involved and tend to use high leverage to get profit at a short period of time, they are fully aware of the fact that this can turn to a loss.

About OKEx
A world-leading cryptocurrency spot and derivatives exchange, OKEx offers the most diverse marketplace where global crypto traders, miners and institutional investors come to manage crypto assets, enhance investment opportunities and hedge risks.

We provide spot and derivatives trading — including futures, perpetual swap and options — of major cryptocurrencies, offering investors flexibility in formulating their strategies to maximize gains and mitigate risks.

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OKX Africa

OKX Africa

The African section of the world’s largest one-stop cryptocurrency exchange; security, liquidity, ease of use & competitive rates all in one place.

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