Many people have heard the buzz about day trading. They have all heard the stories of fortunes being made and lost. With day trading accessible to anyone with a phone or Internet connection, along with the lure of tax free trading it is becoming more popular then ever. With its ever increasing popularity, many more people are asking themselves, what is day trading? What's all the fuss about?
Well guys and girls, for those of you that are still in the dark as to what exactly day trading is, let me give you a brief introduction, so that you can finally understand what day trading is.
What is day trading?
Day trading, otherwise known as spread trading, allows you to speculate on the global stock market, property futures, indices, commodities and currencies. You can trade from anywhere in the world that has an Internet connection, as many financial bookmakers now have online dealing platforms. In fact, in most cases you can trade 24 hours a day.
Unlike conventional stock trading, when you start to day trade you don't actually buy the stock that you wish to speculate on. What you are actually doing is placing a spread bet and speculating on where you think the market is heading. The good thing about day trading is that you can make a ton of cash even when the market is heading south, as you can speculate that the market will go up or down.
One of my favorite parts about day trading is that in many parts of the world the profits are all tax free. The reason for this is that all profits are seen as gambling winnings and not taxable income.
In a nutshell day trading allows you to speculate on global markets, and allows you to start trading almost instantly. Day trading can be highly beneficial to many investors. The key to being successful is to study how to trade effectively before you part with your cash. This is made extremely easy for you now as many financial bookmakers offer virtual trading accounts.