21st Oct2021

Day Trading – From expert investors to a popular hobby

by James Smith

Day trading isn’t just for professional investors anymore. People all over the world have picked up this type of trading as a new hobby. Day trading is so popular that there are now mobile apps available to use on your phone! What is day trading really – and why has it become a thing?

Buying and selling on the same day

Day trading is the act of buying and selling financial assets within the same day. It’s an active trading style where you don’t take positions overnight. Trading can be done with, for example:

  • Stocks
  • Cryptocurrency like Bitcoin
  • Forex (Foreign exchange money)
  • CFDs (Contracts for difference)

Why is day trading popular?

With advancements in technology, trading has become more accessible than ever. You can find useful and in-depth day trading guides on the internet. On social media, people share tips and thoughts. This also leads to new people taking up the hobby. You no longer need to be a professional investor to enjoy the benefits of trading, thanks to all the information available.

As you probably know by now, the main idea of day trading is to capture small profits off the movement in price. If you have a smart strategy, this can turn out profitable. The possibility of quickly making a profit and the fast pace are two more factors that have led to the popularity of day trading.

Trading as a hobby and full-time job

There are different kinds of day traders out there. People who use it as a form of income or their primary source of money, and those who just gamble away at some stocks. There’s no need to gamble with your money though; learning some basic strategies will quickly improve your chances.

While most people stick with day trading as a hobby, some take it a step further and trade in order to make big profits. The media has even reported about some people quitting their jobs to go full out on day trading, especially with crypto day trading. This, naturally, comes with a big risk. You need to have plenty of insight, do your research, and follow the market to maximise your chances of being successful.

Day trading on your phone

The difficulty in day trading isn’t getting started, but rather choosing a broker where you will do your trading. There is a huge number of apps and websites with trading platforms available. Compare different providers in order to find one that will fit your preferences!

An increasing amount of people prefer using their phones for trading. If you have a smartphone with iOS or Android, you will find that most of the highly-rated brokers offer a good app for download. Check the reviews and have a look at the interface before you make your choice.

If you’re a beginner, you probably want to stick with a simple interface and won’t use the advanced tools much. Look for features such as customer service directly in the app, secure log-in systems, and fast loading times. You don’t want an app that unexpectedly crashes while you’re in the middle of taking a position!

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