When it comes to trading, it can be challenging to choose from numerous approaches and strategies. Whether you want to get into short-term day trading, or long-term trading, it is not possible to know which strategy would work best for you. This is why it is a good option to practice trading with virtual money before putting your real money at risk with a broker that offers a free demo account.
Basics of day trading
Day trading is one of the popular approaches for traders who prefer very active and short-term trading. In day trading, the trader buys and sells the asset within the same day. Day traders generally close all deals before the day ends to avoid overnight fees. However, this approach can be risky because the price must change quite a bit for the trader to get any payout. Moreover, there are risks of losing the investment as well. This is why day traders typically make about 20 to 50 deals per day with the objective of adding up small gains. If you want to earn a decent amount from day trading in India, you must learn how the market works and how to implement indicators and other analysis tools in order to make fast decisions.
Useful strategies for day trading
Take a look at these popular day trading strategies –
- The Breakout Strategy: This strategy involves the utilization of support and resistance lines that are the potential levels of a trend pause. The Breakout strategy follows the concept that the asset price breaking through the support or resistance line signals a strong trend that is going to continue its movement. Hence, traders sell if the price goes beyond the support line and buy if it breaks through the resistance line.
- The Scalping Technique: With this approach, day traders make numerous short-term deals with 1 to 5 minute timeframe and a small investment amount. Small payouts can add up to larger amounts but high spreads may become an obstacle to this strategy. So, you must wisely choose the security that you will be trading.
- The Reversal Strategy: The utilization of support and resistance lines can play a role in spotting a strong reversal of the trend. Short-term reversal can be highly important in day trading. When the price bounces off the support line and starts rising, day traders would buy. To the contrary, if the price bounces off the resistance line and drops, it is a signal to sell.
How much can you make from day trading in India?
Earning from the financial markets through trading depends on many factors and market conditions. So, it is nearly mathematically impossible to estimate. However, a question was raised lately on an online knowledge-sharing forum. The user asked enquired if it is possible to make 6% profit per day from day trading.
In the reply section, one person said that it may be difficult but it is possible. He outlined an options strategy that may fetch up 14% in 90 minutes. Options bring high returns but they are also high-risk instruments where traders have to predict an underlying asset’s price movement. However, there is no sure-shot solution to be certain of this prediction. Another user commented that it is even possible to get more than 6%, while another stated that a day trader can earn 4% to 18% per day. Other commenters advised caution, pointing out that many traders could have earned thousands of crores by now if such returns were possible. However, although a return this high is not realistic, yet you can earn pretty well by following the strategies the right way and by being cautious about risks.
Trading in India
Trading, especially binary option trading is not new in India. In fact, the popularity of option trading has been growing massively for the past few decades. Since the financial crisis of 2008, it has been considered an easier way of income because of the straightforward and interesting way of trading. However, it is not yet regulated in many countries, which leads traders to wonder if it is legal in India.
First, you need to know the difference between something that is not regulated and something that is illegal. Trading is not illegal in India; it is just unregulated. If you want to start trading, you must take your time and educate yourself about the rules. Keep in mind that you must invest your money in a safe place. Therefore, research well so you can pick a broker that can provide you with the best of the trading services. For example, a top-notch broker like IQ Option can be a great choice for you.
Trading with IQ Option in India
IQ Option accepts traders from India. Currencies available for Indian traders include USD, EUR, CBP, and RUB. It is a fully functional broker with graph movements, easy deposit and withdrawal options, and more. You can trade with this broker with a stable internet connection. The browsing experience can be enhanced by clearing the cookies from the browser. IQ Option also provides Indian traders with customer support. You can contact the broker via phone, mail or live chat 24/7 in any modern language. Last but not the least, the broker also offers a demo account for its users.
IQ Option demo account
The demo trading account offered by IQ Option is one of its most important and useful features. It allows beginner traders to get acquitted with different mechanisms of margin trading and they can do it without risking any money. It is not only useful for beginners but also experienced traders who use it in order to test their trading strategies. IQ Option’s superior demo account resembles its live trading account perfectly. It is ideal for you if you want to prepare yourself for live trading with real money through practising accurate simulated trading with virtual money.
Day trading does not promise anything, but you must try to utilize its potential.