Zebu blog

Tag: Profit Potential

  • Swing Trading Vs Intraday Trading – Which One Should You Choose?

    Let’s start by understanding the different ways of trading. The main differences between the two ways of trading are investment, commitment, and time. Traders choose different trading strategies based on time, money, and psychological factors.

    Intraday Trading

    The Financial Regulatory Authority (FINRA) says that day traders are people who do many “round trips,” at least four of which happen every five days. Day trading might be the most common way to trade. Most traders are day traders, which means they make money from the price changes on the market during the day. All-day trading takes place in a single day, as the name suggests. Traders open a number of positions during trading hours, which they all close before the end of the day.

    Day traders use technical analysis and tools to get real-time updates. They often trade full-time and keep a close eye on the market for business opportunities. At least in terms of percentages, day trading gives people with small trading accounts more chances to make money. They don’t try to make a lot of money from one trade. Instead, they should do a number of transactions to make enough money.

    In the end, day trading is a type of high-frequency trading that involves small amounts and always buys stocks for less than what they sell for.

    Swing Trading

    The main difference between day trading and swing trading is the length of time. During a swing trade, days or weeks can go by. Swing traders don’t make a trade until they see a pattern. They don’t trade full-time, but they use both fundamental and technical research to spot trends as they happen and trade in line with them. They would look for stocks that could make them the most money quickly. There is more risk, but there is also more chance of making money.

    Differences between day trading and swing trading that are important to know

    Swing trading and day trading are both types of trading, but they are not the same. Here are some of the most important differences between the two ways of trading.

    • Day traders buy and sell a lot of different stocks in the same day. Swing traders buy and sell a number of stocks over a longer time period (usually between two days to several weeks). So that they have a better chance of making money, they look for a pattern of trends.

    • Day traders will close out all of their positions before the closing bell rings. Swing traders would hold their position for at least one night before settling it the next day.

    • Swing traders only work for a few hours each day. They don’t spend the whole day tied to their computers. Day trading takes a lot of time and commitment.

    • Day traders make a lot of trades every day, which increases their odds of making money. Gains and losses, on the other hand, are smaller. Swing trading has fewer wins and losses, but they are often bigger.

    • Day traders need the newest hardware and software. Day traders must have extremely rapid trigger fingers. You don’t need complicated or cutting-edge software to do swing trading.

    A trader’s main goal is to make as much money as possible. So, between swing trading and day trading, which is better?

    Even though both ways of trading have many pros, you should be aware of their cons before choosing one. The list that follows goes over the pros and cons of each one.

    • Swing trading needs less attention because it takes place over a longer period of time. Day trading, on the other hand, requires regular market watching and quick decisions.

    • Day traders try to make as many trades as possible to make the most money in a single day, while swing traders try to make a big profit.

    • Swing traders take on more risk when they leave their position open overnight. On the other hand, day traders close their trades at the end of the day. So, there is no longer any risk.

    • Swing traders wait until a deal has been going on for a while before using that time to watch how the market moves. It helps make things safer. Day trading is easier for most traders to do because it needs less capital than swing trading. Day traders have to make trades quickly because one loss could wipe out their whole day’s profit.

  • The Common Misconceptions About Currency Trading In India

    Trillions of dollars change hands every day on only one market – the forex market. If you’re interested in trading foreign currency online, this post is for you. Here are 10 of the most common FX trading myths.

    1. It’s easy to trade in forex.

    This is one of the most common misconceptions about forex trading. But it’s just plain false. Foreign exchange trading is hard and requires a lot of market research, planning, and knowledge of how the market works.

    2. It is necessary to predict movement

    Traders who do their FX trading online often make this mistake. They think that if they can predict how the market will move, they can make more money. But it’s really not that easy. Instead of trying to guess what will happen, it’s easier and more accurate to just follow the trend.

    3. You must make a substantial investment.

    One of the good things about the FX market is that you don’t have to spend a lot of money to trade there. In reality, the way the market works is based on the idea of leverage. Leverage is when you put in a small amount of money but can take on positions that are much bigger than what you put in.

    4. Using more leverage is smart.

    In line with what was said before, many traders think that the more leverage they use, the more money they could make. Even though this is true, the same strategy could also fail. For example, if your position doesn’t go as planned, you could lose a lot of money because you have more money at risk.

    5. You must always keep an eye on the market.

    This is another one of the most common mistakes people make when they trade FX online. Even though the market is open all the time, you don’t have to keep an eye on it all the time. Just set aside a certain amount of time every day and use it to keep track of what’s going on.

    6. It’s easy to get rich quickly.

    People often think that trading forex online will make them rich right away. But that’s not the case. To do well and make money, you would have to be very focused and do a lot of research.

    7. The most advanced forex strategies always work

    Even though they have their place and time, complex techniques may not always work. Your goal and the direction of the market should be the main things that tell you what strategy to use.

    8. The forex market is rigged

    If you make a few bad trades, you might start to believe this false idea. But it’s just a myth; there’s no truth to it. Because the forex market is so big, it is impossible for one business or a small group of businesses to control it.

    9. You can use the strategies of other people.

    Trading foreign currencies online is not as easy as it looks. Since traders’ expectations and the way the market is moving now may be different, the strategies that work for one trader may not always work for another. It is always better to come up with and use your own approach instead of copying what others do.

    10. The more trades there are, the better your profits can be.

    You don’t have to do a lot of deals to do online FX trading. If your plan is well thought out and your goal is reasonable, you can make money with just a few trades each month.

    Conclusion

    After the myths about it were busted, you can now join this financial market and start trading FX. To trade in FX, you would need a demat account and a trading account. You can quickly open a trading account and a demat account at Zebu.