Day Trading

When you read that a share price finished up 2%, it might not sound that exciting. However, if you were to know that over the course of the day the shares traded -5%, before rallying significantly to be +5% and then falling again before closing +2%, a very different picture is painted – that of a 10% high to low trading range. It is this type of share price activity that day traders look to capitalise on, and they are rarely left twiddling their thumbs as many stocks display these characteristics on a daily basis.Day traders look to ride the intra-day up moves and down moves in succession, taking profits and even going back in at each turning point. So it’s just trading intra-day (in fact, intra-day trading is a more suitable name for it). It’s not some new and complicated concept – just trading on a shorter time scale than you may be used to. With many shares trading in ranges of 5% – 10% on a daily basis, day trading provides you with the opportunity to make in one day what other investors might make in a year or more.

Why should you day trade with Accendo Markets?

Accendo Markets gives you the ideal environment in which to day trade. If you want to go it alone, that’s fine. We provide the best online trading platform in the business as well as exclusive daily and weekly research publications – exactly what you need to trade the way you want to.

If you want some information, just put in a call to your dedicated trader. Want to be called at 7.45am sharp every morning and get the lowdown on your positions or favourite, securities before the market opens? That’s part of the service if you want it – and all at no extra cost. Want to deal over the telephone rather than online? Guess what… your dedicated trader can take care of that too. At no extra cost.

Accendo Markets provides exclusive research material to its clients including pre-market morning reports, key trading levels for European and US indices, trade ideas and live macro-economic data – all on a daily and intra-day basis, and that’s not to mention your trader who will ensure you are the first to know when anything happens in the markets that might affect your holdings. What’s more, we won’t ever tell you what to do.

We provide you with the facts. How you act on those is completely up to you. Given the amount of information we are bombarded with all day, every day, there really is no better place to day trade. With Accendo, you’ve got every angle covered.

But enough about how we can help you profit from day trading. Read on to find out how the professionals trade intra-day and you’ll soon realise that it’s not as complicated or daunting as it may seem.

Day Trading Toolbox: Technical Analysis

Technical analysis, otherwise known as ‘charting’, is widely used by professional and amateur day traders alike. It involves forecasting the movement of asset prices by studying past data, which typically includes price and volume plotted on the graph/chart. Technical analysis is essentially concerned with the anticipation of crowd behaviour (herd mentality) and market sentiment. This contrasts with fundamental analysis, which is concerned with an asset’s ‘fair value’.

Importantly, the basic principle of technical analysis is that an asset’s price reflects all relevant available information. An asset’s trading pattern, rather than external drivers such as economic, fundamental and news events, should tell the day trader all they need to know. Price action tends to repeat, because crowds tend toward predictable, patterned behaviour – hence the technical analyst’s focus on conditions and trends. What’s more, current technology has made technical analysis accessible and digestible to even the very least technically minded traders.

It is this powerful toolbox that is an indispensable part of the day trader’s arsenal. Technical analysis gives you indications of what is happening behind the scenes, before that news breaks. Furthermore, it’s not as complicated as it sounds – all you need to do is learn to recognise potential signals by way of just a few simple ‘technical indicators’ (the underlying workings of which you do not need to be able to understand).