Day trading in Australia
Binary options are just one of several types of financial instruments that can be used to earn large amounts of money quickly be skillfully predicting future market movements. There are a number of other instruments that you can use to day trade your way to large profits. Day trading is the collective name used for different trading techniques that are used to earn profits from intraday fluctuations in the value of publicly traded assets such as stocks, commodities and currency pairs.
A day trader moves in and out of the market quickly to benefit from the volatilities on the market. Most assets go up and down in value hundreds of time each day. It is rare for a day trader to keep a position overnight. In most cases, he (or she) will sell his position within minutes (or even seconds) of buying it. The goal is to move in and out of the markets as it goes up and down. Most day traders used leveraged financial instruments to be able to make large profits from small market movement.
Is it hard to become a day trader?
Making money from day trading does not require you to be a mathematical or financial genius. You do however have to be willing to be dedicated and work hard if you want to succeed. Day trading is a job as any other, and the more time you spend on learning the secrets of the trade the more successful you will become.
About 75% of all those who attempt to become day traders fail and lose money. About 25% succeeds in making money from day trading. This might seem like poor odds, but the truth is that the odds of success are high if you are willing to learn how to succeed. Most people who fail are looking to make quick money and does not take it seriously enough to be able to succeed. By devoting yourself to day trading and using demo accounts before you start trading using real money you will have a more than 50% chance of succeeding.
What do I need to become a day trader
The most important thing you need to become a day trader is the will to learn and the will power not to start trading before you are ready.
You will need a good internet connection. The most important is that the connection is reliable but it is also very beneficial if it is a fast connection. The maximum speed is not very import. The most important factor is that the connection connects to the broker website quickly (Low ping time). A connection that is slow to connect can make it hard to benefit from small market movements and can cause your orders to be declined due to the market value of the asset having changed before the order received and completed.
You will also need an account with a good Australian day trading platform. There are several different platforms to choose from. A good day trading platform should offer you to trade CFD:s and forex certificates, as well as other, leveraged products. Leveraged products are the key to earning a living as a day trader on a limited budget. They allow you to earn the same profits you would be able to earn with a lot larger budget. Leveraged financial instruments carry a lot higher risk than non-leveraged instruments.
Read a more detailed guide on how to start day trading in Australia.
Examples of good day trading platforms
HighLow is the natural choice for many Australian binary option traders, since it is a fully regulated provider based right here in Sydney. It is regulated by the Australian Securities and Investment Commission (ASIC) and licensed under AFSL No. 364264. The money you deposit into your account isn’t kept in a normal company account by HighLow. Instead, your money is held in a separate trust fund operated by the National Australian Bank (NAB). Read more
IQ Option is based in Cyprus and regulated by CySEC. Since Cyprus is a EU member, IQ Option must also adhere to applicable MiFID regulation. In addition to this, IQ Option is registered with the UK Financial Conduct Authority (FCA), reference #670182. Read more