Day trading in the UK: a complete guide
Published on: 05/11/2021 | Modified on: 12/07/2022
Day trading is a popular short-term strategy. This approach has become increasingly popular for trading on the move or at home, thanks to technology such as mobile apps. But despite its convenience, day trading is not for everyone. You need a cool head, vigilance, consistent focus, a strong understanding of trading strategies and a significant knowledge of how and why stocks move to make it work for you.
In this complete guide to day trading for beginners, we explain what the strategy is and how it works, along with examples of how to place a trade and examine the data that day traders use.
- Day trading involves entry and exit points on the same day
- Most day traders focus on price action trading, which often uses data based exclusively on price movement, rather than wider long-term factors
- A range of technical analysis tools can be used, enabling you to predict where a stock’s price might go next
- Profit is built through small short-term trades, which means less chance of a big win, but equally less chance of a big loss
- Successful day traders need the ability to move quickly, but not panic, and remain disciplined enough to stick to their own rules