Day trading strategies - start trading at nextmarkets

Last updated: 23.01.2020
Dominic Hawker
Author:
Dominic Hawker
Adviser
CFD & Trading
Experience
> 30 years

Day trading is the perfect way to invest if you’d like to witness short-term gains for relatively low risk. Backed by the right day trading strategies, it’s possible to enjoy returns of 20 per cent or more.

With nextmarkets, you can enjoy free access to professional day trading strategies 24/7 from an intuitive app that puts your very own broker at your fingertips.

Find out why nextmarkets is the UK’s #1 trading platform today.

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The best day trading strategies

If you’ve been reading up on the basics of day trading, you might think it’s about time to open up an online day trading account to start investing. However, don’t be tempted to jump the gun – the most important strategy in these circumstances is not to rush things.

You should treat your nextmarkets day trading account as a business – constantly striving to improve as you earn a steady return on your investment. The markets can be volatile and are often unpredictable, which is why it’s important to have access to the latest day trading strategies from the best broker UK.

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Day trading tips with nextmarkets

While some trading platforms offer an easy way to get involved with the markets, we like to do things differently at nextmarkets. We’re here to help you improve upon your initial investment at no extra cost, which is why we offer day trading tips from professional traders, expert advice and access to all the latest insights – all from one intuitive, easy-to-use app.

In addition to this, you’ll even receive free virtual currency to practice with. This helps develop your online broker strategy before risking any capital. With all the advice you need, and opportunities to learn from the experts, it makes sense to choose nextmarkets as your day trading platform.

Best day trading strategy

There’s no hard-and-fast rule as to the best day trading strategy to employ. Tactics vary depending on the conditions of the market, although it is a good technique to constantly ensure you have access to the latest analytics and insight. A trading app that provides you with tailored investment opportunities in real-time via push notifications will put you at an advantage. This means you’ll be able to act quickly to take advantage of changes in the market.

Perhaps the best day trading technique for newcomers is to open a trading demo account with nextmarkets known for providing a high level of advice and support.

With a demo account, you’ll be able to perfect your day trading strategies without risking any of your investment. When you’re confident enough to invest after learning the ropes, the option is always there to trade with real funds.

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Day trading UK strategies that work

Whether you’re investing in shares, stocks or playing the CFD markets, you’ll be expected to make multiple decisions every day. The following day trading UK strategies are commonly employed by the nextmarkets experts:

  • Swing trading – this is when a trader tries to benefit from “swings” or reversals within market trends (such as when a rising price takes a slight dip during the day). See also: What is swing trading? & swing trading strategies
  • Hedging – this is a protective strategy which involves taking an opposing position against your original open position to prevent it from losing any tangible value (More information here: Hedging strategies). It’s where the term “hedging your bets” comes from.
  • Long v short – when you purchase an asset, it’s known as a long position (on the assumption it will gain value over a length of time). Shorting involves selling back an asset at a low level, with the intention of repurchasing it later on.

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To find out how nextmarkets could work for you, simply download the app for iPhone or Android. With a free demo account, you’ll get access to all the insights available to real traders. Here are just a few reasons why you should open an account:

  • Simple interface allows you to trade from anywhere
  • Dedicated advice and support from professional traders
  • Up to 100 curated monthly investments tailored to you – for free
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Understanding risk management

A simple day trading strategy is to understand the level of risk involved in investing. Once you’ve opened a day trading account with nextmarkets and gained an understanding of the markets with virtual demo currency, you might feel ready to invest with real funds.

However, it’s important to implement risk management in your investment technique. One way to do this is to adopt a rule of “one per cent” – this involves never investing more than 1% of your existing funds on a single trade.

This cushions your account against losing out if the markets don’t go how you expected. The occasional loss is part and parcel when it comes to day trading, so never risk more than you can actually afford to.

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Auto analysis in day trading

It’s important to take advantage of technical analysis if you intend to succeed as a day trader. With automatic analysis, you’ll be able to predict how the markets could be impacted by looking at historical data. If you use a day trading app with the capability to analyse historical data, this is a good start. By combining this data with common sense and current trends, you should be able to enjoy day trading success.

The nextmarkets trading app provides insights in the form of graphs, charts, curated investments and more. Never settle for a platform that isn’t able to provide this.

Professional day trading strategies revealed

When learning the ropes, newcomers are advised to keep their trading strategies as basic as possible. Taking risks without understanding the markets can lead to unprecedented losses, which is why it makes sense to use dedicated day trading software by nextmarkets that offers advice and tips. Some of the trading strategies favoured by the professionals include:

  • Moving average crossover – compiling historic price data with recent movements to spot potential trends. By overlaying these data, it’s possible to spot evidence of a movement.
  • Breakout – keeping an eye on the signals that suggest a new trend (be it upwards or downwards) is on the way.
  • Carry trading – using the interest received on bonds to cover the costs of another loan or day trade.
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Working day trading strategies

The day trading strategies that work are ultimately the ones that maximise profits and minimise risks. Professional traders put a lot of work in to ensure healthy returns. Cashing in too early or clinging to losing trades are two mistakes most often made by day trading for beginners. The following nextmarkets day trading tips should always be implemented where possible:

  • Choose logic over emotion: while you might get a gut feeling about a trade, always rely on analysis.
  • Limit your daily trades: investing huge amounts of your total funds is a bad idea – don’t gamble, be smart and understand the principles of day trading.
  • Don’t add to losing trades: if prices have taken a large and unexpected dip, don’t expect them to turn around immediately during the course of the day.

By sticking to these tips, you should protect yourself against large losses.

Flexible day trading deposits

Flexibility is important when it comes to accessing your funds, as well as depositing. Because day-trading largely offers short-term gains, it makes sense to choose a trading platform that allows you to deposit quickly to get involved when the potential returns are big.

In addition to offering deposits, a good day trading app should also offer support to newcomers. If you’re looking for the answers to questions like “what is day trading?” or “what are stocks?”, the nextmarkets  app will help you get up to speed with how day trading works before you invest with your own funds.

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Finding the best day trading techniques

The best day trading techniques will vary depending on your investment style, and how the market conditions are currently playing out. While there are no definitive rules to making money from day trading, it helps to have access to all the latest analytics and insights.

An online broker app that provides you with tailored investment opportunities will put you at a great advantage. This means that you’ll be able to receive all the latest curated potential investments via push notifications, allowing you to act fast.

Before downloading the first app you find, do a little bit of research to find out which platforms offer this sort of service for free.

Day trading for beginners: Choosing the right platform

Day trading for beginners can be daunting – but it doesn’t have to be. Choosing a platform that offers the right level of support and advice is crucial, and new traders are advised to follow the trades of the professionals. Beginners should always heed the following advice until they’re comfortable with their own strategy:

  • Limit your trades: stick to three trades per day, and don’t “jump the gun”.
  • Monitor the markets: dedicate some time to follow what’s happening. You’ll gain a greater insight if you put more hours in.
  • Stick to low-risk investments: don’t place all your eggs in one risky basket.
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Did you know?

At nextmarkets, we put our customers first. We don’t charge commission, and we only offer competitive spreads. You can also trust us with your investment – it’s why we guarantee the following:

  • Deposit and withdrawal flexibility – trade the way you want to
  • Financial backing from the largest names in the industry
  • Investor Protection Scheme of up to EUR 20,000

Want to know more? Simply get in touch with the nextmarkets team today. Alternatively, download the app and find out for yourself why we’re the UK’s number one.

Successful day trading strategies: swing trading

The most successful day trading strategies are inevitably those that minimise risk. While it’s perfectly fine to diversify from standard strategies every now and then, most newcomers will find complex techniques overwhelming and confusing. Swing trading (What is Swing Trading?) is one of the simplest and most successful strategies, as it focuses on a single market. Swing traders mostly avoid false signals as analysis methods usually help to expose these signals.

Stick to statistics, forget about emotion and enjoy a healthy return on investment with swing trading before getting into more complex trading techniques at nextmarkets. Don’t rush things – you have all the time in the world to learn.

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Understanding day trading futures strategies

Futures trading involves the agreement to purchase or sell a specified stock or share on a future date. To succeed on the futures market, the trader should try to hit “support” and “resistance” areas. All good trading platforms offer analytics software that should be able to automatically plot these areas.

At nextmarkets, all professional traders agree that simplicity is key when it comes to day trading futures strategies – stay disciplined and stick to your plan. With the day trading futures strategies that work, you have to be willing to lose regularly while ensuring that your win ratio is greater than 50%. With the right tools, this is easily achievable.

Accessing the best day trading strategies

If you’d like to access the best day trading strategies for beginners, you’re going to need to do some research to find out which tools offer the best level of analysis. Thankfully, there are a lot of recommended platforms which provide powerful analytics direct to your smartphone. Perhaps the best strategy is to follow the trades of the professionals at first, via a nextmarkets app that offers real-time advice via push notifications.

Of course, you’ll also want to dedicate some time to following the markets – but receiving advice on when to invest at the most crucial times is a great way to start.

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Day trading options strategies explained

Day trading options strategies are considered by some to be tricky and complex, but that doesn’t mean you can’t enjoy returns with the right techniques. Options come in two main classes – “put” options, which allow the trader to sell stock at a specified price, and “call” options – where the trader can purchase stock at a specified price. Not all options are suitable for day trading, although stock options, index options, options on futures and ETF options are all workable for day traders.

Options strategies are generally low-risk and low-cost, and allow traders to enter and exit positions quickly. It’s cheaper to buy options than it is to outright purchase underlying assets, so this strategy allows the trader to control more shares with less capital.

Combining different types of analysis

Professional day traders typically combine fundamental analysis with technical analysis. This makes perfect sense, as two methods of scouring the markets are better than one. Generally, traders use fundamental analysis to trigger trades while relying on technical analysis to predict the optimum time to enter a particular trade. With nextmarkets, understanding the fundamentals of analysis is made easy via video tutorials, chat monologues and more.

Everybody learns differently – at nextmarkets we understand this, which is why we strive to make learning about investment as interesting as possible, using interactive content and visual cues to demonstrate the best trading techniques. This helps you to retain information easier.

Trade successfully with nextmarkets

Whether you’re a newcomer to day trading or you would simply like to improve your existing day trading strategies, there’s never been a better time to get involved with nextmarkets: the UK’s newest and most powerful trading platform. Enjoy curated investment opportunities, help, advice and analytics all from one simple, powerful app.

You’ll find nextmarkets for free in the App Store (iPhone) and Google Play Store (Android), or you can simply use the web client on your desktop computer. All you need to sign up is an email address – so why not try out nextmarkets today and find out why so many traders are turning to the platform?

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