Day Trading Frequently Asked Questions
» How much profit can I make day trading?
» How long will it take me to learn how to day trade?
» Is my day trading capital guaranteed from loss?
» Should I quit my day job or business to day trade?
» Can I day trade if I live outside of the United States?
» Do I have to pay taxes in day trading?
» I heard that day trading currencies has more tax benefits than day trading stocks. Is this
true?
» Can I open a trading account from any country?
» How long should I do paper trading before day trading with real money?
» What is the minimum account you recommend to start day trading?
» Should I day trade with all my money?
» How much will it cost for me to learn day trading?
» Should I trade from home or from a trading room?
» Is day trading with a laptop better than with a desktop?
» Do I need more than one monitor?
» Do I need DSL or Cable Modem service?
» Can day trading be treated as a career?
» Is there a "best time of the day to day trade?"
» How much capital do I need to day trade?
» Should I paper trade on paper?
» What can a day trading software cost me?
» Is it a good idea use trading systems or daytrading entry/exit point generated by trading
systems/ websites?
» I have invested in stocks in the past. Will day trading be easier for me to learn?
» Should I pay thousands of dollars for a day trading course?
» How can I predict what prices are going to do while day trading?
» Can I day trade only a few hours a day?
» Why all the fuss about having a day trading strategy?
» Is day trading online safe?
» What is the best way to learn day trading?
» Is day trading for beginners?
» Where can I find a good day trading company?
» Should I use news to day trade?
Should I use news to day trade?
When important financial news is released, usually the prices of financial commodities (stocks, bonds, currencies, etc.) start fluctuating more than they normally do. This increase in volatility makes it more difficult to day trade - since prices move more chaotically and stops are taken out more easily. For that reason, it is usually better to avoid taking a position right before or during an important news or economic release. What you should try to avoid is the urge to buy or sell based on your interpretation of the news. Just because you think a specific news or event is positive for the price of a stock or currency, it doesn't mean that the price will go up. If the news is significant, the price will go up or down - it doesn't matter which way it goes. You can react to whatever direction it decides to head in.
Day trading is not about predicting price should go based on the news. Day trading is about REACTING to what the price eventually does. Traders that try to be smarter than the market by predicting eventually get eaten alive. Since nobody has a crystal ball, don't day trade based on news.
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