Become a Day Trader Without Breaking the Bank

What if you had a job that allowed you to potentially make money from any location in the world, be your own boss and take advantage of opportunities to create earning potential? That may all be possible with day trading if you are willing to educate yourself and stick to a solid risk management strategy.

Day traders can have the potential to profit by speculating on short-term price movements in financial markets, opening and closing their transactions within a single trading session with the aim of generating quicker returns. However, make no mistake, day trading comes with downsides and significant risk of loss that cannot be ignored. If you are willing to accept the risks and challenges associated with the job, it can be a rewarding career for some, both financially and professionally, to pursue.

If you are interested in starting your day trading journey, it’s important to focus on developing a strategy, finding the right broker or exchange, and learning as much as you can about financial markets during your first few months. Education is imperative.

One of the most common misconceptions about day trading is that you always need a large amount of capital to get started.

While FINRA does require pattern day traders to maintain minimum equity of $25,000 at the beginning of each trading day, different types of trading opportunities which are not encompassed by this restriction may allow you to become a day trader without breaking the bank with upfront capital.

By using a binary options exchange like Nadex, you can pick an amount of capital that you are comfortable starting with and forgo the pattern day trading rule entirely. Nadex’s products are all fully collateralized and are currently regulated by the Commodity Futures Trading Commission, not the SEC or FINRA.

This option provides more flexibility for traders and puts less of your hard-earned money at risk while you are learning how to trade or are new to a platform or product type.

If you are thinking about how to start your day trading journey in a simple and straightforward way, binary options trading may be a good place to start.

That’s because day trading binary options with Nadex is easy to understand for many traders, as binary options allow you to speculate on the price movement of an underlying market resulting in 1 of 2 possible outcomes, if held until expiration.

You can choose to trade binary options derived from asset classes like stock market indices, gold, oil, the dollar and the euro, and you always know how much of your capital is at risk with each trade.

Nadex is offering a no minimum deposit promotion starting August 27, 2021, which means you can open an account and start practicing without a significant upfront financial commitment.

What’s also great about Nadex is that it offers plenty of educational resources in an effort to help newcomers improve the learning curve to becoming a day trader.

Traders can even take advantage of using a demo account with $10,000 in virtual funds to get more familiar with binary options and Nadex’s platform, and to continue learning and practicing their trading strategies.

Day trading can certainly be one of the most exciting careers out there, so make sure you check out Nadex if you are interested in getting started.
Disclaimer:

Trading on Nadex involves risk and may not be appropriate for all. Members risk losing their cost to enter any transaction, including fees. You should carefully consider whether trading on Nadex is appropriate for you in light of your investment experience and financial resources. Any trading decisions you make are solely your responsibility and at your own risk. Past performance is not necessarily indicative of future results. None of the material included herein is to be construed as a solicitation, recommendation or offer to buy or sell any financial instrument on Nadex or elsewhere. Nadex is subject to U.S. regulatory oversight by the CFTC.

The information contained above may have been prepared by independent third parties contracted by Nadex. Nadex accepts no responsibility for any use of this commentary or for any resulting consequences. No representations or warranties are given as to the accuracy or completeness of this information.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.