Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Day trading is a short-term investment strategy which involves buying and selling financial instruments within the same trading day. Day traders close out all positions before the market closes, meaning no position is held overnight. This is to mitigate overnight risk and avoid any negative price gaps. Day traders aim to profit from rapid price fluctuations, rather than long-term market movements, and day trading most commonly occurs in the forex, commodities, futures, and stock markets.
Day trading tends to differ from traditional investing techniques such as buying low and selling high, and traders employ various methods such as technical analysis to spot opportunities in the markets. Traders must also keep up to date with any breaking news or current events that may cause the market to shift.
Day traders can use a variety of intraday strategies. Some popular ones include:
Scalping: This strategy aims to generate profit from small price changes in the market. Positions often last only minutes or seconds, and traders can make a few hundred trades in a day. Traders must have an exit strategy to mitigate potential losses.
Trend following: This strategy focuses on following trends in the market. Traders will buy an asset when the price rises, and vice versa.
Price action: This strategy involves the study of charts with technical indicators to spot patterns. Traders use it to predict the direction of an asset’s price.
Range trading: This strategy involves identifying the support and resistance levels of instrument prices, which influence traders’ buy and sell decisions.
With technology and trading becoming more accessible, day traders now can work from anywhere, anytime. The only thing they need is an electronic device with Internet access.
Traders can also trade on margin when day trading certain products. This means they can magnify their trading positions and their exposure to the market with a smaller deposit at the outset.
As day traders close out all their positions before the end of each market day, they do not need to face overnight risks like with most traditional trading strategies. Overnight risks can include unexpected earning reports or events, which may move the price of an asset.
The nature of day trading requires traders to make fast decisions with precision, and they must remain aware of current events to stay ahead in the market. This style of trading may not be suitable for all traders.
Day trading can also potentially be costly. This is due to the various commissions and transaction fees that may be required when buying and selling a financial instrument.
ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
