Day Trade
In and Out in the one day.
The share market’s volatility is one of the reasons why day trading the SPI 200 is increasing in popularity among a wide range of investors. Day trading the SPI 200 presents investors with dynamic trading opportunities without the risks associated with holding positions overnight and having the market open sharply against you in the morning. The high volatility suits day traders who like to trade the big up and down swings in the market. With day trading, investors know exactly where they stand at the end of each day. You are always in control of the situation because as your positions are closed at the end of the day, your investment is not held to ransom by overseas market action while you are sleeping. Win or lose, your result is known at or before the end of the day. Tomorrow is a world away for day traders. Risk can be managed using stop loss orders at no extra charge. Most stop losses are placed when positions are originally taken.
Effectively trade small market movements.
Most investors have market opinions relating to future market direction. Day trading offers you a fast and efficient means of trading based on those opinions. The low brokerage allows you to trade small market movements. For example, if you bought the index at 3210 and sold at 3230 you would have made $500 profit or 20 points (20 points x $25). If you were wrong, and the market fell 20 points and you sold at that level, you would have incurred a loss of the same; that is how it works. Every 1-index point is worth $25 dollars; therefore day trading offers trading opportunities on a second, minute or hourly basis.