Day trading platform in New Zealand
Currently, there are a huge number of different trading strategies for the international financial markets. All of them can be grouped according to various criteria, but the main one is the duration of the trade. Based on this feature, there are three types of trading short-term, medium-term and long-term. There are no special requirements for choosing a specific timeframe. But the success of your trading may depend on your choice. For example, day trading is not suitable for everyone a type of short-term trading in which all trades are opened on the same day. This requires a special approach, the personal qualities of a trader, and the choice of a trading platform for day trading is also very important.
The statistics of the largest stock exchanges say that the most popular type of trading is day trading more than 75% of traders perform operations with stocks, the duration of which does not exceed one trading day. Despite the fact that the largest financial corporations and hedge funds acquire assets for their own purposes for periods ranging from several months to tens of years, it is precisely one-day speculations that make up about 60% of the total exchange turnover of securities.
The topic of our today's review is day trading in New Zealand.
Below we will take a closer look at what day trading is, who is it for, and which trading platform in New Zealand to choose.
What is day trading?
Day trading is the name given to exchange transactions, that is, the purchases and sales of value that occur throughout the day (as opposed to normal trading). These are positions that are opened or bought and then closed or sold in just a few hours, minutes or even seconds.
Some traders prefer to trade for just a few seconds, while others prefer to trade for several hours. Day trading adapts to the wishes of the trader. The trader always depends on the market situation. If there is no movement you cannot make a successful trade. High volatility (movement) of the market is a friend of the day trader.
Day trading can be compared to normal work, but here you are paid at the market according to your own performance. The profit is realized through the price formation of the markets.
Intraday trading is most responsive to all market changes. The emergence of any significant news, statistics or other information can be used immediately. This strategy allows you to save time and make a profit as soon as possible.
Day traders exclusively trade derivatives or large stock positions. Derivatives are leveraged trading positions with the underlying asset (market). For this, various financial products can be used. In most cases, we are talking about either CFDs (Contracts for Difference) or futures contracts (futures contracts). CFDs are the most popular because CFDs can be traded with very little initial capital and give quick access to all markets.
Day Trading Markets
Assets with high trading volume and volatility are popular. Especially economic news is interesting for day traders to make quick profits. Popular markets for day traders:
- Forex (currencies);
- Commodities (oil, wheat and more);
- Metals (gold, silver and more);
- ETFs (exchange traded funds);
- Government bonds;
Day Forex Trading (Currency Trading)
The foreign exchange market is the most liquid and volatile market in the world and therefore offers good opportunities for day trading. The large volume of foreign exchange trading makes it attractive to day traders. Choose a trading platform that provides access to trade popular currency pairs. There is no central market in the foreign exchange market. This means that traders can trade six days a week and 24 hours a day. They are a great starting point for full-time novice or novice traders. When trading throughout the day, it is very important to know the individual characteristics of the currency you are trading. For example, the GBP USD rate is more volatile in the first half of the European session than any other liquid currency pair. In this regard, it is quite logical to take advantage of the fluctuations in the GBP USD rate instead of trading any other currency pair that does not show any movement. The USD CAD pair is behaving relatively calmly in the first part of the European session, but begins to make more significant movements in the American session. Also, before the release of important economic data, most, if not all, currency pairs are holding in a very narrow price range. Therefore, it is entirely reasonable to trade the breakout of these ranges at the time of the data release.
Day trading Forex can be very profitable.
Day Trading Stocks
Intraday stock trading offers different options than the traditional buy and sell strategy. By speculating on stock prices through CFDs or spread rates, for example, traders can also benefit from falling prices.
Intraday trading in stocks is very popular among beginners, here you can have a small deposit, which means that the risks of losses are much lower.
Cryptocurrency Day Trading
Digital currency is another area of growing interest for day traders. The two most popular cryptocurrencies currently are Bitcoin and Ethereum. Day trading Bitcoin, LiteCoin, Ethereum and other cryptocurrencies is a growing business. Many believe that this is the currency of the future. The impressive rise in the value of cryptocurrencies has led to these digital funds attracting many new investors.With high volatility, potential returns that are attractive, and an unpredictable future, day trading with cryptocurrencies can be a good choice for the day trader.
Thanks to convenient trading platforms, the cryptocurrency market has become available to retail clients.
Day trading stock indices
The Dax, S P500, Dow Jones and others are very popular with traders almost all day long. Because there is a lot of volume and sometimes high volatility, these markets are very suitable for day-to-day trading. The indices reflect the economic development of the country. They can be traded through options, futures or CFDs. CFDs (Contract Difference) are the most popular as you can work with small positions and leverage. Before using, you must understand how CFDs work.
Day Futures Trading
When it comes to intraday trading specifically, the futures markets offer several significant advantages over trading individual stocks.
Since futures trading is based on margin or leveraged capital, you can trade throughout the day with significantly lower account balances. Margin can be thought of as an initial payment on the full value of a futures contract.
The intraday futures margin is determined by brokers and clearing FCMs, while the overnight futures margin is determined by the exchange. If you meet the margin requirements, you can trade as many long or short positions as you want. Futures are available for almost all markets.
Day Trading Commodities
Oil and gas, food, metals and minerals are traded in options, futures or CFDs. When combined, these markets often have high volume. If you are attracted to trading in this direction, look for a broker who will provide access to the commodity market.
Regardless of which market you choose for day trading, you should be aware of the individual characteristics of the market in which you are trading. Each market has its own characteristics and it is important to know them before trying to profit from it.
A trader who opens and closes his trading positions on the same day without carrying it over to the next day is a day trader. Day trading involves a high degree of focus, so this type of trading is suitable for stress-resistant traders. Here it is important to be able to concentrate and track short-term, minute transactions. If you are constantly distracted and unable to concentrate on the current process, this type of trading will not work for you. Also, day trading is trading at an extremely fast pace. You will need to make decisions every minute, not paying attention to possible short-term setbacks.
It is very important to take losses as a natural part of trading. Learning from losses means developing a trading strategy. It is easy to make mistakes, and if you don't pay attention to risk management and are inconsistent in your decisions, losses will increase.
It is completely wrong to start day trading with the aim of hitting a big jackpot. The positive returns of successful day traders come from many small wins and many losses, but the losses are smaller compared to the winnings. The money you don’t lose is as valuable as the money you make. Therefore, you must ensure that losses are small and controlled.
The day trader, like no other, should be well versed in technical and fundamental analysis.
Day Trading Platform
Little by little, we got to the question about the trading platform. Since the trader carries out all operations through the online trading platform, there must be special requirements.
What is an online trading platform?
An online trading platform is software provided to you by your broker to enable you to trade online. All the necessary information, access to the trading floor, financial markets and trading instruments everything is collected on the online trading platform.
What should be an online day trading platform?
Start by choosing the right broker. Now it is easy to find out all the information about the broker through the official information sites. Use them to find out if the broker is licensed to conduct brokerage activities, as well as his business reputation and experience in the brokerage market. Study the reviews of experienced traders on various thematic forums practical experience is always better than colorful promising advertising. Ask for personal opinion from market experts, if possible.
The modern brokerage market in New Zealand is overflowing with offers, so you can easily choose several that meet the above requirements. Now is the time to opt for one broker, the one that offers the most convenient day trading platform.
If you have chosen the market you want to trade in, you need to make sure that the given trading platform provides access to it. Ask what the processing speed of applications is, methods of depositing and withdrawing funds, whether there is a demo account and tools for trading (stop orders), indicators for technical analysis.
We have chosen the best, in our opinion, day trading platform in New Zealand and highlighted the main points that are important for a trader.
Since trading in itself is already an energy-intensive process, the registration process should be easy and simple so as not to distract from the main purpose. Therefore, we have chosen a trading platform, registration on which takes a maximum of 2 minutes. To do this, you need to go to the broker's website, click the "register" button, fill in the form that opens and click the "register" option. At startup, the system asks for minimal data such as username and email. Confirm the registration through the automatic link that the system will send you to the specified mail and your account is ready. Later, when you withdraw funds from your account, you will have to go through additional verification in order to ensure the safety of your funds.
After registration, you will have access to two accounts, a real one and a demo one. The demo account was created for educational purposes. By exactly copying a real account, a demo account makes it easy to study the operation of the platform in practice, as well as test trading strategies and choose your own. To do this, the system credits an amount of 10,000 to the demo account you can use this amount without fear, since this is test fictitious money that will not have to be returned. Feel free to carry out various operations, analyzing your actions and the results obtained. The test amount can be replenished, and the use of the demo account is not limited in time.
Account replenishment and withdrawal of money
Funding a live account for live trading is as simple as registering. It is enough to select the “top up the deposit” option on the platform and choose the method of account top up from the list that appears. This can be done using a bank card or any convenient payment system (Webmoney, AdvCash, Skrill, Perfect money, Neteller). Funds are credited instantly to your account, the minimum deposit amount is $10. In the same way, you can also withdraw your funds using the same systems or to a card. The minimum withdrawal amount is $2.
The primary task of the day trader is to catch the intraday swings. All trades with this approach are concluded and closed on the same day. The entire focus of the intraday trader is directed only to the day when the trade takes place, he does not care what happens in the market tomorrow or the day after tomorrow, so he should focus on the appropriate time period. In my opinion, intraday trading should be done on 1-, 5- or 10-minute charts. Remember, the day trader hopes to capture several quick moves throughout the day and therefore should focus on the charts that best illustrate the development of the situation as it happens in a short period of time. However, many day traders keep track of the hourly chart to get an idea of how the market has behaved in the past week. Is it moving sideways (and therefore should only place trades between support and resistance areas)? Is it developing a trend (and should you consider transactions only in the direction of a trend on a larger time scale)? Is there any major support and or resistance level to consider (areas where one should refrain from entering trades as it is unclear how the market will behave once these are reached)? Has the market exited the congestion area?
Based on this, a very important point when choosing a trading platform is the ability to select different time intervals for analysis.
The trading platform we have chosen allows you to choose a chart range from minutes to several years, which is undoubtedly a great advantage. Moreover, you have the opportunity to open several windows at once with different time intervals on one trading screen for comparison.
Availability of indicators for technical analysis
Traders mainly use technical analysis to predict short-term market movements. Technical analysis includes the analysis of market price patterns. When a day trader sees a clear pattern, it means that price is more likely to go one way than the other. Many patterns can be used by day traders as well as by those who base their trading on longer time frames.
To enable quick and high-quality technical analysis, the platform has a tab “technical analysis indicators”, which includes the latter's charts and gives a visual picture for analysis. Indicator charts are automatically superimposed on top of the quotes chart and this is very convenient. One, two or more indicators can be used at the same time.
Availability of stop orders
Day trading carries risks. To protect yourself a little from losses, stop orders are used, such as stop loss and take profit.
Stop Loss is a pending order that limits losses. This order is placed to strictly limit your losses to a pre-calculated amount that you are willing to accept as a loss. It is the stop loss that allows you to exit the market before it is too late, while the loss is still small and has not destroyed your deposit. Set the required amount and trading will automatically stop when this figure is reached.
Take profit is a pending order that fixes profit. By setting TP, we decide where our "target level" will be and if the price reaches this level, we want to exit the market and take our profits.
Using stop losses is an effective way to limit losses on a position in a security. The stop loss can be placed above the current high for short positions or below the current low for long positions.
Other platform advantages
In addition to the above advantages of the trading platform we have chosen, it is also worth taking into account the size of the commission, the availability of a mobile version for quick access from anywhere to your operations, the presence of feedback in almost 20 languages, the presence of a chat for live communication with other traders, the presence of an educational section and a news feed. The platform has very flexible personal settings, with the help of which you can easily configure notifications, display of charts, working trading floor, and so on.
Sign up today and experience all the advantages of the day trading platform first-hand!