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I think you mean "NOT be holding stock".
MOst day traders have long term holdings too.
If successful - which daft people are not, you skim the top off the "pot" to use daily. It relieves the anxiety because you're using "winnings" which feels less like your own money. You do NEED to be methodical, use a method which works, and be rather detached. That takes knowledge, and confidence in what you're doing, which takes time in proving what you're doing, to build.
That's one good way, which works for some people. Many learn what's called "price action", and don't care what the stock is, and use that.
Many use "scalping" which is lots of small trades. You can be best off trading several times a minute. Trading "bots" sometimes trade several times a second. The cost of doing a trade can be as low as half a pip, which is 0.005% (no I do not mean half a percent) . That's one 20,000th the value of the stock.
About $10,000,000,000,000 is traded, every day, in forex.
It's not people buying forex to take on holiday. It's people making money out of money.
All you need is money, a method, and you get a load more. I wish someone would tell Rachel.
You probably heard of the Carry Trade, in the news a lot recently. That's where you borrow money in say Japan, at a low rate, and stick it in the USA market, or use it to trade forex. With "pro" accounts the leverage can be way higher. say 400:1. Remember you can see the order book, the number of buyers vs sellers, and those with bids/offers waiting at particular levels. You can also see the unfiltered amounts coming and going, and have your own program guiding you. The momentum doesn't flip instantly. At 400:1 it would be scary. I know an accountant who had one of those.
Tech stocks are up and down a lot, at the moment.
I'm not holding any of them now, only on a daily basis.
On a daily basis, if they go down, that's fine too, you just "go short".
Almost every day there's some news which pushes one or another of them up or down over the day. You can get daily live advice, free, from pro traders. That is a new thing. The affected one will move maybe a few %, quite often. You can use "leverage", which is very normally 5:1, where 2% becomes 10%.
10% a day is 60% a week, 17x in a month yada yada. You won't get that usually, but you can see, it's not much of a stretch to do well. I have bored y'all elsewhere - when I started, Bitcoin would move a few % in a day, related stocks would move say 10%, which leveraged is 50%, in a day.
You can avoid US tech altogether. I'm not saying there's NO linkage, but the Vanguard UK Ftse 100 fund is up 20%+ over the last year, and there's a leveraged one which is up about 50% , in the last year.
I'm at a time of life where I can't use any more money. Sounds daft, but so it is. I have no kids, wife died, etc. Even if I spend the rest of my life in a chintzy care home... I never thought that would actually happen, but there it is.
Just fink, if I had bin clevva..
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You don't need to be optimistic, just know the stats, and the facts for what happens if, for yourself. You don't appear to.
You can always say "what if the banks all get blown up", but that's a bit silly.
The brokers do not hold your shares, you own them, so you own a part of Tescos or Rolls Royce or whatever. Those companies do not evaporate.
Those are not related to the 85k now 120k(?), which is for the cash you have in your not-very-safe buiding society.
I've been quoting some % numbers, but not the highest numbers for the riskiest places.
You can put money in highly risky places. But neither you nor I are daft enough to put too much, there.
If the SM collapsed tomorrow - not all that unlikely, then I'd be very comfortable ta, with the parts which wouldn't lose any value, and I'd wait. Find instances where the dip was ever extended for long. Not many.
