3 reasons to open a day trading account today

3 reasons to open a day trading account today

Author: Jelle Huisman

As an investor, you sometimes miss opportunities. Do you know the feeling of; had I only known then that…? For example, around 15 March 2020, you could have bought the Facebook share for around USD 146. At the beginning of December 2020, the Facebook share price fluctuated around 286 dollars. A great deal is happening in the world at the moment. These events affect supply and demand, which in turn affects the global financial markets. Anyone interested in what is happening in the world needs a trading account.

You have to shoot, otherwise you can’t score (Johan Cruijff)

Below are 3 important reasons to open an investment account or a day trading account today:

You can benefit directly from events that have an impact on the financial markets

When you have a trading account, you can immediately take a position in the share or financial value in which you expect a movement. There are various possibilities for this. For example, you can buy a certain share. You can also make use of so-called limit orders, in which you only buy or sell when the price has reached a certain level. In addition, it is always wise to use a stop-loss, which allows you to limit the maximum risk you run per transaction.

A good example of a company whose share price has risen enormously in 2020 is Zoom Video Communications, which is listed on the American NASDAQ. As you may know, Zoom offers software that allows you to chat, meet and collaborate online.

After the outbreak of the global corona crisis, more people started using Zoom’s services. Zoom’s share price quoted on 2 January 2020 was 35.88 dollars. On 19 October 2020 a price of no less than 587.12 dollars was reached. When investing in a share, or any other financial value that rises or falls sharply, it is always difficult to take advantage of the entire value development. In the case of Zoom, even if you had bought the share on 15 June, you could still have benefited from a doubling of its share price value. One of the conditions is, of course, that you have an investment account with which you can actually buy the share.

You decide for yourself which products and on which markets you trade

Online brokers today offer many different products, which can be traded on many markets. These are often: shares, options, turbos, ETFs, futures, CFDs (Contracts for Difference), bonds or forex. The most common markets to trade are: stock markets, foreign exchange markets, commodity markets and global indices such as the Dow Jones or the DAX30.

An investment account or day trading account gives you the opportunity to benefit directly from changes in the market in various ways. For example, if you had noticed that more and more people were using ways of communicating with each other online, you could have bought the Zoom share.

The ability to trade with leverage

Many traders and day traders trade in so-called leveraged products. By using the leverage effect, traders with small amounts of money can take large positions in the market. These positions can result in large profits or large losses per transaction.

A major advantage of leveraged products is the ability to speculate on falling prices (going short). Most leveraged products are particularly suitable for day trading. Day trading is fun, but take into account the risks involved. On the blog section of this website you’ll find various articles that can help you improve your knowledge of trading.

This is how to open an investment account or a day trading account

Opening an online investment account or day trading account can be done quickly and easily these days. Always make sure that you open an account with a good and reliable broker, who is well regulated and offers support in your own language. In the following article you will find 5 points to pay attention to when choosing a good broker.

If you mainly want to trade in shares at very low rates, take a look at DEGIRO. DEGIRO is known as an innovative reputable online broker with more than 600,000 clients spread over 19 countries. According to DEGIRO, DEGIRO is mentioned in 65 international surveys as the best and cheapest broker to buy and sell shares online.

Traders who wish to trade indices or forex are best advised to open an account with a broker who specialises in offering leveraged products. Two good, internationally renowned brokers are Admiral Markets and AvaTrade.

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