What A Day Trader Requires To Work
There are five things that every day trader needs. Without them, a day trader can’t really function or make money for that matter. The five things that a day trader needs includes a broker, an internet connection, a computer, a trading platform, and an account with a broker.
Online Broker: An online broker is the equivalent of a traditional broker that comes with floor trading. Without an online broker, transactions between buyers and sellers are impossible. Unlike traditional brokers, online brokers play a less active role because decisions to push through or pull out financial tools from the market arent in their hands. Rather, these decisions are now in the hands of traders themselves. Online brokers are only intermediary, providing traders with trading platforms and maintaining their accounts.
The Online Broker The online broker is responsible in managing transactions between a buyer and a seller. Compared to floor trading though, brokers online are less active in this process. In floor trading, brokers are the ones making decisions in the process and traders are mere bystanders and investors. But in day trading brokers are less active and day traders are the ones responsible in making decisions that can earn them money.
Still, online brokers are very much needed because they are the providers of trading platforms and day traders cant possibly execute trades without them! Online brokers are also responsible for maintaining accounts which is to be used when buying or selling stocks. The role of a broker online is still invaluable to a day trader.
Account: Setting up an account with an online broker is really important because that is where a day trader keeps his investments. Of course, the amount available in an account should be sufficient. Online brokers usually require accounts to have a minimum of $5,000.
Computer: Even if a trader has a trading platform or an account, he can’t use it without a computer because trading platforms are installed in computers. Day traders who are comfortable with working at a home office can choose a desktop but those who want more flexibility on work space will have to get a laptop. No matter what type of computer a day trader chooses, what’s important is that its specs meet the standards provided by online brokers.
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