Day trading and mobile devices go well together. A smartphone with a trading app installed has all that it takes to keep a day trader in the loop.
Day trading on a smartphone with a trading app gives you 24/7 access to markets, allowing you to trade volatility faster and more easily than a web platform.
Capital.com gives you just that – the app provides access to the world markets in a matter of seconds. Additionally, it comes with a set of specific features to make your investing comfortable and user-friendly.
Below are 10 tradign tips to help you explore Capital.com and make the most of trading from your mobile device.
Tip 1. Trade the news
In other words, make use of the momentum. News trading is a shorting or buying an asset right after a big economic event has taken place. In terms of day trading, a trader should anticipate news - be aware beforehand of the important announcements.
Luckily, all major economic releases are scheduled, each of them has its predetermined day. A typical calendar for trading tycoons includes the following announcements:
- Non-farm payrolls
- Unemployment reports
- Inflation rate releases
- Interest rate decisions
- Trade balance reports
- GDP data releases
- Individual company results
These are what a day trader should be prepared for in the first place. Most hard-boiled traders refer to economic calendars that are published on trading websites and financial resources.
Dates of corporate earnings releases are a subject to scrutiny as well. The entire trading world holds its breath waiting for annual reports or new products announcements from the likes of Facebook, Google, Samsung, Shell, you name it.
This data can send share prices up or down. For example, Apple shares went down 0.90% the day after the iPhone X announcement.
Tip 2. Go short, go long
Capital.com allows its clients to apply all traditional trading strategies when trading on a smartphone, including going long and short on an asset.
The XYZ stocks are trading at $100/$101. Let's say you've conducted a bit of a preliminary research and found out that the XYZ annual report is just around the corner. You assume that the XYZ shares will go up. After a short consideration, you decide to go long on 100 XYZ shares and buy 100 CFDs at $101.
Indeed, as soon as the report is published the shares skyrocket to $120/$121. You sell the shares at $120, making you $19 a share profit.
$19 X 100 = $1,900
Your profit is $1,900.
But keep in mind that it's crucial to be on the right side of the price movement. Otherwise brace yourself for a loss.
You can go short too. You strongly believe that the XYZ shares that are trading at $500/$510 will sink drastically. You want to short them and sell 100 CFDs at $500.
In the course of the next hour, the prices goes down and reaches $400/$410. You were right. You buy the shares back at $410 and close your position, making $90 a share. Your profit is $9,000 ($90 X 100).
Tip 3. Set stop losses
Trading moguls know that rising takes more time than falling. If the market goes down, it usually happens fast, and traders should learn to deal with it.
Capital.com enables you to use stop losses to save your capital against the bearish market. In addition to serving as a defensive mechanism, stop losses help you avoid margin closeouts. All you need to do is to specify a price level.
Say you go long on Bitcoin at $13,000 and set a Stop Loss at $12,500 to cap potential losses. If the ask price reaches $12,500, your position will be closed automatically, selling as fast as possible.
However, the basic stop loss doesn’t protect against price slippage during the sell-off; a guaranteed stop order does, but for an extra fee.
The opposite feature is a Take Profit Order, used to close your position and profit, in case you are unavailable.
Tip 4. Use CFDs to hedge
A hedge is an investment designed to offset the risk of adverse price movements in another asset. It usually means taking the opposite position to your main asset but in a related asset or security, often a derivative.
If you are speculating that the price of your core asset will rise – you are going long – you take a contrary (short) position on your hedge to profit if the asset falls in price.
If you are speculating that your core asset will fall – you are going short – you take a hedge positon that profits if it rises. The hedge is designed to protect against market volatility.
With Capital.com you can hedge in any market we offer – shares, Forex, cryptocurrencies, indices or commodities. Contracts for difference work extremely well for hedging. Here’s why:
They are leveraged financial products, meaning you only have to invest a small fraction of the total value
Capital.com offers a lot of hedging opportunities thanks to a wide list of available markets