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
CFD trading is no different from traditional trading in terms of strategy – you can go long or short
Here’s how it works:
Assume you’ve invested in Bitcoin. It’s a long-term investment, and you believe it will go up in value. But you are a bit nervous about the falling prices of other cryptocurrencies.
To hedge your primary investment, you go short using CFDs on Ripple, Ethereum, and Monero. Thus, you protect yourself against the possible crash of the crypto market.
Tip 5. Diversify and spread risks
Good diversification is the corner stone of a strong investment portfolio. There is an old investment rule of thumb: a well-diversified trading portfolio should be composed of 30 different assets, whereas a portfolio with 16 different assets makes for a 90% diversification.
Capital.com makes it possible to diversify your investment portfolio through an array of markets, including cryptocurrencies, stocks, commodities, indices and Forex.
If you are committed to share trading, make sure you diversify by size and by region. In simple terms, pay attention to both domestic and foreign companies that differ in the scope of their businesses.
Don’t forget to diversify by sector as well. If you are trading CFDs on various companies from different countries that all represent the energy sector, your portfolio is ill-diversified. Capital.com suggests a wide list of companies from all industries – IT, Healthcare, Foods, etc.
Also, the app features handy filters to make your choice easier:
- Top Tech Companies
- Biggest Energy Companies
- Largest Pharmaceuticals
Tip 6. Specify your leverage
CFDs are considered leveraged financial products as are most other derivatives. Leverage is a type of investment model that means an investor puts up only a small proportion of the total value of his desired position. The rest of the money is borrowed from a broker.
Let's say you want to buy a house that costs $100,000. You only have $20,000 in your bank account. You ask a bank to provide you the rest of the sum, which is $80,000. This is 1:5 leverage.
Capital.com provides leverage of up to 1:200. Assume you deposited $10,000 on your trading account. The leverage provided is 1:50 – you can trade investments that are up to $500,000. The margin requirement is 2% ($10,000). This is the minimum amount of money you have to have on your account.
Don't chase after a high level of leverage. Margin trading increases both the chances of possible returns and possible losses. Capital.com does its best to provide traders with an adequate level of leverage and put them on the right track.
At Capital.com, the maximum leverage level for CFDs depends on the underlying asset type: it is 1:200 for Forex pairs, indices and commodities, while shares can be traded at the 1:20 leverage only.
When an investor is opening a position, he or she is offered three leverage options: recommended, most popular and for professionals.
The negative balance protection feature is aimed at providing an extra layer of safety. It ensures your funds won’t drop below zero and you won’t lose more than you invested.
Tip 7. Benefit from SmartFeed
The Capital.com app offers an SmartFeed powered by artificial intelligence (AI) designed to give users personalised content. The smart mechanism tracks your in-app behaviour, analyses your investment decisions and detects common trading biases - if there are any. Once a bias is identified, your feed starts to offer you unique articles and related material to make your biases serve you, not confuse you.
Capital.com is capable of identifying at least 50 of the most common trading mental traps. The whole concept is rooted in the science of economic behaviour.
Italian researchers believe that a specific trading pattern can be largely improved and refined if a trader is constantly reminded of their biases.
Tip 8. Educate yourself
The Capital.com website can serve you well by improving your knowledge of finance. You can benefit a lot from the educational section. It features two major pages with courses and a handy financial glossary.
Online courses on stock trading are available for free. Each course includes up to eight lessons, covers one big topic and suggests taking a quick quiz in the end. Lessons come with box-outs and examples to illustrate the concepts.
The section features an extensive store of financial terms. All words are explained in simple language, with the most complicated concepts accompanied by short educational videos.
Tip 9. Invest with confidence
Capital.com keeps a keen focus on safety and user support.
- Withdrawals are possible within 24 hours
- Clients’ money is kept across segregated bank accounts, separately from the company’s funds
- Touch ID
- Negative balance protection
Tip 10. Discover the benefits of one tap trading
The Capital.com app saves you time and allows you to trade fast. It takes a few taps to choose an instrument, open a position and start trading.
Here is a step-by-step guide:
- Download the Capital.com app
- Start an account and make the first deposit in GBP (£), EUR (€), USD ($) or PLN (zł)
- Choose a CFD instrument you want to trade
- Set Stop Loss and Take Profit orders, if you want to add extra protection
- Go long or short
- Follow the handy charts to see how your trade performs
Bear in mind that trading always involves risks and you may lose all of your invested capital.