While rising debt levels and the return of 100% mortgages may be interpreted as portents for another global recession, neither of these are as concerning as the words of Wall Street trader Steve Eisman. Eisman, who shot to fame by short-selling supposedly A-rated mortgage securities after successfully forecasting the decline of America’s sub-prime housing market, has emerged as one of the most prominent day traders in the world and has recently predicted that Europe’s banks may be about to collapse and trigger a further period of sustained austerity.
An Introduction to Day Trading and the Importance of Knowledge
While we have yet to see whether or not the world is braced for another period of recession, we can be sure that Eisman will become a target for those who question the ethical merit of profiting from a financial crisis. This is often something that is levelled as short-sellers and day traders, whose remit is to speculate on a host of securities while opening and closing all positions within a 24-hour period.
Day traders like Eisman do not create or exacerbate market conditions, however, nor do they manipulate the market to achieve a profit. Instead, they analyse market trends and pre-empt future price movements, before moving swiftly and shorting their assets without the often overwhelming burden of ownership. This remains an immensely profitable trading method by successful practitioners, and one which relies on instinct, a deterministic mind-set and an underlying wealth of theoretical market knowledge.
The Key Resources for Learning About Day Trading
Make no mistake; knowledge is the most important weapon in a day trader’s armoury, from the basic principles of investment to the advanced strategies that can deliver returns. If you are new to day trading or the financial marketplace as a whole, it is therefore important to seek out independent websites that include information about various securities and markets, with this website offering one of the most in-depth and insightful options.
Sharp Trader has introductory and advanced information relating to forex, stock indices and commodity trading, while this is also delivered through various mediums. So in addition to expert blogs and written guides, there are also video tutorials that expose you to visual teaching aids and the techniques that will deliver the best results. This type of resource is also beneficial as it helps aspiring day traders to make the transition from student to novice investor, by partnering with online trading platforms that offer a practical outlet for their newly acquired knowledge.
From here, traders can open a demo account and apply their knowledge in a simulated, real-time environment, without ever being forced to risk their own cash. This helps to build the practical experience required to become a successful day trader, while offering an opportunity to hone existing skills and refine them to suit the demands of real-world trading.