What is Day Trading? Day Trading South Africa Guide for Beginners

Forex Trading SA » What is Day Trading? Day Trading South Africa Guide for Beginners

Day trading is characterized by taking positions and then reselling financial assets before the end of the session. Indeed, one should not keep one’s views from one day to the next when one is in a logic of day trading.

We limit losses, and we take quick wins to hope to have a positive balance at the end of the day. This speculative trading technique is only possible due to the new technologies, which make it possible to make round trips quickly on the financial markets.

Day trading forex is most often carried out in high volatility markets. The principle of Day trading is similar to scalping, which is a short duration, day trading, a few seconds or minutes. Day trading South Africa’s popularity is also increasing.

The Best Brokers for Day Trading in South Africa

The Best Brokers for Day Trading in South Africa

Trade with:
HYCM Markets
Min. Deposit: $100
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Forex, Margin & CFD are complex instruments and come with a high risk of losing money due to leverage.

Trade with:
Min. Deposit: R 1500
Best 2021 FX Broker
4.5 rating
T&Cs Apply
South African Customers Only

Forex, Margin & CFD are complex instruments and come with a high risk of losing money due to leverage.

The Basics of Day Trading

  1. Product Knowledge

What products can we work with? Stocks, Bonds, Turbos, Options, Futures, Forex, or CFDs – there is a wide choice. CFDs, Contracts for Difference or contracts for difference, are prevalent instruments, which allow you to trade different underlying instruments such as stocks, indices, or commodities. In the section ‘Trading with CFDs’, you will find a lot of information on this product. People from South Africa has excellent product knowledge. Thus, day trading South Africa is progressing in this forex trading.

  1. Risk Management And Money Management

Risk management and money management are crucial for trading. Your balance is your working capital; it is, therefore, first of all, necessary to protect it and then to make it grow. The trader must ask himself these essential questions: how much money can I risk on this trade? Where should I place my stop sign? What position size can I trade? This trader limits the risk by using a trailing stop. It is to add here that day trading South Africa often makes mistakes in risk and money management.

  1. Technical Analysis 

Technical analysis helps the trader to make his decisions: what is the current trend or the primary trend? Should we take a buy or sell position? Which indicators will give which signals? What graphs and chartist figures are there? In this area, you will find a lot of information, especially the description of indicators, chartist formations, and candlesticks.

  1. Develop A Trading Strategy 

A trader must always have one or more trading strategies or configurations in his arsenal. Put simply, and an approach includes an entry point and an exit point, as well as position size information. Here too, essential questions must be asked: what is a good strategy? Can I do a backtest? Is the backtest reliable? To which instruments can I apply this strategy? In this section, we offer known plans with their parameters and configurations. These can be used as a starting point to develop your own trading strategies.

  1. Using A Trading Platform

For your (day) trading learning, you will need an efficient trading platform. Many applications offer the possibility of carrying out your analysis as well as executing your orders directly on a platform. It is for this reason that the platform is your most important working tool. It is, therefore, important to learn about the functions and possibilities of the program and to test it to master it fully. Day trading in South Africa is very easy since there are many trading platforms in South Africa.

Day Trading South Africa

What Can Be Traded?

  • Stocks,
  • Bonds,
  • Turbos,
  • Cryptocurrencies,
  • Index Futures,
  • Forex or CFDs

Characteristics of a Day Trader

Day trading requires certain unique personality traits. Day trading forex should be treated as a serious business rather than a hobby. Those who are interested in being a day trader forex, you should have the following characteristics. People from South Africa, you should also try to develop these characteristics.


A day trader must be disciplined since the trader needs to perform the best at day time. A healthy and disciplined lifestyle is a prerequisite to be successful. Besides, discipline in planning is also necessary.


As a day trader, you need to focus for long periods. A day trader needs full concentration since he needs to read and analyze charts and graphs most of the time.


Unlike most careers, working more does not necessarily mean making more profits. Sometimes the hardest job is waiting, and it takes a lot of patience.


A day trader must curious to learn and know a better day trading strategy to draw better profit. The mind should be interested in discovering a new day trading strategy.

Strong Mentality

A steady mentality is very much necessary. Even following the best trading strategy, one may lose money. A constant attitude keeps to be stable and makes a better decision at the right moment. Again, if a trader wins tremendously and if he does not have a strong mentality, he may make mistakes in his next investment and face financial loss.

Software Knowledge

You are surely aware that the day trading strategy lies in the comprehensive analysis of the market. A good trader always studies the market analysis. There is much software available in the trading world. A good day trader possesses sound knowledge of how to use the software correctly.

Day Trading

Day Trading for a Living

Many have changed their fortune being day traders. It is possible that you can start day trading forex for a living. However, keep in mind, there are also possibilities to lose money. The current statistics show that many people left their job and started day trading forex for a living. Indeed, many are successful. You can be successful also in such trading. You need to follow a day trading strategy to draw better profit. However, day trading in South Africa is also possible since it is easy, and you can avail day trading forex platform around you.

Should You Start Day Trading?

It all depends on you. Remember, you can make a profit if you are aware and follow the day trading strategy correctly. So, you can be a day trader from whichever parts of the world you are. In almost every country, you will get day trader brokers to start trading. In South Africa, there are also many opportunities to start day trading.

Day Trading Strategies

The day trading strategy is the prerequisite to earn profits. However, always remember there is no end of learning strategies. You need to keep on learning when you start day trading forex. You can use the following day trading strategies:


It is necessary to follow the trends. It is indeed a widespread phenomenon that when the price starts to go up, day traders begin to purchase. On the other hand, the traders start selling short when the trends start to go down.

Investing Against Gain

This strategy assumes that price increases will reverse and fall. You buy when the trend is down or sell short during the rise, with a hope that the direction will change.

Using Scalping

This is a style where small price differences are exploited. This technique typically involves moving in and out of a position quickly, within minutes or even seconds.

Trade On The News

Investors using this strategy will buy when good news is announced or sell short when bad news is announced. This can lead to greater volatility, which can result in higher profits or losses. So, day trading South African people, you should also follow this strategy.

Day Trading Tips for Beginners

It is actually not very difficult to be a day trader. The forex market is very simple. Indeed you need the right strategies for day trading forex. Day trading in South Africa has more enormous potentiality. Here are the tips for the beginners:

  • The number one suggestion is to start with virtual money on a demo account. Here you will learn the forex market approach.
  • Choosing the right broker is very important. So select the best broker. You need to select such a broker who is nearer to you to avoid more expenses to visit there.
  • Study the brokers’ facilities well before selecting. Brokers offer many facilities and bonus. So check the facilities and the amount of the bonus.
  • Set up your mind that you may lose money. Take a better day trading strategy that is to say invest only that amount of money that you can afford to lose.
  • The minimum amount to practice day trading forex is not very important. Unlike the traditional stock market investment, you will use the leverage (on stocks or futures), which multiplies your financial possibilities. It is not uncommon for the day trader to be positioned on only one stock at a time with maximum leverage. Consequently, even a modest budget (a few thousand euros) may suffice. It will suffice just that the brokerage fees do not too much reduce your small percentages of gain.
  • Never take any reckless decision. Since the forex market offers a high level of leverage to the traders, never be tempted by the illusion of reckless speculation.
  • Learn well on how to analyze the charts so that you will understand the charts well.
  • Anyone can start trading currencies. However, as a trading online beginner, you should have the appetite and understanding of the risks and technical aspects.
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# 1 Guide to Forex Trading in South Africa
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