Some people love the chase and the non-stop action of the daily securities markets. Whether it’s stocks, options, futures, commodities, forex, or precious metals, there’s something about non-stop price movement that gets the adrenaline pumping for certain kinds of investors. Fortunately, there are many opportunities for those who want to be in the thick of things, making dozens of trades per session and always having a fresh one in view. If fast-paced buying and selling is your cup of tea, here is a short summary of four ways that you can get involved. The best part is that you won’t need to put a ton of money on the line, nor does it take months of intense study to learn how to use any of the techniques.
Precious Metals Scalping
Precious metals scalping is not for everyone, but those who like fast price action and the chance to make a daily income from speed-based transactions love nothing more. Unlike day trading, precious metals scalping only involves the four precious metals, gold, silver, platinum, and palladium. Additionally, the size of each trade tends to be larger than a standard day trade, and lasts for much less time.
Day Trading
Day traders make multiple round trips (a purchase and associated sale) per session and don’t hold positions overnight. That’s the basic definition of the strategy that many people engage in every day of the year. The good news is that learning how to day trade only takes a couple of weeks, and you can get started with a modest amount of capital as soon as you feel ready to go live. If you’re attracted to this kind of activity, remember to seek out a broker that is day trade friendly and offers plenty of educational resources to new account holders. Also, make sure that whoever you end up working with has a simulator available so you can practice quick order placement for a couple weeks before putting real money on the line.
Options
Stock options have long been a favorite among people who like to balance higher-risk investing with high potential rewards. Options contracts are complex instruments and there are unlimited mathematical strategies for setting up positions. However, sticking to simple vanilla options, contracts that give you the right to buy 100 shares of the underlying stock, can be the best way to get started in this fast-paced niche where prices often change rapidly.
Commodities Futures
Buying futures contracts on commodities is a favorite strategy for investors who like to take part in active markets. Prices change quickly on individuals’ commodities, which is why so many who follow this approach diversify their holdings among five or more assets at a time, like cotton, oil, copper, and wheat (just to name a few of the most frequently traded commodity’s futures). There are mini contracts for most of the major categories, so don’t expect to have to put thousands of dollars on the line to get started. Additionally, futures brokers usually offer high leverage to traders and the markets are very liquid.