One of the most commonly traded methods, particularly in Dubai, is day trading. Here are some of the essential details regarding day trading and how to get started.

What Is Day Trading?

Day trading is purchasing and selling investment instruments within one single trading day, with positions being closed out at the end of each day and new ones being opened the next. To profit from tiny market fluctuations, day traders purchase and sell various assets on the same day, or sometimes several times on the same day.

Intra-day trading is not for the casual trader since it demands time, attention, devotion, and a unique attitude. Making quick judgments and completing a high number of deals for a tiny profit each time is what day trading entails. It’s usually thought of as the polar opposite of typical investing methods, which aim to profit from price fluctuations over a longer period.

Trading Dubai: Best Markets For Day Trading

Day trading is frequently linked with markets having set closures, however, you may be a day trader and trade marketplaces that are available 24 hours a day (or almost 24 hours). Selecting a marketplace today trade ultimately boils down to what you’re interested in, how much money you have, and how much time you want to invest in trading.

Popular day trading markets include:

  • Shares
  • Indices
  • Cryptocurrencies
  • Forex

Things You Must Know Before You Start Day Trading

Before you begin day trading any market, there are a few things to keep in mind, as the practice might take a lot longer than a traditional buy and hold approach.

Because the focus of investment is on longer-term market volatility, everyday fluctuations have minimal influence on the overall picture. When day trading, however, the focus is on the elements that might influence intraday market behavior.

These include:


The ease with which and how fast positions may be entered and abandoned determines a market’s liquidity. Day traders require a lot of liquidity since they are likely to execute several deals during the day.


For day traders, the volatility of an item, or how quickly its price changes, is critical. If considerable volatility is predicted during the day, the swings might provide a plethora of short-term profit possibilities.

Trading Volume

The trade volume of an asset is the number of times it is purchased or sold in a particular period. A large trading volume indicates a lot of interest and can help you find good entry and exit positions.

Top Five Day Trading Strategies

Day trading isn’t a trading technique in and of itself; it’s merely a trading style that mandates that you don’t keep a trade open all night.

5 prominent day trading strategies include:

  • Trend trading
  • Swing trading
  • Scalping
  • Mean reversion
  • Money flows

Trading Dubai: How To Start Day Trading In Dubai

Decide How You Want To Day Trade

The first step toward becoming a day trader is to determine which commodity you want to trade. Day trading is popular with derivatives, such as CFDs, because you don’t have to own the appreciating value you’re trading. This means you may create and end positions considerably faster, as well as bet on whether a market is growing or dropping in price.

Make A Day Trading Strategy

Before you begin day trading, you should lay out exactly what you want to achieve and be realistic about the goals you set for yourself. If you anticipate making a lot of money right immediately, you may be disappointed because day trading can have a high learning curve.

It’s also crucial to think about how you’ll develop a system for entering and leaving the market, and whether you’ll use fundamental or technical research. Your day trades will most likely concentrate on macroeconomic data releases, business reports, and news stories if you want to focus on technical analysis. Technical analysis, on the other hand, would most primarily rely on chart patterns, historical data, and derivative instruments.

Understand How To Handle The Risk Of Day Trading

Developing a risk management strategy is an important part of being ready to trade. Traders can mitigate any possible losses by putting safeguards in place to prevent the worst-case situation. Stops and limits, as well as other risk management measures, are vital parts of each trader’s toolkit.

Open Your Initial Position And Keep An Eye On It

It’s time to open your first position after you’re comfortable with your trading strategy. You’ll probably want to open both long and short bets in a single trading day. If you believe a market will increase, you will choose to ‘buy the asset, but if you believe a market will fall, you would choose to ‘sell’ it.

Remember that as a day trader, you’ll likely be initiating and closing many transactions in the same day, so stay on top of any market events or breaking news that might affect the values of the markets you’re interested in. You may accomplish so by utilising our trading ideas and news.

The Bottom Line

We’ve put up a list of the most important things to know about day trading in Dubai to help you get started:

  • The practice of establishing and closing positions inside the same trading day is known as day trading.
  • Traders adopt this approach to reduce the danger of slippage and to save money on overnight funding.
  • Part-time traders typically utilize day trading since it needs a lot of time and commitment.
  • Stocks, indices, cryptocurrencies, and FX are all popular day trading markets.
  • Before you commence day trading, you should think about the market’s liquidity, volatility, and trading volume.
  • You can employ a variety of day trading methods, such as trend trading, scalping, swing trading, mean revision, and money flows.
  • Before you begin trading, you must first choose how you will trade, create a trading plan, develop a risk management approach, and open your initial position.