Day Trading in Canada

In Canada, day trading incorporates a wide variety of equity exchanges. Generally speaking, day trading is for people who want to earn a living by making multiple trades for small profits that add up.

What tips do they use to sell and buy stocks? One involves day trading rebates. The Alternative Trading Systems platform brings traders together, offering rebates on transactions if you trade online. There are several systems, with which you can make money in this way. When using day trading rebates, one should purchase a large volume of stock, bypassing middlemen brokers, and post the bought shares on an ECN. When a buyer appears, the electronic communications network charges a fee and gives the trader a rebate. Keep in mind that it doesn’t matter whether the stock loses or gains in one day. Rather than that, the number of transactions you are able to make helps you take advantage of this strategy. It is best to use your access to the electronic communication network in as many time zones as possible as to maximize the day trading profit.

Another tip relates to tape reading. Tape reading means watching printed transactions or the ticker tape for a stock. Watching the sales and time of a stock can be very beneficial if you know what to watch out for. This type of trading is appropriate with high daily turnover of highly liquid stocks. The spread between the ask and the bid price is bound to be very tight.

So, how does the day trader "train his eye"? First, you should be able to predict price changes when the trade is fixed at a given price in the context of fast trading. If you spot trades in large volumes, that most likely indicates the presence of big investors or institutions on the market.

There are ways to benefit from the various day trading strategies. You need to learn which times of the day are the most reliable. For example, around lunch, it is slow and the trading can be dangerous. Another thing to watch for is the flow and speed of orders being issued. For example, numerous consecutive trades buying at the ask price may mean a slight price increase. Tools to make use of are index futures charts and level 2 quotes. The latter is where most of the requests for trade are posted. Investors can sell and buy without making their trading public by means of dark pools.

In Canada, Match Now is used for this purpose by Tri-Act. In terms of etrade tips, scalping is a favorite strategy of many Canadians. Scalping is a trick whereby you make pennies in profit per share, but the tiny profits add up. Shaving is similar to scalping; only you trade at fractions of pennies within the scope of the spread. The objective is to be the first to trade.

Always subscribe to live news feeds about trading. It is important to capture and profit on the initial reactions to any event, be it a price shift or abnormal volume activity.