Fundamentals

Market Fundamentals
Every professional day trader will tell you they have a good understanding of what drives markets. Where that expertise lies, though, may vary from one day trader to another. Some develop bias based on underlying economic fundamentals, like the direction of trade & capital flows or central bank policy.

Other professional traders say they have developed a sense for turning points in market sentiment, knowing precisely how to differentiate a true reversal from a fake-out. This characteristic can be summed up simply as market expertise. Traders who do not possess such qualities are often left guessing as market conditions shift, resulting in heavy losses.

Professional traders surveyed for this article suggest the best way newcomers to the market can develop the expertise needed to be a successful day trader is through practice. Demo accounts, mini accounts and e-minis all allow practice with small amounts of start-up capital.