Seventy-eight days into Donald Trump’s second term, global markets are already rattled by his aggressive trade stance. From day one, the US has imposed a wave of tariffs, triggering a fresh and unpredictable trade war.

The financial world is now grappling with sharp asset declines, unusual alliances among major economies like Japan, China, and South Korea, and a surge in market volatility.

Traders face one of the most uncertain environments in recent memory. So, how do you navigate this tariff-fuelled chaos?

In this guide, we’ll break down how Trump’s tariffs are reshaping trading strategies, explore potential recession risks, and examine whether assets like Bitcoin might rebound. Let’s dive into what traders should watch — and how they can stay ahead.

Is it a good time to short US stocks and bonds?

US stocks: Market conditions and risks

As of April 2025, US equities are under heavy pressure. The S&P 500 has dropped by 21.3%, while the Nasdaq Composite is down 25.6% — both firmly in bear market territory.

While these levels often indicate recession, there have been exceptions (e.g. 1962, 1987, 2022). Still, the spike in the VIX — Wall Street’s volatility index — is sounding alarm bells.

On 7 April, the VIX hit 60.13 and closed at 46.93 the next day — levels not seen since the 2008 and 2020 crashes. This signals extreme market fear, typically observed near bottoms.

Yet history shows that while VIX spikes above 50 can lead to short-term rebounds, they don’t always prevent deeper declines. In 2008 and 2020, markets kept falling even after fear peaked.

Should traders short stocks now?

There could still be room for further downside. If recession fears escalate or corporate earnings disappoint, markets may slip lower. However, much of the negativity appears to be priced in already.

For traders, timing is everything — it’s wise to watch for signs of economic stabilisation or shifts in policy before holding onto short positions too long.

US bonds: A changing narrative

The outlook for US Treasuries has shifted, with the 10-year yield falling to around 4.0% — its lowest since October 2024.

This drop reflects a classic “flight to safety” amid growing recession fears. The yield curve remains inverted, with short-term yields above long-term ones — a pattern that has reliably preceded past recessions.

Should traders short bonds?

Shorting bonds looks increasingly risky. With investors flocking to safe assets, bond prices are rising and yields could fall even more. Unless inflation unexpectedly surges, the environment now favours long bond positions.

The likelihood of additional Fed rate cuts and moderate inflation expectations further reduce the appeal of bond shorts. A cautious, defensive bond strategy appears more suitable for current conditions.

Will there be a recession?

The risk of a US recession continues to climb, with several leading indicators flashing warning signs.

Key recession indicators:

• _{Yield curve inversion: The 3-month Treasury yield has remained above the 10-year yield for months, with the gap widening to -50 basis points — a historically reliable recession signal.}
• _{Leading Economic Index (LEI): The LEI declined by 0.3% in January 2025, continuing a downward trajectory that suggests weakening economic momentum.}
• _{Unemployment: The US jobless rate has risen from 3.5% in 2023 to 4.1% — a significant increase that often precedes economic downturns.}

Investment banks are raising their recession probabilities: Goldman Sachs now sees a 45% chance, while J.P. Morgan puts it at 60%. If trade tensions escalate further, those odds could increase.

Conclusion on recession

Although the data points to higher recession risk, a soft landing remains possible. Traders should monitor economic releases closely as we move through Q2 2025. While a shallow recession may be on the horizon, successfully navigating it will require agility and close attention to market signals.

Will Bitcoin recover to USD 100k?

Bitcoin’s recent price performance

In April 2025, Bitcoin (BTC) opened near USD 85,227 but slipped 13% to a low of USD 74,496. It has since rebounded slightly, trading around USD 80,858.

These moves are occurring against a backdrop of broad market uncertainty, and Bitcoin continues to show a strong correlation with traditional indices like the S&P 500.

Fundamentals and sentiment

Despite recent volatility, Bitcoin futures open interest remains robust, suggesting institutional players are still active.

Meanwhile, the M2 money supply is expanding, and stablecoin market capitalisation is on the rise — both signs of increasing liquidity. A growing supply of stablecoins may provide support for crypto assets going forward.

However, Bitcoin is still subject to macroeconomic trends, such as global risk appetite and economic policy shifts. While short-term pressure remains, the medium-term outlook could improve if liquidity continues to grow and risk sentiment stabilises.

Conclusion on Bitcoin recovery

Bitcoin’s path back to USD 100k may not be straightforward, but it remains plausible. As liquidity increases and global markets adjust to the new economic regime, there could be room for recovery.

Traders should track macro factors such as inflation, rate policy, and market volatility to assess when bullish momentum may return.

Final thoughts: Navigating tariffs and market volatility

Trump’s tariffs have reignited a global trade war and sparked exceptional market turbulence. Whether you’re trading stocks, bonds, or Bitcoin, the key is staying agile and informed.

Shorting may still offer opportunities — especially if recession risks deepen — but the landscape demands caution. With economic signals shifting and sentiment fragile, traders must manage risk wisely and avoid overexposure.

At VT Markets, we equip you with the tools, analysis, and support to navigate volatile markets confidently. Stay informed, stay prepared, and trade smarter — even in uncertain times.

Ready to take control of your strategy? Open a live account with VT Markets today and unlock smarter trading in volatile times.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

How to Become a Day Trader: Your Guide to Starting Day Trading

In this article, we’ll cover everything you need to know about how to become a day trader, from building a strong knowledge base and understanding the markets to developing a trading plan and implementing effective risk management strategies. We’ll also explore the types of markets you can trade, popular strategies for day trading, and key tips to help you get started with confidence.

What is Day Trading?

Day trading is the practice of buying and selling financial instruments like stocks, currencies, or commodities within the same trading day. Unlike traditional investing, where traders hold positions for the long term, day trading aims to capitalize on short-term price movements. The goal is to make quick profits by executing multiple trades in a single day.

Day trading is especially popular in markets with high volatility, where traders can benefit from small price fluctuations. This practice has gained popularity due to the accessibility of online trading platforms and the potential for significant returns. However, it also comes with higher risks and requires a sharp understanding of the market and quick decision-making skills.

How to Become a Day Trader?

Becoming a day trader involves more than just opening a trading account. To succeed, it requires acquiring the right tools, building knowledge, and developing a well-thought-out strategy. Below are the steps you can follow to start your journey as a day trader.

1. Build Your Knowledge Base

A strong foundation in both technical and fundamental analysis is essential. Technical analysis involves studying price charts, patterns, and various indicators to predict future price movements. Fundamental analysis, on the other hand, includes monitoring economic news, financial reports, and global events that can impact market prices.

Educating yourself through books, online courses, and trading seminars can significantly boost your understanding. Many day traders also read trading blogs and participate in forums to learn from the experiences of others.

2. Understand the Markets

Before diving into day trading, it’s crucial to understand the markets you wish to trade in. This includes knowing the assets, such as stocks, forex, or commodities, and their price movements. Popular choices include the FTSE 100 index, major forex pairs like GBP/USD, and commodities like oil and gold. Each market has its own trading hours and level of volatility, which can greatly impact your strategy.

Understanding market conditions will help you better decide when to trade, which assets to focus on, and the types of movements that present profitable opportunities.

3. Develop a Trading Plan

A trading plan is crucial for guiding your decisions and maintaining discipline. It outlines your trading strategy, risk management rules, and goals. Your plan should include the assets you want to trade, your risk-to-reward ratio, and specific entry and exit strategies.

Your trading plan should also account for your daily routine and trading schedule, helping you avoid impulsive trades. Having a plan reduces emotional decision-making, which is one of the most common pitfalls in day trading.

4. Choose a Reliable Trading Platform

Selecting the right trading platform is one of the most important decisions you will make as a day trader. Look for a platform that provides fast execution times, real-time data, and a user-friendly interface.

In the UK, traders often choose platforms like VT Markets, which offer access to a wide range of markets, low latency, advanced charting tools, and responsive customer support. A reliable platform allows you to make quick decisions and execute trades without delay, which is crucial in the fast-paced world of day trading.

5. Fund Your Trading Account

Once you’ve chosen a platform, you’ll need to fund your trading account. Day trading can be done with a relatively small initial investment, but it’s essential to fund your account sufficiently to allow you to manage risk and execute your strategy effectively. Many brokers, including VT Markets, offer various funding options such as bank transfers, credit/debit cards, and e-wallets.

It’s recommended to start with a small amount and gradually increase your trading size as you gain experience. Avoid using more capital than you can afford to lose, especially when starting out.

6. Implement Risk Management Strategies

Day trading involves substantial risk, which is why risk management is critical. The use of stop-loss orders, position sizing, and the risk-to-reward ratio can help protect your capital and prevent significant losses.

Successful traders know when to cut their losses and preserve capital for the next trade. Setting a daily loss limit is another way to manage your risk and avoid emotional trading after losing streaks.

7. Monitor and Stay Informed

The key to successful day trading is staying informed. Keep up with the latest market news, economic data, and global events that could impact your trades. Many day traders follow financial news platforms like Bloomberg, Reuters, and TradingView for real-time updates.

Staying informed and adapting your strategies to market conditions will help you make better, more informed decisions, giving you a better chance to profit from price fluctuations.

Types of Markets You Can Day Trade

As a day trader, you can choose from several markets, each offering unique opportunities and risks. Here are the most popular markets for day trading:

1. Stock Market

Stocks represent ownership in a company, and their prices fluctuate based on earnings, news, and market sentiment. In the UK, indices like the FTSE 100 provide numerous opportunities for day traders to profit from price movements within a single day.

2. Forex Market 

The forex market is the world’s largest and operates 24 hours a day, making it ideal for day traders. Most traded currency pairs, such as GBP/USD and EUR/USD, are frequently traded in the UK. The forex market offers high liquidity and ample opportunities for short-term price movements.

3. Commodities Market

Commodities such as gold, oil, and natural gas are highly traded, with significant price movements driven by supply, demand, and global events. Traders often focus on liquid commodities like Brent Crude oil and gold, which offer opportunities for quick profits in volatile conditions.

4. Indices Market

Stock indices, like the FTSE 100 or the S&P 500, track the performance of a group of stocks. Day traders take advantage of short-term price changes in these indices, using technical analysis to predict market movements. Indices tend to be less volatile than individual stocks, offering steady trading opportunities.

Types of Day Trading Strategies

1. Scalping

Scalping is one of the fastest-paced strategies in day trading, where traders aim to profit from small price changes over a very short period. Traders will open and close positions in a matter of minutes, sometimes even seconds, to capture tiny profits that add up over the course of the day.

2. Momentum Trading

Momentum traders focus on stocks or assets that are moving significantly in one direction, either up or down. They try to enter positions at the start of a trend and ride it until the momentum slows. This strategy requires quick execution and close attention to market developments.

3. Breakout Trading

Breakout trading involves identifying key support or resistance levels and then entering a trade when the price breaks out of these levels. Traders using this strategy believe that the price will continue to move in the breakout direction.

4. Swing Trading

Swing trading involves holding positions for several hours to days to capitalize on short- to medium-term price movements. Unlike day trading, which focuses on intraday price movements, swing traders aim to profit from price “swings” within a trend. This strategy requires traders to have a keen eye on market patterns, as they look to enter positions at the optimal point of the swing and exit before the trend loses momentum.

Tips on How to Become a Day Trader

Start with a Demo Account

If you’re wondering how can I start day trading, the best way is to practice first. Many brokers, including VT Markets, offer demo accounts where you can simulate real trading conditions without risking your money. This helps you get comfortable with the trading platform and develop a feel for the market.

Set Realistic Expectations

Day trading is not a get-rich-quick venture. Successful traders understand that consistency is key. It’s important to manage your expectations and understand that losses are part of the journey. Start small and gradually increase your trading size as you gain experience.

Stick to Your Strategy

One of the most common mistakes among beginners is overtrading. Having a clear strategy and sticking to it helps you avoid making impulsive decisions driven by emotions. Whether it’s scalping or momentum trading, define your entry and exit points and follow through.

New to trading? Learn how to start trading as a beginner.

Manage Your Risk

Risk management is essential in day trading. Use tools like stop-loss orders to protect your capital and set a maximum daily loss limit to avoid significant losses. Many successful day traders use a risk-to-reward ratio to ensure that their potential profits outweigh the risks.

Conclusion

Day trading requires a strong foundation in both technical and fundamental analysis, a clear trading plan, and effective risk management strategies. Understanding the markets you trade in and developing a disciplined approach are key to success. By using reliable tools, setting realistic goals, and practicing sound risk management, you’ll be better equipped to navigate the challenges of day trading.

Become a Day Trader and Start Trading Today with VT Markets

VT Markets offers comprehensive educational resources, access to a reliable trading platform, and tools like MetaTrader 4 and MetaTrader 5 for seamless trading. With competitive spreads and fast execution, you’ll be able to make the most of every trade. Additionally, you can practice your skills with a demo account before committing real capital. With these tools and resources, you can confidently start your day trading journey and take advantage of a wide range of markets.

Start trading today with VT Markets and begin your journey to becoming a successful day trader.

Frequently Asked Questions (FAQs)

1. What is day trading?

Day trading involves buying and selling financial instruments like stocks, forex, or commodities within the same trading day to profit from short-term price movements.

2. How do I become a day trader?

• Build your knowledge base
• Understand the markets
• Develop a trading plan
• Choose a reliable trading platform like VT Markets
• Fund your trading account
• Implement risk management strategies 
• Monitor and stay informed

3. How can I start day trading?

You can start by opening a trading account with a reputable broker, funding it, and familiarizing yourself with the markets you wish to trade. Starting small and using a demo account will help you gain experience before live trading.

4. What is the best strategy for day trading?

The best strategy depends on your trading style, but popular day trading strategies include scalping, momentum trading, and breakout trading. Each strategy requires careful analysis and quick decision-making.

5. Is day trading risky?

Yes, day trading is risky because of the fast pace and volatility of the markets. However, with proper risk management, education, and discipline, you can mitigate some of these risks.

6. How can I manage risk in day trading?

Risk management strategies include setting stop-loss orders, limiting the size of each trade, and maintaining a favorable risk-to-reward ratio. It’s also crucial to avoid emotional trading and stick to your trading plan.

7. How can I improve my day trading skills?

To improve your day trading skills, you should educate yourself continuously, practice on a demo account, follow experienced traders, and regularly analyze your performance to identify areas for improvement.

On April 9, 2025, Donald Trump pulled a U-turn on his tariff threats—sparing most countries, though not China—and markets went wild. The S&P 500 rocketed 5.2% in a single day, its biggest leap since November 2008, as trillions poured back into global stocks overnight.

From Tokyo’s Nikkei jumping nearly 2% to Europe’s STOXX 600 climbing 1.8%, indices rallied, the US dollar steadied, and even luxury stocks soared. It was a global sigh of relief after days of tension—until the next twist, of course.

How can everyday traders like you make sense of this madness—and maybe even profit from it? In this article, we’ll break down why markets flipped and share simple, practical steps to ride these waves. It’s the kind of day that keeps traders on their toes, but with a plan, you can stay ahead.

How policy shocks move global markets

Tariffs are import taxes—simple as that. When Trump threatened them, companies braced for higher costs, supply chains wobbled, and stocks sank. His pause signalled smoother trade, and markets roared back.

The S&P 500’s 5.2% jump led the charge, but it wasn’t a solo act. Europe’s STOXX 600 rose 1.8%, Japan’s Nikkei gained nearly 2%, and even emerging markets like India’s Sensex saw a lift—all in a day. It’s a global game of trust: when the US, the world’s biggest economy, steadies the rules, everyone breathes easier.

Specific sectors felt the shift too. Autos, pharma, and luxury giants—like Tesla, Pfizer, or LVMH—spiked as trade fears eased, with some stocks gaining 7-10% in hours.

The US dollar held firm as investors cheered stability, while gold, a classic safe haven, dipped slightly from USD 2,650/oz to USD 2,630 as panic faded. Rewind to April 8, though, and it was grim—the Dow shed 300 points, and Asian markets closed jittery on tariff dread.

Picture this: you’d bought shares in Tesla on April 8 when markets dipped, spooked by tariff talk. You nabbed them at USD 420 a share with a USD 200 stake—about half a share. Post-U-turn, Tesla soared 7% to USD 449 by April 10. That half-share would’ve earned you roughly USD 14 overnight—not a fortune, but a tidy win for spotting the dip.

That’s the power of policy shifts: fear one day, fortune the next. Markets are like a global pulse—when the US sneezes, everyone feels it. For traders, it’s a wake-up call: big news doesn’t just nudge prices; it can send them soaring or crashing. The key is understanding the chaos and acting before the dust settles.

Practical trading tips for the next big twist

So, how do you turn chaos into opportunity? Here are some practical moves—no crystal ball needed, just a few smart habits to keep in your back pocket.

1. Stay informed

News moves markets, full stop. Trump’s pause leaked hours before trading began—apps like Reuters, Bloomberg, or CNBC could’ve tipped you off. On April 9, early birds caught the rally’s start, buying into the S&P 500 or Nikkei as they climbed.

Lesson? Check headlines daily; a free news alert could be your edge. For a sharper view, tap into VT Markets’ daily market analysis and Economic Calendar—packed with insights on what’s driving prices and key events to watch, like tariff updates or rate decisions.

It’s not about obsessing over every tweet—just knowing when a U-turn or rate cut hits. A five-minute scroll, plus a quick peek at VT Markets’ tools, could’ve had you ready while others scrambled. Set push notifications for keywords like “Trump” or “trade”—it’s free and takes seconds.

2. Use stop-loss orders

Volatility’s a double-edged sword. Before the U-turn, markets wobbled—perfect stop-loss territory. Set one to cap losses—say, 2% of your USD 500 pot (USD 10).

Imagine you’d bet on the euro dropping against the dollar on tariff fears, entering EUR/USD at 1.0850 with USD 200. The dollar’s post-pause strength pushed it to 1.0870—a stop-loss would’ve cut your loss at USD 5, saving most of your stake.

It’s like a safety net: you might not win every trade, but you won’t lose your shirt. Platforms like VT Markets make it easy—set it once, and it triggers automatically if prices turn sour.

3. Diversify with safe havens

When uncertainty reigns, gold or bonds steady the ship. On April 8, gold held at USD 2,650/oz as stocks slid—then dipped to USD 2,630 as the rally hit. A USD 100 gold ETF buy pre-U-turn could’ve been a calm buffer, sold for a USD 1-2 profit or kept as insurance. Bonds worked too—US Treasuries saw demand before the pause, then eased as stocks rebounded.

It’s about balance: stocks for gains, safe havens for sleep. Before the rally, investors flocked to safety; post-pause, they pivoted back. A small stake in both worlds keeps you grounded when headlines flip.

Conclusion

Trump’s tariff U-turn flipped markets from gloom to boom—the S&P 500’s 5.2% surge, the Dow’s rebound from a 300-point drop, and global gains proved policy matters. One day it’s trillions lost, the next it’s a trillion-dollar rally.

Stay sharp: watch the news, protect your downside with stop-losses, and lean on gold when it’s choppy. You won’t nail every move, but you’ll dodge the worst and catch some wins.

Ready to test the waters? Practice on VT Markets’ demo account—try a USD 100 Tesla trade or a gold buy without risking a penny. Feeling confident? Open a live account with VT Markets today and start small—turn the next headline into your first real win.

Markets love a drama, but with a bit of prep, you can steal the show. Chaos isn’t the enemy—it’s opportunity in disguise. Grab your phone, set those alerts, and get ready for the next twist. You’ve got this.

Global markets jumped on signs of easing trade tensions, but the mood didn’t last in US tech stocks. Optimism gave way to caution as investors weighed the credibility of shifting policy signals and the persistence of inflation. While Asian and European markets held onto gains, Wall Street lost steam—highlighting the fragile confidence driving recent price action.

Nasdaq 100 slips despite global rally as tech sentiment sours

Global equity markets surged overnight, yet the Nasdaq 100 struggled to maintain early momentum, closing Thursday’s session 1.26% lower at 18,924.20.

The index briefly touched 19,244.60 earlier in the day but later reversed gains as US tech sentiment weakened.

Investors grew cautious amid concerns over the durability of policy relief and its ability to support long-term growth in the tech sector.

US tariff policy sparks doubt despite initial optimism

Markets initially welcomed President Donald Trump’s decision to delay most new tariffs for 90 days, fuelling a strong relief rally across Asia and Europe.

However, optimism faded quickly as investors assessed the fine print—tariffs on Chinese goods were hiked to 125%, and a blanket 10% tariff remains on all other imports.

The limited scope of the pause reignited concerns about policy clarity and leadership direction.

Commentators noted the erratic nature of White House decisions during a time of elevated market stress.

Martin Whetton from Westpac described the reaction as markets watching on “with horror,” as policy pivots were accompanied by distractions like executive orders on water pressure.

While Japan’s Nikkei 225 soared by 8% and European futures jumped similarly, US tech stocks failed to follow suit.

A growing “sell America” trend appears to be taking hold, with capital flows shifting towards traditional safe havens such as the yen, Swiss franc, and gold, rather than the US dollar or equity indices.

Bond yields ease but core risks persist

Following a sharp sell-off in the bond market, US 10-year Treasury yields moderated to 4.2774%, down from a recent high of 4.5150% that had sparked fears of another “dash for cash.”

Despite this easing, structural concerns remain. Analysts at LPL Financial highlighted persistent inflation, reduced global demand, hedge fund deleveraging, and market illiquidity as ongoing threats to stability.

Minutes from the Federal Reserve’s latest meeting confirmed policymakers remain focused on taming inflation, showing little urgency to cut rates.

Market expectations for rate cuts by year-end have adjusted accordingly, now pricing in 80 basis points of easing, down from 100 earlier this week.

Technical analysis: Bullish structure holds despite resistance

From the recent low at 16,633.95, the Nasdaq 100 has staged a strong V-shaped recovery, with price action shifting decisively from lower lows to higher highs.

Momentum indicators remain supportive—the MACD crossed bullishly well below the zero line, with growing green histogram bars suggesting underlying strength.

Moving averages across the 5, 10, and 30-period windows are stacked in a bullish formation, reinforcing the upward trend.

The index has cleared multiple resistance levels, including the psychological 18,000 mark, and peaked near 19,244.60.

However, it has since entered sideways consolidation just below this zone, with the 18,600–18,800 region now acting as key support.

A move above 19,250 could signal renewed upside and pave the way for a test of earlier highs.

However, traders should watch for a MACD rollover or a breakdown in the moving average stack, which may suggest fading momentum.

Outlook: Caution prevails amid policy and inflation risks

The Nasdaq 100’s inability to sustain gains—despite widespread global optimism—signals growing scepticism around the effectiveness of recent policy moves.

Escalating tariffs on Chinese goods and a resolute Federal Reserve suggest that pressure on corporate margins may persist, particularly in the tech sector.

Unless upcoming CPI and PPI data show an unexpected softening in inflation, volatility is likely to remain elevated.

Support for the Nasdaq 100 lies around the 18,500 level; a drop below that may open the door to a deeper retracement towards 16,600. On the upside, resistance remains firm at 19,250.

Click here to open account and start trading.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

The yuan is back in the spotlight as fresh US–China trade tensions rattle markets and raise questions about Beijing’s next move. With pressure mounting on China’s currency, investors are weighing the risk of further declines and watching closely for signs of official intervention. Here’s what the latest shift means for the offshore yuan and broader market sentiment.

Offshore yuan hits record low amid escalating US-China trade tensions

The offshore Chinese yuan (USDCNH) fell to a record low of 7.4288 against the US dollar on 9 April, as intensifying trade tensions between the US and China heightened investor uncertainty.

The currency later recovered slightly during the Asian trading session, climbing 0.62% to 7.3833.

This notable depreciation followed the United States’ announcement of a 104% tariff on Chinese imports, prompting concerns over the yuan’s stability and the broader consequences of the growing trade dispute.

Chinese state banks act to stabilise the yuan

In response to the rapid decline, Chinese state-owned banks intervened by selling US dollars in the forex market to slow the yuan’s fall.

Simultaneously, the People’s Bank of China (PBoC) set the onshore yuan’s (USDCNY) midpoint at 7.2066—its weakest level since September 2023.

The PBoC remains active in managing the yuan’s trajectory. Although a weaker yuan can enhance export competitiveness, sustained depreciation may result in capital outflows and undermine financial market stability, making intervention necessary.

Technical analysis: bearish signals emerge for USDCNH

The USDCNH pair declined by 0.55%, ending the session at 7.3828 after peaking at 7.4288. While the pair opened higher, it reversed gains as selling pressure intensified.

From a technical standpoint, the moving averages (5, 10, and 30) point to a bearish trend, with shorter-term averages crossing below longer-term ones.

The MACD indicator (12, 26, 9) also confirms this sentiment, displaying a negative histogram and a MACD line positioned beneath the signal line.

The key technical levels to monitor are resistance at 7.4288 and support at 7.3361. A break below support may suggest further downside, while a move above resistance could signal the start of a rebound.

Outlook: yuan volatility likely to persist amid trade tensions

As the US–China trade dispute drags on with no clear resolution in sight, the offshore yuan is expected to remain under pressure. The intensifying rhetoric and policy moves from both sides have amplified market uncertainty, prompting traders to adopt a more cautious stance.

While a weaker yuan could offer short-term support to China’s export sector, prolonged depreciation risks triggering capital outflows and undermining investor confidence.

Going forward, the direction of the yuan will likely hinge on the outcome of trade negotiations, any escalation in tariffs, and the extent of intervention from the People’s Bank of China (PBoC).

Market participants will also be watching global risk sentiment, economic data from China and the US, and signals from central banks. In the absence of a diplomatic breakthrough, currency volatility is likely to remain elevated, leaving the yuan exposed to further swings in the near term.

Click here to open account and start trading.

Dear Client,

New contracts will automatically be rolled over as follows:

Please note:
• The rollover will be automatic, and any existing open positions will remain open.
• Positions that are open on the expiration date will be adjusted via a rollover charge or credit to reflect the price difference between the expiring and new contracts.
• To avoid CFD rollovers, clients can choose to close any open CFD positions prior to the expiration date.
• Please ensure that all take-profit and stop-loss settings are adjusted before the rollover occurs.
• All internal transfers for accounts under the same name will be prohibited during the first and last 30 minutes of the trading hours on the rollover dates.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

A Comprehensive Guide to What Is Day Trading in the UK for Beginners

Day trading has become one of the popular ways to capitalize on short-term market fluctuations, offering traders the opportunity to leverage market movements within a single day. While day trading can offer exciting opportunities to capitalize on these fluctuations, it’s crucial to understand the risks involved and approach it with the right mindset. In this guide, we’ll break down the essentials of day trading in the UK, providing you with the knowledge to get started and navigate this fast-paced trading strategy.

What is Day Trading?

Day trading is a strategy where traders buy and sell financial assets, such as stocks, forex, or commodities, within the same trading day. The goal is to capitalize on small price fluctuations throughout the day, taking advantage of market volatility. Unlike long-term investing, where assets are held for months or years, day traders aim to open and close their positions before the market closes, ensuring no overnight risk.

The key to day trading is timing. Traders use various tools, including technical analysis, charts, and real-time news, to identify opportunities. By entering and exiting the market swiftly, day traders can make profits from even the smallest price movements. However, this also requires quick decision-making and discipline, as the success of a trade often depends on precise timing and market knowledge. 

How Does Day Trading Work?

Day trading revolves around executing multiple trades within the same day, aiming to capitalize on small price fluctuations. Unlike long-term investments, where positions are held for extended periods, day traders focus on short-term opportunities, often opening and closing trades within minutes or hours.

For example, a trader might notice that a particular stock is experiencing a sharp uptick in volume and enters the market to take advantage of the trend. Once the price increases to a target level, the position is closed. The rapid pace of trading means that day traders must be highly disciplined, acting quickly to secure profits or cut losses, depending on market movements.

How to Get Started with Day Trading in the UK?

If you’re interested in diving into day trading in the UK, here’s a step-by-step guide to help you get started:

Step 1: Understand What Day Trading Is

Before starting, familiarize yourself with day trading basics. This involves buying and selling financial assets on the same day to profit from short-term price fluctuations.

Step 2: Choose the Market Suitable for Day Trading

Select a market that fits your trading style, such as forex, stocks, or commodities. Look for markets with high liquidity and volatility, which are crucial for successful day trading.

Step 3: Select a Reliable Broker

Choose a regulated broker like VT Markets that offers access to various markets and provides the necessary tools and resources to execute trades efficiently.

Step 4: Open a Trading Account

Set up a trading account with your chosen broker. Many brokers, including VT Markets, offer demo accounts where you can practice trading with virtual money before using real capital.

Step 5: Start Small and Practice

Start with small trade sizes to limit risk while you gain experience. Use demo accounts to practice and get comfortable with the platform before moving on to live trades.

Step 6: Utilize Risk Management Tools

To protect your capital, use risk management strategies such as setting stop-loss orders and managing position sizes. This helps minimize potential losses.

Step 7: Monitor and Stay Informed

Day traders must stay informed by keeping an eye on market news, economic events, and market trends. This helps make timely, well-informed trading decisions.

What Are the Markets for Day Trading in the UK?

Day traders in the UK have access to several markets that offer high liquidity and volatility, which are essential for day trading. The most common markets for day trading in the UK include:

1. Forex Market: 

Forex trading allows traders to buy and sell currency pairs. It is ideal for day traders due to its 24-hour trading cycle and the ability to leverage small price movements.

Discover the top 8 most traded currency pairs globally. 

2. Stock Market: 

Day traders often trade stocks listed on the London Stock Exchange (LSE), taking advantage of price fluctuations throughout the trading day.

Discover the top 10 largest stock exchanges in the world.

3. Indices: 

Major indices such as the FTSE 100 are also popular among day traders. These indices represent the performance of top UK companies, and their price movements provide opportunities for quick gains.

4. Commodity Markets: 

Commodities such as oil, gold, and silver are highly traded in the UK. Their prices are often volatile, making them attractive to day traders.

Discover the most traded commodities worldwide.

Types of Day Trading Strategies

Day trading strategies vary depending on the trader’s experience, risk tolerance, and market conditions. Some of the most common strategies include:

1. Scalping:

Scalping is one of the fastest day trading strategies. It involves making numerous small trades throughout the day, aiming to capture tiny price movements. A scalper typically holds positions for just a few seconds to minutes. This strategy requires quick decision-making and precise timing, as the goal is to make profits from minimal price changes. Scalpers usually focus on highly liquid markets, such as forex, to ensure they can enter and exit trades efficiently.

Example: A trader may spot a minor fluctuation in the GBP/USD pair, buy the currency, and sell it within minutes for a small profit. This process is repeated multiple times throughout the day.

2. Momentum Trading:

Momentum trading capitalizes on the continuation of trends. Traders using this strategy look for stocks, forex pairs, or commodities with strong upward or downward momentum, driven by news, earnings reports, or market sentiment. Once a momentum trade is identified, the trader enters the market and holds the position as long as the trend continues, aiming to profit from the movement until it starts to reverse.

Example: A trader notices that a stock has spiked following positive earnings results. The trader enters a long position, riding the momentum until the stock begins to lose steam.

3. Swing Trading:

Swing trading sits between day trading and longer-term investing. Although typically held for a few hours or days, positions are closed before the end of the trading day to avoid overnight risks. Swing traders focus on identifying short-term price “swings” within a broader trend, using technical analysis to time their entries and exits. It’s a more flexible strategy, appealing to those who can’t monitor the market constantly but still want to capture price moves within a day.

Example: A trader spots a reversal pattern in a stock and enters a position, planning to hold it for a few hours to profit from the expected price swing before closing the trade at the end of the day.

4. Breakout Trading:

Breakout traders focus on key support or resistance levels and aim to enter the market as the price breaks through these levels. A breakout suggests that a significant price move is likely to follow, and traders capitalize on this shift by entering at the breakout point. This strategy requires careful monitoring of price patterns to spot when the market is ready for a breakout.

Example: A stock has been trading in a narrow range, and once it breaks above resistance, the trader enters a long position, expecting the price to continue rising as more traders jump on the breakout.

Day Trading Example: GBP/USD Trade

A day trader notices that the GBP/USD forex pair is showing strength due to positive economic news from the UK, such as stronger-than-expected GDP growth figures. After analyzing the charts using technical analysis, such as identifying a key support level and confirming the upward trend with momentum indicators, the trader decides to enter the market with a long position at 1.4000, expecting the price to rise throughout the day.

As the price moves in the desired direction, the trader sets a take-profit level at 1.4050, targeting a 50-pip gain. Within a few hours, the price reaches the target, and the position is automatically closed at 1.4050, securing the profit.

To protect against potential losses, a stop-loss order is set at 1.3950. If the price had moved against the position, the stop-loss would have limited the loss, ensuring that the trader’s capital is protected.

Advantages and Disadvantages of Day Trading

Like any trading strategy, day trading comes with both its benefits and challenges. While it offers opportunities for quick profits, it also involves certain risks and requires a significant time commitment.

Advantages:

Profit Potential: Day trading presents opportunities to take advantage of short-term market fluctuations, allowing traders to potentially benefit from price movements within the same day.

No Overnight Risk: By closing all positions before the end of the trading day, day traders eliminate the risk of holding positions overnight, where unexpected events can cause major price swings.

Liquidity: The high liquidity in many markets allows day traders to enter and exit trades quickly, ensuring that they can execute trades at favorable prices.

Disadvantages:

High Stress: Day trading requires quick decision-making and constant attention to market movements. The stress of trading multiple positions in a short time frame can be overwhelming.

Emotional Discipline: Trading on emotions, such as fear or greed, can result in poor decision-making. Traders must maintain discipline to avoid emotional trading.

Significant Risk: While profits can be substantial, losses can also be significant, especially when leveraging positions. 

Common Mistakes to Avoid for Beginner Day Traders

Overtrading: Many beginners make the mistake of trying to trade too often, which can lead to losses and increased transaction costs. It’s essential to trade based on a strategy and avoid impulsive decisions.

Chasing Losses: Another common mistake is trying to recover losses by making more trades, which can lead to even greater losses. Successful day traders stick to their plan, even during tough times.

Lack of a Plan: Without a clear trading plan, it’s easy to fall into the trap of random trading. A well-defined plan with risk management rules helps guide traders toward consistent profitability.

Ignoring Risk Management: Trading without a stop-loss or position size limits can lead to significant losses. Risk management tools are essential for protecting your capital.

Conclusion

Day trading in the UK offers a dynamic way to potentially profit from short-term market movements, but it’s essential to approach it with the right tools, strategies, and risk management techniques. With various strategies such as scalping, momentum trading, and breakout trading, there are opportunities to adapt to different market conditions. However, the risks are equally present, requiring traders to stay disciplined, avoid common mistakes, and continuously improve their skills.

Whether you’re just starting or looking to refine your day trading strategy, it’s important to remember that success requires time, practice, and the right support. With the proper foundation and mindset, day trading can be a rewarding venture.

Start Day Trading in the UK with VT Markets Today!

Ready to start day trading in the UK? VT Markets provides the tools you need, including MetaTrader 4 and MetaTrader 5 for precise and flexible trading. With a VT Markets demo account, you can practice day trading without risking real capital and build confidence before going live.

Create an account today and start your day trading journey with VT Markets – your first step toward success!

Frequently Asked Questions (FAQs)

1. What is day trading?

Day trading involves buying and selling financial instruments within the same trading day to capitalize on short-term price movements.

2. How do I start day trading in the UK?

To start day trading in the UK, choose a regulated broker like VT Markets, set up a trading account, practice using demo accounts before trading with real money, implement risk management strategies such as stop-loss, and execute your first trade.

3. What are the best markets for day trading in the UK?

Popular markets for day trading in the UK include forex, stocks, commodities, and indices.

4. What strategies can I use for day trading?

Common day trading strategies include scalping, momentum trading, swing trading, and breakout trading.

5. Can I make money from day trading?

While day trading offers significant profit potential, it also involves high risk. Success depends on your trading skills, strategies, and risk management practices.

6. What is the best time to day trade in the UK?

The best time to day trade in the UK is during the overlap of the London and New York trading sessions, typically between 1:00 PM and 4:00 PM (UK time). This period sees the highest liquidity and volatility, which provides more trading opportunities.

7. Is day trading legal in the UK?

Yes, day trading is completely legal in the UK, as long as you’re using a regulated broker.