If you like dealing with other people's money, then perhaps trading for a job is what you need to be doing. This type of investing works daytime hours only, from the moment stock exchange trading starts at 9 am until it closes at 4 pm in the afternoon, you're able to do plenty of trading in that amount of time. Or you might like to do day trading for living with your own money, this way if you loose it, then you've got nobody to fault but yourself. Even so, it may be a good way to watch your money grow as well. The following is the basic concept of what day trading is centered on. Possibly it is your cup o'joe, maybe not, only you can decide.
Trading for a living happens when you are taking a position in the markets having a view of squaring that position before the end of that day. Day trading for a living means a trader typically trades many times a day trying to find fractions of a point to a couple of points per trade, however, by the end of the day she or he will close out all their positions. The aim of the day trader is to make the most of price movement within one trading day. Different from investors, the day trader will hold positions for only a few seconds or minutes, and never overnight.
The meaning of day trading is actually a confusing term. True day trading means not holding on to your stock positions past the current trading day, which means your not suppose to hold on to your stock overnight. Trading in this way is usually the safest way to do day trading, using this method you are not subjected to the possible losses that can happen if the stock marked is closed because of news that will affect the prices of your stocks. There are lots of individuals out there today that are not very good day traders, they're essentially more like con artists just out to take your hard earned money. As a result of greed, they'll hold your stock overnight, setting themselves up for the catastrophic elimination of their capital. In day trading currency, the term day trading changes slightly. Because currencies can be traded 24-hours a day, there can not be any overnight trading. You can have open positions for more than a day with active stop losses than can be activated anytime.
There are several different kinds of day traders around nowadays, it may really be split into a variety of styles.
Scalpers- This type of day trading requires the quick and repetitive selling and buying of a big number of stocks within a few minutes or seconds. The objective here is to make a small per share profit on each deal while decreasing the risk.
Momentum Traders- This kind of day trading entails determining and trading stocks that are in a moving pattern throughout the day, so that they can buy such stocks at bottoms and sell at tops.
The main advantages of day trading for a living is there are no overnight risks. Due to the fact positions are closed before the end of the trading day, news and events affecting the next trading day's opening prices don't affect your patron's portfolio. Day trading for a living has a increased leverage on your client's capital because of the low margin requirements as their trades are closed inside the same market day. This greater leverage can increase your client's earnings if employed wisely.
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