Facts of Day Trading
Are you thinking of entering the fast-paced world of day trading? Arm yourselves with the information from this fact sheet on day trading.
What is day trading?
Day trading is an investment tactic that does online daily stock trading with a relatively short investment. Those who do day trading usually buy and sell securities during the same market day and, as a general rule, do not hold stocks overnight. Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations.
How is day trading different from swing trading?
Day trading relatively holds the stock for only the day. After the stock market closes, a day trader has no stock in his hands. Swing trading holds a stock for at least a few days, waiting out for the best price before dumping it back to the market. Day trading is much more stressful and requires guts and a keen business sense. Once you get good at day trading, you can earn up to $50,000 from your initial investment.
How much capital would you need for day trading?
You need an investment equivalent to buy 1000 stocks. That is roughly around $20,000. Because the chances are small that you will find a marketable stock with a price of under $20, this is enough to get your day trading underway. However, you must remember that this is a 100% risk capital so do not worry too much if you lose this amount very early.
What are the general rules for day trading?
- Always trade with the trend.
- Cut losses short
- Never get emotionally involved in your trades.
What are the most suitable stocks to trade for day trading? It is advisable to trade high volume stocks. Go with the trend with the popular stocks available. It'll be easier for you to sell those stocks at the end of the day trading.
How does a usual day trading transaction occur?
For example, at 10:00 AM a day trader might buy 1000 shares of stock XYZ just as the price begins to rise on good news, then sell it at 10:04 AM when it's up by 1/2 ($0.50). The day trader makes $500, minus commission. With today's cheap commissions of $29.95 or less per trade, that's a quick $440.10 or better, excluding taxes.
Most people who deal with day trading spend all of their time in front of the computer, watching the slightest change in the stock price. As the prices go up and down, the day trader must be alert as to when to sell his stock or wait for the moment to hold on it. This can be a very stressful lifestyle as a mere second could mean an increase of half the stock price and missing that moment for any person engaging in day trading could mean a loss on his investment.
Day trading is not a get rich scheme. It is serious business where you could lose everything within minutes because of wrong information. Before jumping into day trading, remember to do your homework first. Go to seminars on day trading, use simulations if possible and practice reading market indicators. To be a successful day trader, don't just need luck. Knowledge and experience counts. Welcome to the world of stock markets and investments!
For More Information and articles about day trading check out the forex trading center.
 Google News Updated : Sun, 06 Jul 2008 06:55:22 GMT Argentine Lower House Passes Grain Export-Tax Plan (Update3) - Bloomberg
Bloomberg - By Eliana Raszewski July 5 (Bloomberg) -- Argentina's lower house of congress approved the government's plan to increase taxes on exports of grains and oilseeds, risking a resumption of three months of strikes by farmers. Export Tax That Angers Farmers Advances in Argentina Argentina lawmakers approve farm export tax hike Publ.Date : Sat, 05 Jul 2008 22:41:30 GMT Obama "puzzled" by Iraq comment frenzy - Reuters
Reuters - By John Whitesides, Political Correspondent ST. LOUIS (Reuters) - Democratic presidential candidate Barack Obama said on Saturday his plan to end the Iraq war was unchanged and he was puzzled by the sharp reaction to his statement this week that he ... Obama struggles to thread needle on Iraq Obama Refines the Blame on Iraq Miscue Publ.Date : Sun, 06 Jul 2008 05:08:23 GMT Analysis: McCain struggles to regain footing - The Associated Press
The Associated Press - WASHINGTON (AP) - John McCain calls himself an underdog. That may be an understatement. The GOP presidential candidate trails Democrat Barack Obama in polls, organization and money while trying to succeed a deeply unpopular fellow Republican in a year ... Rural voters lean to the GOP Neither Obama nor McCain meets Energy Party standard Publ.Date : Sun, 06 Jul 2008 04:40:55 GMT Smallest planet shrinks in size - BBC News
BBC News - The smallest planet in the Solar System has become even smaller, studies by the Messenger spacecraft have shown. Data from a flyby of Mercury in January 2008 show the planet has contracted by more than one mile (1.5km) in diameter over its history. First Results From Messenger's Mercury Flyby Mercury is shrinking, NASA craft finds; a cool clue: 'lobate scarps' Publ.Date : Fri, 04 Jul 2008 11:45:26 GMT Hippie Arrests Draw ACLU’s Attention - New York Times
New York Times - By AP CHEYENNE, Wyo. (AP) - The American Civil Liberties Union said on Saturday that it would investigate the actions of federal officers who had arrested five members of the Rainbow Family in western Wyoming during the group’s annual gathering. ACLU plans to investigate Rainbow Family treatment ACLU to investigate Rainbow Family treatment Publ.Date : Sun, 06 Jul 2008 00:40:38 GMT Ore. man completes flight of fancy _ in lawn chair - The Associated Press
The Associated Press - CAMBRIDGE, Idaho (AP) - Using his trusty BB gun to help him return to Earth, a 48-year-old gas station owner flew a lawn chair rigged with helium-filled balloons more than 200 miles across the Oregon desert Saturday, landing in a field in Idaho. Video: Ore. Man Uses Balloons and a Lawn Chair to Fly Believe it or not, he's lounging on air Publ.Date : Sun, 06 Jul 2008 05:50:31 GMT McCain Battles a Nemesis, the Teleprompter - New York Times
New York Times - Mary Altaffer/AP By MARK LEIBOVICH LAS VEGAS —Senator John McCain was performing relatively smoothly as he unveiled his energy plan. McCain Campaign, in Relaunch, Seeks Tighter Message Focus McCain Campaign on Obama and Iraq Publ.Date : Sat, 05 Jul 2008 23:31:52 GMT Easy Work At Home Opportunity |
PARLOT::Ebooks, Scripts,
Websites, and more... Forex trading, or foreign currency trading, has become a bit... Read More You know the old joke:"How do you make a million... Read More I remember the first time I started to trade online.... Read More There is one very important factor that you should consider... Read More Which way will the forex market move? Do you just... Read More Cut your losses short and let your profits run. This... Read More Over the past several years, the popularity of online currency... Read More You may be asking yourself "how does one begin to... Read More The business world is a complex web of supply and... Read More "Is it important to be creative in your trading?"I'm not... Read More Since the US dollar is the centerpiece of the market,... Read More Everybody hates to lose and unfortunately no one is blessed... Read More If you ask me whether the market will have moved... Read More The psychological aspect of trading is usually underestimated by those... Read More The investor in the currency market takes for granted that... Read More There are many types of investment methodology out there. All... Read More Have you noticed that when someone's trying to sell you... Read More Discretionary TradingPure discretionary trading will rely solely on the traders... Read More The base unit for the renminbi is the yuan, which... Read More Long TermLong term traders will work from end of day... Read More Currencies are traded in dollar amounts called "lots". One lot... Read More Forex option brokers can generally be divided into two separate... Read More What Is Commodity Trading?Commodity futures markets allow commercial producers and... Read More What is Forex Trading?Forex, or Foreign Exchange, is the simultaneous... Read More To trade on the forex market, the largest financial market... Read More
Adsense
websites
Forex Trading Can Be Like Day-trading
Risk and Stock Trading Fees: The Two Barriers To Overcome If You Want A Successful Trading Career.
Online Stock Trading: Freedom of Trade
The Meaning of FOREX Price Charts and How to Use Them
Forex Training: Follow Your Gut or Your Broker
Trade Exit - How To Cut Losses And Let Profits Run
Why Demo Account Performance Is Often Better Than Real Account Performance
Trading Profitably on the Foreign Exchange Market
Business and the Forex
Creativity in Trading
The Major Players in the Foreign Currency Exchange Market - FOREX
How To Handle A String Of Losses
Where is the Market Going?
Psychology Of Trading
A Look at Forex Market Makers
Discovering Turnaround Candidates
Intrenet Marketing VS Forex Currency Trading
Mechanical or Discretionary Trading - Which is Best?
Chinas New Currency Regime
Trading Timeframes
The Seven Most Traded Currencies in FOREX.
What are Your Options Regarding Forex Options Brokers?
Commodity Trading - Advantages and Disadvantages
Forex Trading - Advantages and Disadvantages
Forex Broker Involvement Optional
Affordable and Reliable Web Hosting Starting at $4.49/Month
Forex Market Overview
"FX" is an abbreviation of "forex" or "foreign exchange." Foreign... Read More
What are Your Options Regarding Forex Options Brokers?
Forex option brokers can generally be divided into two separate... Read More
The Margin Advantages of Trading FOREX.
There is one aspect that is considered as one of... Read More
Forex Training: Follow Your Gut or Your Broker
Which way will the forex market move? Do you just... Read More
Getting a Forex Trading Education
Many Americans are interested in getting involved in forex trading.... Read More
The Seven Most Traded Currencies in FOREX.
Currencies are traded in dollar amounts called "lots". One lot... Read More
Commodity Trading - Advantages and Disadvantages
What Is Commodity Trading?Commodity futures markets allow commercial producers and... Read More
How Currencies are Traded in the FOREX Market
Currencies are traded in dollar amounts called "lots". At 100:1... Read More
Reality of Online Forex Trading
Foreign exchange trading is the trading of currencies. Most currencies... Read More
Why Hedge Foreign Currency Risk?
International commerce has rapidly increased as the internet has provided... Read More
Disgruntled
The following situation happens quite often to many traders. Look... Read More
A Beginner?s Guide to FOREX
FOREX is the abbreviation for the Foreign Exchange market. FOREX... Read More
Forex Brokers - Helping to Maximize Your Success
A Forex broker is a broker dealing in foreign exchange,... Read More
10 Steps To Professional Day Trading
Everyone trades a little differently. The trading method outlined below... Read More
Online Futures Trading - Advantages and Disadvantages
What Is Online Futures Trading?A futures contract is an agreement... Read More
FOREX - Where Fortunes Are Made Everyday
The Foreign Exchange Market ? better known as FOREX -... Read More
A Short Introduction To FOREX
FOREX is the world's largest and most liquid trading market.... Read More
Writing A Trading Plan
All professional traders have a trading plan. Trading futures is... Read More
How To Control Fear And Greed In Trading
There is an old saying that the market is driven... Read More
Choosing A Forex Broker
With currency trading becoming ever more popular, the number of... Read More
Trade Exit - How To Cut Losses And Let Profits Run
Cut your losses short and let your profits run. This... Read More
Example of a Profitable Transaction in FOREX
To make a profit, in the FOREX, a trader can... Read More
Forex Trading Can Be Like Day-trading
Forex trading, or foreign currency trading, has become a bit... Read More
Financial Crises, Global Capital Flows and the International Financial Architecture
The recent upheavals in the world financial markets were quelled... Read More
Dont Deny Reality
If you want to be a successful trader, you must... Read More
Currency Trading |