Day trading is the purchase and sale of a security within a day. This means that investors purchase securities and sell them within a single trading day. Why do they do this? Simple, to earn profits. Day trading requires a degree of expertise and knowledge of the market and industry, most day traders are well educated, know the intricacies of the market they trade in and are well funded. Day trading is prevalent mostly in the foreign exchange (FOREX) and stock markets because these markets in particular are well suited for day trading.
Basically day traders use their knowledge and experience to speculate the rise or fall in the value of securities they trade in, based on this judgment they take buying and selling decisions to make profits on small price movements. For example if the day traders know that a major car review magazine is going to publish a positive review on Tesla, then the day traders will speculate that this review will result in a rise in the stock price because more investors will want to invest in Tesla because of positive review, thus the day traders will buy the shares before the interview is published and sell the securities once the share prices spike.
Day traders know the intricacies of the market and thus scheduled news and announcements such as economic statistics, policy reveals, press briefings, earning reports etc which result in spikes in market are watched closely by the day traders because these spikes have the potential of giving them profits.
It’s easy to get caught up by the idea that you can make quick profits in the stock market, but day trading makes virtually no one rich. Research suggests that 99% of day traders fail to consistently make money and the vast majority lose money.
If you’re still interested in day trading, it’s important to follow some rules so you don’t get in over your head.
Here are some books on how to approach day trading.
“As a veteran reader of some 500+ trading and investing books and having interviewed hundreds of authors, I never take the approach that you can believe what you read or hear about how to make money in the market, so I try their theory, system, or ideas. Jeff Augen’s book lays down clear guidelines to…
Buy Now Publishing, Skullpilot Click Buy Now for Updated Price. Estimated Price: $6.99 Click Buy Now for Updated Price. Estimated Price: 6.99 Buy Now %%item_customer_reviews%% Originally posted 2020-12-22 03:07:03. Republished…
Trend trading lets the market do the work for you Is your portfolio doing all it should? Are you looking for a market-focused way to increase returns? Try your hand at trend trading. Instead of analyzing the performance of a company, analyze the performance of the market as a whole. When you spot a trend,…
Increase profit and limit risk with swing trading basics Swing trading is all about riding the momentum of brief price changes in trending stocks. Although it can be risky, swing trading is popular for a reason, and Swing Trading For Dummies, 2nd Edition, will show you how to manage the risk and navigate the latest…
Buy Now Schwager, Jack D. Click Buy Now for Updated Price. Estimated Price: $31.50 Click Buy Now for Updated Price. Estimated Price: 31.50 Buy Now %%item_customer_reviews%% Originally posted 2020-12-29 05:00:07….
Are you a trader or investor and earn money on the stock market? Than this funny traders design is perfect to tell the world in no uncertain terms that you’re into trading. Heartbeat Design with candlestick formation and the funny saying is it monday yet.This trading design is a must have for money managers, day…
You love currencys and foreign exchange? You are a proud forex trader? Then get this cool Pips Buy Sell Gift T-Shirt now or use it as a birthday or christmas gift idea for someone who loves currencys and foreign exchange.You like to use a broker, your skills and some pips and always want to be…
Test your trading knowledge and skills—without risking any money You may read the best trading book, but how much of that knowledge will you retain a week later? This is why you need this Study Guide for The New Trading for a Living. It’ll give you a firmer grasp of the essential trading rules and…
Leverage your investment in this stock investor attire. Are you a stock trader? This stock trader outfit makes a stock investor gift for a stock trader like you. Make an awesome statement with this stock trading designed outfit.Make the right investment in this funny stock trader design. Are you looking for an ideal stock market…
Day trading is like the Ferraris, Bugattis, and Lamborghinis of cars: they’re exciting, fast, and sexy. Exciting because it provides relatively high returns by taking relatively high risks. They’re fast because trading positions are opened and closed all on the same day, many times in a matter of hours or minutes only. It also provides…
