Category: Day Trading

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.

0 - 500
0
500

Financial Freedom Investing: Latest Reliable & Profitable Income Streams. How to Never Be Broke, and Create Passive Incomes: Stocks, Bonds, Day Trading, Dividends, Real Estate and Budgeting

Financial Freedom Investing: Latest Reliable & Profitable Income Streams. How to Never Be Broke, and Create Passive Incomes: Stocks, Bonds, Day Trading, Dividends, Real Estate and Budgeting

Are you eager to start investing but scared of putting your hard-earned cash in investment tools that you do not fully understand? Are you looking for a straightforward no BS guide to money management that you can implement ASAP? Have you ever wondered if you’ve saved enough for a comfortable retirement? Then you need to…

The Market Whisperer: A New Approach to Stock Trading

The Market Whisperer: A New Approach to Stock Trading

NOW IT’S TIME TO CHANGE YOUR LIFE! Are you tired of not moving ahead? Now is the time to make the decision to change. Let me teach you how to break the routine, work less, enjoy the good life you deserve, and become financially independent. I’ll teach you, step-by-step, to become a trader, skilled at…

Maximum PC

Maximum PC

Maximum PC is the go-to resource for PC enthusiasts. Every issue is chock-full of the latest computer technology news, reviews of the hottest hardware, detailed how-to projects, and in-depth feature stories aimed at hardcore computer hobbyists and anyone else who wants to learn how to do more with their PC. The Kindle Edition of this…