Strategies Of Day Trading Essay

663 words - 3 pages

Day trading is a fairly new development of the stock market. Day trading refers to buying and selling a stock in the same day. Day traders normally trade common stocks, currencies, or stock options. Day trading is normally done by professional investors. However, it has also become a popular way to make money at home for others.

In 1975, Wall Street ended the set fee on stock trades. Day trading then became a reality to investors. Before this, traders collected their order information with brokers using ticker tape. The Securities and Exchange Commission decided that fixed commissions are legal in 1975. Legalizing fixed commissions marked the beginning of discount brokers. Short term trading became profitable. This is how day trading was born.
Trader Mike Thoughts on day trading.
Commodity Systems Inc. A day trading portal guide.
Federal Reserve Bank of New York Day trading in the overnight federal funds market.

Anyone can become a day trader. But in order to be a successful day trader, you must have the proper access and characteristics. For example, knowledge and experience in the market is a must. Day traders must have the understanding of market fundamentals in order to succeed. Day traders also must have money or capital. In order to make money from the trade, you must have money to trade. Traders sometimes borrow money to use in the market. This is called leverage. Day traders need to have discipline with the money they trade. Day trading with discipline means that you should never use money that you cannot afford to loose or act impulsively from emotions. Day traders should also have computer with a high speed Internet connection.
U.S. Securities and Exchange Commission Reports of Examinations of day trading broker dealers.
Successful Forex Trading Learn to trade Forex stocks.
Day Trading Robot Review What Does Portfolio Mean In Stock Trading?

Six types of strategies are used for day trading. The first is Trends...

Find Another Essay On Strategies of Day Trading

Market Composition Essay

1682 words - 7 pages market and toward higher systematic risk stocks during bear markets, thereby experiencing poor portfolio performance. Looking into the trading behavior of 4.74 million individual and institutional investors across Mainland China for the period April 2001 through August 2002, Ng and Wu (2007) find that Chinese institutional investors pursue momentum investing, while less wealthy Chinese individual investors at large adopt contrarian strategies

Does Contracts Size Matter? Essay

2115 words - 8 pages debates about the stock market efficiency. The reported insider trading transactions provide us an opportunity to measure market reaction (semi-strong efficiency) around the day of reporting of insider trades, which has scientific implications of insider trading on market efficiency. Optimal trading Strategies Investors or traders use various trading strategies to obtain excess returns, for example, the value-based strategy or the contrarian

The Trading Dynamics of Institutional Investors

1474 words - 6 pages of institutional investors on capital markets has induced to increased research on the behavior of this group of investors both by academics and policy makers, who tend to believe that institutional investor follow momentum based strategies, and often are alleged to herdinglike behavior and following destabilizing trading strategies. Recent studies investigating the behavior of institutional investors document three main results. First

The Effect of High Frequency Trading Systems on Financial Markets

1394 words - 6 pages European Commission to propose that HFT firms will be required to be market makers throughout the trading day, regardless of market conditions. Market participant Getco, one of the largest HFT firms, argues in a letter to the SEC that the firm actually commits more capital and provides more liquidity during volatile periods, thus supporting market stability when it is most needed (Grant, 2010). On top of this, an independent study (Makan, 2011

High Frequency Trading

1669 words - 7 pages what the strategies behind HFT are.   How does HFT works: As explained above

The End Of E?

3779 words - 15 pages . Furthermore, traders have varying market strategies and trading requirements. Physical traders in the power markets are concerned with multiple variables such as volume, on-peak time, or delivery grid; speculators prefer to trade fixed amounts so that the only variable is price. A broker knows the trader, has a detailed understanding of their positions, and intrinsically knows how to handle their criteria. A live broker is in touch with market sentiment

Investing Online

791 words - 3 pages more people will be using the Internet to do most of their investing. Addiction to Online Trading The growth of online trading has generated a new breed of addicts: the average day trader. The average day trader looks at the stock market in the same manner as they would a casino. With the stock market, many believe they have a higher probability of winning than in a Las Vegas casino. By winning, I am referring to generating a return


1105 words - 4 pages been considered as a violation of market efficiency. The main objective of this study is to determine market reactions around the day of insider trading and the day of announcements on Indian stock market. We are curious to perform our analysis on Indian data because a major chunk of studies on insider trading are concentrated on the U.S data. Therefore, the analysis of India insider trading data provides an independent outcome to compare with

The Internet’s Impact on Stock Trading

2550 words - 10 pages "The Internet’s Impact on Stock Trading" Before the internet, stock trading was done exclusively through brokers. Now that computers and technology have apparent strongholds in the realm of stock trading, more people have access to the market. This essay shares some experiences that online stock trading services and day traders have had due to the radical movement of online trading. The essay commences with a fictional anecdote that

Short-Term Spot Electricity Price Modeling in Competitive Electricity Markets

1650 words - 7 pages -sided closed auction, the contingency hourly market for Next day having Continuous Trading and the Intra-day continuous Trading for the same day which are all categorized under Spot markets), Term-Ahead Market and Renewable Energy Certificates (including both Solar and Non-Solar). Spot Electricity price in a competitive power market is determined by the intersection of total demand curve (constructed from aggregated demand bids) and total supply

Derivative Trading

520 words - 2 pages their trading volume, and hence would contribute develop the financial system and the macro economy. Also, derivatives trading may make a complete the capital market. If, in a market, there is an information asymmetry or market friction, then arbitrage strategies using derivatives give a much opportunity to get profit and hence discover the fair price of product. Therefore it helps to capture the information that is not easily available and hence

Similar Essays

Effects Of Taxation On High Frequency Trading

650 words - 3 pages -located servers on the exchanges. Also, high frequency traders tend to not carry trades across trading days, i.e. they typically have flat positions at the end of the trading day. STRATEGIES The rise of high frequency trading in developed markets has virtually phased out floor trading in the trading pit of major exchanges, which had long been the image conjured whenever a stock exchange was mentioned. There are now only about a dozen firms that

High Frequency Trading Essay

792 words - 4 pages HISTORY High frequency trading have a root in the 17th century , Rothschilds used pigeons to carry the oversea information of securities to achieve arbitrage faster than their competitor of stock price differences across national borders using carrier pigeons to relay information before their competitors . They also used the running man, the carriers horse riding and tiker tape machines for the information exchange . Now a day, The computer

The Effect Of Csi 300 Index Futures Trading On The Chinese Stock Market

989 words - 4 pages hence could stabilize a volatile market. The CSI 300 futures adopted the weighted average daily settlement procedure. Such settlement procedure prolongs the period over which arbitrageurs can reverse their arbitrage portfolios, and thus helps reduce expiration day effects. However, as market grows, the effect of arbitrageurs also grows. Specifically, institutional investor which are possible key players in arbitrage trading concentrate on

High Frequency Trading Essay

2262 words - 10 pages . Next on is the high message rates and speed connections in HFT which relates to the response speed for market order entry , orders quotation and speed for cancellation. 1.2 High Frequency Trader’s Strategies High Frequency Traders uses various strategy when performing HFT in the market. Such as for arbitrage strategies, directional event based strategies, automated market trading and liquidity detection strategies. First of all, the