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...

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