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The Basics Of Day Trading
Executive Summary About Day Trading By Amit Malhotra
Day trading, as the name suggests, means trading-buying and selling-the stocks on the same trading day. The trading positions, usually though not always, are closed before the market closes for the trading day.
Day trading is different from after- hours trading where the trading activity continues even after the regular marketing hours when the stock exchange closes.
Sellers and buyers who participate in day trading are called day traders. Although day trading evokes the image of a hectic trading activity in course of the trading day, it may not be so in actual practice. You may make several trades, say a dozen, in course of a trading day, or, you may limit yourself to just one trade.
In standard practice, traders usually tend to close their trading positions by the end of the same trading day. In any case your trading frequency depends entirely on your trading strategy for that particular day, or, your general trading style and outlook.
There are traders who focus on very short or short term trading. As said earlier, the number of trades you make on a trading day depends upon your trading style or trading strategies.
Profits and risks in day trading
Day trading may evoke the visions of gamblers gaming in casinos. There is, however, a marked difference between day trading and gambling.
Experienced and intuitive traders generate huge percentage of returns from day trading. Some stock traders manage to mint millions per year solely on the day trading.
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