Day Trading is entering the market, making quick trades and exiting the market, sometimes several times in a day, and usually ending your trading, or selling of your stocks or position by the close of the bell.
This means you make your money for that day and you remove yourself from the market or from any risk by the end of trading day and you start afresh the following day, never leaving yourself vulnerable at the hands of the volatile stock market throughout the night.
This point and more are some of the reasons why so many people want to go into day trading. The pull to do day trading is strong in deed. If you can be successful at it, there is no better, profitable, more fulfilling, time well spent job you could ever have.
But let no one fool you the risks are high, and there are many pitfalls. I think the stock market is more volatile today than at any other time in history. Stock market segments can rapidly and without warning at a moments notice, making some people millions and others bankrupted. The new and inexperienced trader will quickly learn that day trading or trading stock for a living is not for the very emotional, or faint of heart, or the novice.
It is important to note that trading and more specifically internet day trading is risky business, and you should never expose money you can't afford to lose. That I think is your number one rule of trading. Remember that they are power brokers in Wall Street that have at their disposal millions of dollars, they are more knowledgeable than you, and they have more experience than you, these guys are the best traders in the world, and to a large degree they control the market, they are the ones that set the odds and they do not like to lose their money not even a cent. To a large degree the system is rigged and often times geared towards your failure. These Wall Street power brokers make their money at the expense of the investing public, and the small fries like you and me. Rule number two is to recognize this fact.
But if you have the knowledge and experience you can beat these power brokers at their own game, or at least ride the wave that they create. The third point is to know where to look for these waves, when to get on the wave, and when to get off.
Trading online is so popular now because never before in history can your everyday average person, use very little start up capital and create enormous wealth and financial independence, and this is a real big deal to most people drawn to day trading online.
Tim Nelson has been writing articles showing people how to trade successfully online for over 8 years. His latest sites Trundle Bed Frame and Trundle Beds For Kids are not exactly about trading, but it is a helpful resource if you have kids in your life. A Healthy Kid Is A Well Rested Kid.
Article Source: http://EzineArticles.com/?expert=Timmy_I_Nelson
Sabtu, 20 Maret 2010
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