Day Trading

Risky investors known as “day traders” generally buy and sell shares the same day as a way to make quick returns. In the past, only banks and financial companies who had access to market data and the various exchanges were the ones who could perform Day Trading. However, after the internet and once recent technology came into play, anyone who wanted to become an individual trader could directly access the same market data and exchanges to make a low cost, same-day trade on their own. Day Trading can be described as the buying and (subsequent) selling of a variety of financial instruments including stocks, currencies, futures and options. The goal is to make a profit from the disparity between the buying and selling price. Day Trades take place within the same day, therefore, there are no overnight or closing-time position requirements. Many Day Trading systems have flexibility positions that allow trades to be made as often as every couple of minutes to every couple of hours- making it possible to buy and sell stocks (or other financial instruments) easily several times in a single day. There are multiple styles of Day Trading methods, although most traders tend to stick to the one or two types that they are familiar with in effort to mitigate risk and decrease potential losses. Traders refer to stock indexes, currency exchange rates and commodities (such as gold and oil) to determine which type of trades will yield the highest returns on any given day.