Other Free Encyclopedias » Online Encyclopedia » Encyclopedia - Featured Articles » Featured Articles: 0 Car Finance - What Does 0% Car Finance Mean to Black Tv Stands

Day Stock Trading - About Day Stock Trading - How day stock trading works, Benefits of day stock trading

Pros and Cons to Day Stock Trading

money traders stocks potential

Day stock trading is the practice of buying and selling stocks quickly throughout the day, sometimes even selling one stock within minutes of purchasing it. Day traders make their money through leverage, which means they have the potential to make very quick profits, although they can lose their money just as quickly.

How day stock trading works

Day traders basically spend their entire day sitting in front of a computer screen. They spend every moment watching the markets because a split second can be the difference between a profit and a loss. People who practice day trading are constantly looking for market patterns, and they are ready to purchase or sell a stock at just a moment’s notice. The smallest change in the market can push them to buy or sell. It is not uncommon for people in day trading to purchase a stock one minute, watch the price increase a few cents the next, and then sell it just a couple of minutes after they purchased it. Most day traders do not own stocks overnight because there is huge potential for stock prices to drop overnight as the result of an unexpected event.

Day traders rely heavily on their instincts and usually buy stocks on margin. This means they borrow money to purchase their stocks, which is an extremely risky business.

Benefits of day stock trading

There really is only one obvious benefit of day trading, and that is the potential to make a lot of money in a very short amount of time. People who can easily recognize market trends and respond at the drop of a hat are ideal for day trading, but not everyone has the skills necessary to do it.

Disadvantages of day trading

The number one problem with day trading is the risk, and risk is precisely the reason day traders can make a lot of money in a short amount of time. However, they can lose that money just as quickly. Also, since day traders usually trade stocks using someone else’s money, they have the potential to lose everything and acquire a huge debt in the process.

Day trading can also be very stressful and draining. It takes a quick eye and a lot of skill because it can be very difficult to watch dozens of ticker quotes all at the same time.

Day stock trading pitfalls

There are also a few pitfalls that anyone considering a job in day trading should think about. First of all, do not believe everything you hear. Many of the so-called “hot tips” are just from companies wanting to benefit from the stock increase caused by day traders snapping up their stock, so every purchase should be considered carefully. Also many “experts” on day trading are not always objective, so think twice before taking advice about a trade.

Federal Debt Consolidation - About Federal Debt Consolidation Loans - Federal Family Education Loan, The Direct Loan Program [next] [back] Everett Homes For Sale - About Buying Homes for Sale in Everett, Washington - About the City of Everett, Neighborhoods in Everett, Everett Homes for Sale

User Comments

Your email address will be altered so spam harvesting bots can't read it easily.
Hide my email completely instead?

Cancel or

Vote down Vote up

6 months ago


This is Shweta Dubey Freelancer services provider. Current working for some client who are interested in buying paid articles related to

Sports betting websites (if you allow)

So, let me know which theme article with text link you can place on your website and what will the price for that.

Other than that being a freelancer I provided these:

• Content writing,
• SEO,
• Media Buying,
• Facebook Paid campaigns
• Google Adwords campaigns,

I have 10 years experience in this field. Currently I am searching for some more clients. Please let me know if you are interested in my services.
I look forward to hearing from you.

Looking for a good business terms with you.

Thanks and Regards
SEO, SMO, Content writing and Web Designing
Service Provider
Contact +919993036692
Skype: seo1seo1