Making Money Through Day Trading Online

[stockmkt]

Day trading refers to the buying and selling of financial instruments like currencies, stocks or futures contracts, on the same trading day. This type of stock investment involves a lot of risk. Day traders carry out day trading by purchasing and selling stocks rapidly on the same day.

Securing quick profits through day trading is based on the hope that the value of the stocks will continue to rise or fall in the short period when the stocks are held, before being sold. Some feel the traditional rule of settling the trade before the market closes, may go against the market wisdom of letting the profit run. However, this helps the day traders in avoiding the risk of price gaps. Price gap refers to the difference of price between the last close and the opening next day.

Profit making through day trading online:

Day trading can be very profitable due to the rapid returns. Traders willing to take high risks generate huge returns with day trading. Earning huge profits takes a couple or minutes or hours. The advancement in technology and electronic communication, especially the Internet, has contributed a lot to its popularity in recent years. Initially, day trading was limited to professional traders of financial firms. It used to be a marginal form of trading stocks for the elite group of private investors. Today, even casual traders indulge in day trading to make a profit. Popularity of the Internet has triggered off the swift flow of information, at a click of the mouse, making day trading all the more easier to execute.

Online day trading strategies for quick profit. These are five day trading strategies that every trader should keep in mind:

* Follow the trend: Usually, day traders assume that the steady rise in financial instruments will continue to do so and vice versa, in the case of a decline. All trading time frames use 'trend following'. Trend followers purchase a rising financial instrument or they sell the falling ones, short. This is done with the assumption that the trend will continue.

* Range trading: In this strategy, rising as well as falling stocks are brought near to the lowest identified price and sold, once it hits the upper range.

* Scalping: This strategy is also referred to as spread trading or quick trade. It involves the settling of trade within a few minutes or even seconds.

* Playing news: The playing news strategy is considered to be most popular in the realm of day traders. It involves the purchase of stocks that offer good returns and selling of stocks with bad returns. The implementation of this strategy provides a good opportunity for quick profits.

Despite of the profit making strategies and popularity, day trading is not easy. It involves huge risk factors and according to statistics, 80-90% of day traders lose money in day trading and only 20% gain. It is an expensive and stressful, full time job, but if you are disciplined, a quick decision maker and can maintain good risk and money management, then you have strong chances of earning profit by day trading online.


Article Author: Joseph Kenny
Article Source: Depositarticles.com

[Brent78]

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[James Anderson]

In contrarian trading, every trader will have his or her own little indicator, that tells him whether the time is right to purchase or sell products. This kind of signal comes in useful, because continuously analyzing each stock in the market gets tedious and laborious. For example, if you have decided to yourself that when 75 percent of the mutual fund (which has properties exceeding one billion dollars) starts buying stock is the indicator for you, then go ahead and follow that. That means it is time for you to sell.

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[alan.smith]

Very nice information.

Thanks for this information

[martina4520]

"Sorry,

I don't have enough knowledge about this matter.

i just suggest you should take help of any experience person or you also take

help of search engine to find it.

Best of Luck

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[JoeNJ]

Has anyone tried using an automated, robotic software program? I have seen one where you can plug in a symbol and it gives you how much you would have made and how many times it was traded over a period of time. I wanted to know what peoples success rate was. Thank you.