Article Directory

Free Article Directory - Submit Your Articles
Search:

Categories:

Day Trading The Extreme Sport Of Investing



by: Mikahamilton
Total views: 1
Word Count: 504

The rewards are incredible for those that do it right, but for those who make enough mistakes it will take everything they have and still not be satisfied. Day trading is the practice of buying and selling securities and other financial options. These transactions are usually completed within the same day. Options that are typically traded include stocks, stock options and currencies. For the most part, day traders focus only on short term trading and can consist of several trades in a single day. Because of the high volume in trades day traders are given large discounts through trading brokerages. Day trading gained momentum and notoriety during the "Tech Bubble" a period of bull market activity from 1997-2000. During this time even the most inexperienced and casual of traders were making large profits. Usually a day trader would have a certain amount of money and would basically borrow the rest on margin. During this time most day traders didn't even find it necessary to have a solid strategy. "Buy in the morning and sell in the afternoon" was the basic game plan for many. Reality hit the market in March of 2000. Since most the day traders at the time were inexperienced, they began to lose large sums of money quicker then it was gained. Most of the people relying on day trading as a source of income ended up completely broke and in some cases destitute. Day trading is so risky that it has been likened to gambling. Compared to the number of day traders, very few are able to make consistent profits. The primary factor that contributes to such high risk is that the funds to trade are borrowed on margin. Due to this fact money management skills are a necessity. An experienced day trader knows that sometimes they can't afford to wait for the stock to rise again, if the market fails to meet the expectations, quick thinking is needed in order to avoid higher losses. A very small percentage of those who consider themselves day traders ever actually see a profit. The US Securities and Exchange Commission (SEC) advises against day trading due to the fact that most individuals do not have the wealth or ability to not only make money, but to also survive the losses that most traders will face. Day Trading is not the same as investing, an inexperienced person may look at the processes and feel that it is just short term investing, but that is an incorrect view and is a leading cause of failure in day trading. Despite the promises of quick and "easy" money, day trading is a very stressful job. It requires dedication and doesn't allow for a moments rest when trading. In this field a few seconds can make all the difference. Borrowing money to buy stocks is not recommended. Persons truly interested in risky investment should do so under the guidance and assistance of trained professionals. The risk should be spread out so as to minimize losses.

About the Author

Mika Hamilton runs a website offering free investment tips and strategies for people looking to get started in the investment world. http://www.Global-Investment-Institute.com

View PDF | Print View
Rating: Not yet rated

Comments
No comments posted.
Add Comment
You do not have permission to comment. If you log in, you may be able to comment.
Next Article - Stock Exchanges - An Introduction
Previous Article - The Fall of the Bond Markets

More Related Articles In This Category

1: What are Bull Markets and Bear Markets?
2: What Causes Stock Prices To Go Up And Down?
3: Option Trading - As Risky As The Reputation?...
4: Online Trading; Why I Hate Economists!
5: Online Stock Trading - Is It Right For You?...
6: Is a Financial Market Last Straw Event on the Way?
7: Who Sets a Stock's Price?
8: Compound Stock Earnings Programs - Caveat Investor
9: Stock Exchanges - An Introduction
10: Day Trading The Extreme Sport Of Investing
11: The Fall of the Bond Markets
12: For Stock, Futures and Forex Traders The Biggest Battle To Succeed Is Within, But Why?
13: Do You Run With the Stock Market Herd?
14: Ethanol Producing Companies as Stock Investments
15: Stock Trading Made Too Easy
16: New Bull Market Surge Underway?
17: Tips For Stock Market Trading- Beginners' Guide
18: What's The Difference Between Technical and Fundamental Investing?
19: What is Short Selling and How to Benefit From It?
20: Setting Specific Investing Goals
21: There Is No Place For Emotions In The Stock Market
22: You Will Never Make Money Trading Stocks, Futures Or Forex Part 4
23: Is Insider Trading Illegal?
24: Painful First Quarter for World Financial Markets
25: You Can Be A Stock Market Investor

For WebMasters


Link This Article - HTML Code -
Link This Article - BBcode -

Copy This HTML Code To Put This Article In Your Web Site.

Tags:
Article URL : Day Trading The Extreme Sport Of Investing
Article Category : Stock Market Investing
Article Author : Mikahamilton



Main Menu

Example Pages

Sponsers

Article Directory