Securities Trading Profit, Takings Can Still Be Had Today

Day trading most commonly refers to the practice of buying and selling stocks during the day so that at the end of the day you don’t hold any shares overnight; you sell as many shares as you buy. You make money on the difference between the purchase and sales prices.The main motivation for this style of trading is to make money every day so you don’t sit on the shares , plus of course you eliminate the risk that the shares go down in value overnight. the motivation of this style of trading is to reduce the risk of holding a position overnight where the open price may have significantly changed from the previous day’s closing price.NASDAQ defined day trading by saying somebody is a Daytrader if he makes more than four buy and sell orders over a five-day period.

Before the year two thousand it wasn’t rare for some of the most prominent Daytraders to make more than 1,000,000 dollars in one day. There were many Daytrading Chatrooms where folk were “told” what to buy and when to get it. Some Chatrooms had more than five hundred members. And most Daytraders, it is guestimated as high as 99%, lost their shirt. One reason they lost their shirt is often because they could trade on Margin. Trading on Margin implies the agent which executes your trades will give you up to five times your investment. So if you had $10,000 in your trading account you might in a few cases trade with $50,000. Nevertheless if you lost on your trades, repayment was due straight away. Since the heady dot com days of the year 2k DayTrading has gone out of favor and out of range.

Most brokerage firms have gone under or have consolidated, and staff has been reduced in the remaining firms by about 80%. Trades that used to cost $35 to execute can now be had for as low as $4.-Initially it happened because President Bush talked the economy down and Mr Greenspan kept on raising the interest rate to such a level that all optimism disappeared from the Market. Up until this time like clockwork 2 or 3 days a week there were Stocks, mainly Internet Stocks, that would rise more than 30% early in the morning and then fall the same amount five minutes before closing so people could take profit. If you were on the ball you could make a lot of money as a DayTrader.

You might also lose serious cash. Those days no longer exist. It is extremely rare to see stocks alter more than 30 percent in a single day so that the profitability first off isn’t as great, and the facility to catch a proportion of the rise in the cost of a stock in addition has reduced. A primary reason is also that Web Stocks which were fully unrealistically priced are not unrealistically priced and as an interesting point have risen far less than any other sort of Stock. A different reason is that there are only a few IPO’s and even Google’s IPO didn’t take off for some time. If it wasn’t for the impressive performance of Google, Net Stocks lost more than 8% in 2005. Even Ebay lost more than a quarter of its’ worth.

Even Ebay lost more than a quarter of its value. However, if you are shrewd, you can still make money as a DayTrader but it ain’t easy. What do you think happens when a company invents a car that runs on water? If you could get news about this company very early you could make a lot of money. Not many people know that you can trade the NASDAQ Stock Market as early as 6 AM. So if you are a Stock Market News Hound and like to get up really early in the morning and have nerves of steel you could buy the stock at 6 AM and sell it at 9.29 AM to everybody else starting a regular trading day. This will not happen very often, the fact that there is spectacular news. But if you are patient it may happen once a month.

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