Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.
There are two types of day traders - scalper and momentum traders. The scalper buys and trades stocks within minutes, whereas a momentum trader buy stocks that fluctuate from high to low during the day. But at the end of the day, the ultimate goal of a day trader is to buy stocks and sell them at the highest possible value.
A trader should be knowledgeable in paper trading and risk management. Traders keep themselves updated by reading stock exchange periodicals. It is essential for a day trader to absorb the relevant information completely and regularly. New York Stock Exchange and the National Association of Security Dealers impose minimum margin requirements for day traders.
A day trader's world is full of risk, where fortunes can change by the minute, depending on unpredictable market swings. Besides luck, the profit of a day trader depends upon how vigilant and fast they are. The trader's analytical, as well as risk management skills also determines success. The element of unpredictability is evident in every aspect of their work, ranging from holding positions on long trades that involve purchasing the stocks at a low rate and selling it later at a higher rate, to short selling that involves the reverse of long trades. This involves selling the stock at high rates in anticipation to compensate it when the prices fall, to speculating without being bothered with the fundamentals and technical aspects of the trade.
Characteristics Of A Day Trader
-Believe in their efforts and do not pay heed to rumors.
-They have a sharp analytical ability.
-They are strong-headed people, who are not affected by the prevalent market trends.
-They employ a mathematical approach.
-They work towards understanding the latest regulations related to trading fees and taxes.
-Day traders are not affected by the fluctuation of financial indicators such as NASDAQ and DOW JONES.
Anyone can become a day trader by opening a trading account with a brokerage company or a stock exchange or bank, provided it allows trading. You need to fulfill certain legal and commercial formalities, before initiating trades. You can become a day trader in any one of the following categories:
-Stock, bonds and securities.
-Foreign Exchange Currency
-Commodities - such as metals and food grains.
In order to be a successful day trader you need to be very cautious about every step you take, since a single mistake can turn successes into failures. You need to respond to liquidity and volatility quickly. Though day trading is a lucrative career, you need to keep in mind that you do not become an experienced day trader overnight. It requires time and rigorous practice. If you want to pursue day trading as a career, then you need to practice on a trading website to gain confidence in the application of new techniques and implement them in your career.
- Related Videos
- Related Articles
- Ask / Related Q&A
- Learn to be a Day Trader – not a Daily Trader
- Black Diamond Trader - The Black Diamond Trader Review
- Forex Day Trading - Brokers Love Day Traders for One Reason
- Day Trading - 4 Common Mistakes Traders Make
- Rollover Days: Essential Information for Any Trader
- Best Day Trading Stocks - How Day Trading Software Can Help You Choose The Best One?
- Day Trading Strategy - Learn Day Trading
- Day Trading – Using Intra Day Charts for Profit
Do you want to learn how to cut hair?
By: Paul Ingersole | 01/01/2010In addition to teaching you the various aspects of cutting hair for men, most barber schools offer much more. You should look for a curriculum that discusses customer relations, sanitation, barber shop safety, and small business management in case you decide to open up your own barber shop.
StudentScholarships.org - I am going to be an Actor
By: Drew Backley | 31/12/2009My dream job is acting, because I want the chance to inspire someone to experience the thrill of performing in front of a live audience. I want the chance to be to someone else what Angela Lansbury and Stephen Sondheim are to me—-the embodiment of talent.
StudentScholarships.org - A Career as a Journalist
By: Drew Backley | 31/12/2009In Journalism, I have already had a few achievements. I became Head Editor of my school newspapers my junior year in High School where I was the only junior in a class full of seniors. My senior year, I served as the Editor-in-Chief and I was awarded the "Star Award" (student of the year) from the Detroit Free Press in May 2005. For me, winning awards is not the easiest thing to accomplish.
StudentScholarships.org - It is all about Goal Setting
By: Drew Backley | 31/12/2009Goal setting has become a routine and practiced concept in human society. We are continually taught to set goals, to reach for the stars and to dream big. The idea of complete happiness and success seems to be directly connected only to the accomplishment of our most desired ambitions.
StudentScholarships.org - Choosing a Career as a Writer
By: Drew Backley | 31/12/2009To me, a writer can do whatever he or she desires, pristine or simply selfish in motive. If a writer is flamboyant, he or she can write a story about the glory of toilets. If a writer is a serious stooge, then he or she can write a story about the genocide in Sudan.
StudentScholarships.org - I want to be an Actress
By: Drew Backley | 31/12/2009For me, acting is living in a moment. The art of theater is to suspend a moment, and unearth everything that makes this particular moment real. It is the theater’s duty to take that moment and present it to the audience so that they can connect with the moment and get in touch with their own emotions.
StudentScholarships.org - My Ideal Job
By: Drew Backley | 31/12/2009My ideal job, one that I would dream for is simply this, to inspire, motivate, and equip servant leaders, to devastate this world with love. I want to take the world’s lies and replace them with the truth, the slothfulness into productivity, the anger into peace, and the hatred into love. I want my life to make a difference within this world. I do not want to sit back and enjoy a job with a good salary and benefits that adds up to nothing as far as real differences made
StudentScholarships.org - A Career in Film is my Dream
By: Drew Backley | 31/12/2009To create art through film has always been my dream, and although a tedious and painstaking process, in the end it appears to be worth all of the hard work applied to it.
Lean: Six Steps With Review Points
By: Tony Jacowski | 30/09/2008 | ManagementLean Six Sigma is a philosophy that aims at the improvement in value provision to the customer, improvement in process flows and elimination of waste. Lean deals with waste by shortening the time gap between the order and the shipment. The organization is based on six steps for continuous improvement. These steps are value, value stream, flow, pull, perfection and replication.
How to Research Your Career before Deciding on a Suitable One
By: Tony Jacowski | 30/09/2008 | CareersYou may need to conduct some research for selecting a career at different times during your life and for different reasons. It may be required when you need to pursue a career for the first time or when you are considering a career change.
Hoshin Planning: Making the Strategic Plan Work
By: Tony Jacowski | 30/09/2008 | ManagementIn the current business scenario, organizations strive towards exceeding the customer's expectations and achieving a competitive edge over rivals. This comes as an outcome of the long term planning, an achievable vision towards the goal and continuous improvement in the processes.
Career Moves For Older People
By: Tony Jacowski | 30/09/2008 | CareersPeople make career moves for various reasons and under various circumstances in their lives. When older people change their jobs of their own free-will, it is a pleasant experience for them; but when the circumstances of life force them to look for a new job, it may be a very painful experience.
How To Raise The Stakes To Get That Raise
By: Tony Jacowski | 30/09/2008 | CareersMany people don't know how to ask for a raise. The fact that you need more money to support your lifestyle is not reason enough.
The Advantages and Disadvantages of Making a Lateral Career Move
By: Tony Jacowski | 30/09/2008 | CareersConsciously or unconsciously, many of us wonder whether we have already found our dream job or have just settled for something in the absence of anything better. It is pretty much like a teen with the first flash of youthfulness looking for his or her soul mate.
How To Handle The First Month Of Your New Job
By: Tony Jacowski | 30/09/2008 | CareersWhile we all eagerly look forward to a fresh start in a new job, most of us are unwilling to find out how to conduct ourselves appropriately in a new workplace. It is not just about putting on a broad smile all the time or keeping our bosses in a good humor.
Cutting-Edge Methods Help Target Call Center Waste
By: Tony Jacowski | 30/09/2008 | ManagementThere are different activities undertaken in call centers; planning, call routing, after-call operations, research operations on unresolved calls, reporting and staff scheduling. The most important function is the handling of calls, inbound as well as outbound. This function is repeated a number of times throughout the day and needs lots of improvement.