ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
25.07.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


Day Trading Against System Trading

Author: John Porter Author Ranking Gold | Posted: 21-08-2007 | Comments: 0 | Views: 8 | Rating:  (50) Article Popularity - Green (?) Got a Question? Ask.
Sign Up Now!

What a day trader does is he restricts his investments to a day. This means that whatever he buys on the day he sells on the same day. The philosophy is there is hardly any chance of a stocks hitting rock bottom over the space of a day.

So even if there are losses, it will be marginal. Of course, the profits are also limited since stocks get hardly the time to gain value in just a day. Of course there are exceptions when stocks plummet or shoot-up in hours. But those are generally irregularities.

However there are a few issues with day trading. First of all, when someone invests on the stock market there is generally a hope for high returns. Day trading runs counter to that philosophy. Of course you can make high profits even in day trading but for that you will need huge capital where you can pump in money to buy rising stocks, and then sell them at the end of the day when the stocks have gone higher. It is the number of stocks you buy that makes the most difference and not the change in the price of the stock.

Also day traders discount the history and performance of a stock. When a day trader buys stock in a particular company, he will try to buy the ones which have shown profit in the recent past. But it might happen that on the day he bought the stock it showed a marginal decrease.

There is every promise for the stock to again gain momentum and go up. But the day trader has to sell the stock cause as a day trader you cannot hold on to any stock at the end of the day. So while you were almost certain of profit over a period of time, you end up making a loss just because of the weird way day trading works.

The basics of system trading is quite simple. What you need to do is fix certain parameters on when to buy a stock and when to let it go. It is like a guide book that you follow by the word. Now these parameters should be made based on a lot of research and inputs from successful traders.

Once you have it ready, your emotions play little role in the trading. You now know exactly when to buy and when to sell. And this is where system trading brings some sense to the erratic trading of amateurs who are into online trading.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Source: http://www.articlesbase.com/finance-articles/day-trading-against-system-trading-202135.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

Find more Online Trading and Online Trading info online. For Online trading related articles:http://www.online-trading101-fyi.info

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

How To Choose The Right Online Investing Strategy
By: Matt Ehrlin | 22/05/2008 | Investing
Picking the right strategy for online trading is one of the points of differentiation between successful traders and people who burn out abruptly. Picking the right online investing strategy for yourself is a matter of knowing yourself. Socrates maxim of "Know Thyself" applies more than you might think to trading.

Here's what the nets saw today...
By: Larry Swing | 02/11/2005 | Finance
We are still a little concerned about commodity pricing (coal and natural gas) as we are in a period of price consolidation, but the nets are starting to like energy exploration and mining stocks again in general...

Do you Know About Online Trading?
By: Subhash | 06/12/2006 | Finance
Online trading is simply a term that refers to the medium used to enter and execute trades. Online traders, which can include long term investors,

So You Think You Know Option Trading?
By: William Smith | 11/12/2006 | Finance
We all know that many opportunities exist in Option Trading today. Wherever you turn, someone is waiting to inform you of the tremendous profits to be realized within the stock and the futures markets.

Direct Access Stock Trading – an Overview
By: Praveen Ortec | 09/05/2007 | Investing
This article provides information about direct access stock trading. Know the procedure and practices involved in it and the merits of it. Find information about direct access stock brokers and the commissions charged by them.

Money Management – a Crucial Aspect of Trading
By: Mike Estrey | 25/06/2007 | Investing
It is crucial to consider money management when trading online, with particular focus on extreme events, reducing risks of wipeout and how much risk you should take overall. Ultimately, considering how much you are willing to risk and treating all potential trades the same way will assist you in making the right decisions

Online Stock Trading – What you Should Know
By: Markus Heitkoetter | 04/08/2007 | Investing
Online stock trading is the simplest and easiest method of buying and selling shares, and it can be done entirely from the comfort of your own home or office. Find out more on the intricacies of online stock trading in the following article.

Commodity Trading - Commodities In Your Portfolio
By: Amar Mahallati | 27/08/2007 | Non-Fiction
From roughly 1974 to 2004, the S&P 500 trended upward. In contrast, the CRB, or Commodity Research Bureau, trended down. However, many savvy investors continued to trade in commodities, with many doing very well. Why is this so?

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

Requirements of an online store
By: razk | 15-06-2008
what ar the technical requirements i need to concider for creating an online store

Is there a way to play Final Fantasy XI online ...with a (slim)PS2?
By: kygamer | 21-04-2008
Is there a way to play Final Fantasy XI online with a PS2(slim) being that it needs a 40G Hard Drive? If so, How?

What is the longest current bus route of King ...
By: Deckard | 18-04-2008
What is the longest current bus route of King County Metro?

Pl reply
By: deejay | 10-04-2008
I have ps2 console (U.S). Wat is the procedure to download a ps2 game and able to play in my console? pl help me...

DEAR SIRs i used 2 analoge modem from phoenix ...
By: elham | 05-04-2008
DEAR SIRs i used 2 analoge modem from phoenix contact company as leased line for tunneling application ,so on the cataloge they write you can use these modems for long distance till 20km but in practical it is working for 8km , what can i do for this problem?

My question is about Cabal Online
By: nono19155 | 02-04-2008
My question is about Cabal Online

Q&A Powered by:
Powered by Yedda 

Latest Finance Articles

Why Coming Out With A Dragon Is The Ultimate Objective When Entering The Den
By: Thomas Pretty | 25/07/2008
A look at some of the success stories form the BBC's Dragon's Den and how securing investment from these entrepreneurs is akin to securing a loan from the bank.

Choosing The Best Trading Books
By: Sharon Reid | 25/07/2008
Quality trading books all have certain qualities. If you're serious about making money from trading you need to read the best trading books available.

Renting Apartment - 3 Things To Note When Renting An Apartment
By: Cheow Yu Yuan | 25/07/2008
Are you looking for a suitable apartment to rent? When renting an apartment, it is very important for you to know every single detail in the contract that you are going to sign. This is because when you sign a lease, you are signing a legal document and will be bound to the terms and conditions stated within it.

Real Estate IRA Investment Basics
By: Jerry Glynn | 25/07/2008
Article discusses the history of real estate IRAs and how investors can utilize them.

Benefits of a Bad Credit Loan
By: Tom Tessin | 25/07/2008
People who fail to keep their expenses under control often end up falling deeper into debts. For such people, the ideal solution is to avail bad credit debt consolidation loan. These people need to look for debt consolidation counseling before applying for such type of loan. People under debts often consider...

Student Loans Consolidation Service - an Easier Way to Get Through College
By: Peter Barlow | 25/07/2008
Are you dreaming of pursuing college to have a better career in the future but your means are not enough to assist you get through it? No need to worry and keep up with that dream of yours. There is a student loans consolidation service that would help you make...

You Count On Your Bank, But The Bank Count On You Even More
By: Paul Dubsky | 25/07/2008
The bank count on you more than you count on them. A run on a bank is the last thing anybody wants. Liquidity is vital. Wheels have to keep turning. Cash is King.

Bad Credit? Loans Are Still Available For You!
By: James Copper | 25/07/2008
An article giving advice on getting finance if you have a bad credit history

More from John Porter

Management Courses Law And Administration Of Online Courses
By: John Porter | 06/11/2007 | Online Education
Articles discusses online education science and technology established institutes of the US.

The Right Lasik Surgeon
By: John Porter | 29/10/2007 | Non-Fiction
Articles discusses kinds of surgical procedures.

Online Day Trading: The Risks
By: John Porter | 29/10/2007 | Finance
Article discusses invests on the stock market.

Determine The Type Of Skin
By: John Porter | 29/08/2007 | Non-Fiction
This article discusses some of the types of remedial measures for curing acne.

Cosmetic Surgery---Enhance Your Appearance And Write Your Success Story
By: John Porter | 23/08/2007 | Non-Fiction
Article discusses maintain your appearance by various surgeries and make your look good.

How Safe Is Online Trading
By: John Porter | 21/08/2007 | Finance
Article discusses security has always been much debated when it comes online trading.

Considering Cosmetic Changes Of Your Nose? Learn About Different Types Of Rhynoplasty
By: John Porter | 21/08/2007 | Non-Fiction
Articles discusses more popularity as a cosmetic procedure.

An Introduction Of Debt Settlement
By: John Porter | 20/08/2007 | Non-Fiction
Articles discusses main objective of debt settlement.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below