Abhishek is an expert at Online Trading and he has got some great Trading Secrets up his sleeves! Download his FREE 81 Pages Ebook, "Online Stock Trading Made Easy!" from his website http://www.Trading-Masters.com/766/index.htm . Only limited Free Copies available.
One can hear terms like currency, trade, foreign exchange, stock and so on, constantly being thrown around in any conversation revolving round business and trade! While some definitions are easy to grasp (currency trading, foreign exchange, etc.), others can be quite defeating! It is not possible to explain the entire trading world in a small article. So, we shall just stick to a detailed commentary on the latest concept called "day trading".
There are many features of day trading, and they are listed below--
(1) The term, "trade" here, concerns currencies, stocks and stock options, plus contracts such as commodity futures and equity index futures.
When the above-mentioned investments and securities are bought and sold, all within the same day, the process is termed as "day trading".
(2) Unlike "swing trading" where the same stocks are maintained for a couple of days more, these stocks are disposed off during the same day. These securities are not even held overnight; that is why the name, day trading.
(3) The investor need not worry about the currencies used in different parts of the world. FOREX is there to help out. Since this market is kept open for 24 hours, trading can take place any time of the day or at nighttime, any time during the week.
(4) There is no rule (uptick rule) that states that it is as easy to sell currencies as it is to buy them.
(5) Currencies are more liquid, always on the go. They are simpler to handle as they are fewer in number than stocks. Thus, currency day trading is simpler.
(6) An investor who cannot afford to put in a capital of more than $25,000 (this is the minimum requirement for day trading), can go in for currency trading. This demands a nominal amount of just a few hundred dollars. With this, the trader can activate a mini account with FOREX.
(7) The intraday margin for stock trading is 4:1. So these traders can juggle around with $100,000 worth of stock by just investing $25,000. In contrast, currency trading (also known as short-term trading) has a large margin of 50:1. Thus, the investor can use $25,000 or even less to play with stock worth $1,250,000.
(8) This kind of trading demands that an investor purchase a minimum of 1000 shares concerning any particular stock, on any particular day. Adequate capital is therefore a necessity. Even a newcomer would be well advised to make his/her entry with $25,000, not less. Of course, despite this big investment, there are no safeguards against unseen risks.
(9) A seasoned veteran knows how to plan his investment, what strategies he/she is going to use and whether he/she is willing to face the risks or not. Dependent on these, he/she charts out how much of leverage he/she can use. He/She is also aware of how to reduce probable losses.
(10) It is important that traders/investors involved in trading remain objective about the whole business. They can only follow the current market trends and go along with the flow. They are advised to go in for popular and high-volume stocks, since they they can be easily disposed off at the end of the trading day.
(11) It is a business of "risks". The investor may gain $50,000 to a million in one day, or lose his/her capital totally! No one can predict market fluctuations. It is up to the investor's keen sense of business to decide when he/she wants to hold or sell his/her stock.
(12) To conclude, day trading proves "lucky" only if time is taken out to research market trends, utilize strategies wisely and make sharp decisions.
- Related Videos
- Related Articles
- Ask / Related Q&A
- 12 Vital Features Of Day Trading
- Day Trading Blogs - 12 Features Of An Excellent Blog Day Trading Blogs - 12 Features Of An Excellent Blog
- 5 Features Of Online Day Trading
- Trading Software Forex Day Trading
- Day Trading Penny Stocks Newsletter - a Doubling Stocks Review
- Automated Forex Day Trading – Advantages of Using Automated Forex Trading Software
- The Day Trade Forex System: How to Choose An Online Forex Brokerage Firm
- Global Forex Trading - 16 "Dynamic" Features Of Global Forex Trading!
Japanese Candle Charting Opens Doors of Understanding
By: William Kurtz | 10/07/2009The "bar chart" method of financial price display is fine as far as it goes, but it has been superseded by the Japanese Candlestick method, which uses the Candlesticks as the base. It then goes on further so as to display the area between the opening price and the closing price as a cylinder, left white if the close is higher than the open and filled in black if the close is less than the open. Simple, but highly effective and revealing.
You Can Now Make Good Stock Investments - Penny Stock Fortunes
By: Bryan Burbank | 10/07/2009Penny stocks are a great way that you can make money in the stock market but it is important that you learn how they work. There are many advantages to investing your money in the stock market because over the long haul it has been proven that you will come out ahead. The benefits to investing in penny stocks are that you will be able to maximize profits because the cost of each share is so low. You will be able to purchase a large amount of penny stocks for a small price, so when the price pe
You Can Easily Get Rich Trading Penny Stocks
By: Bryan Burbank | 10/07/2009Many people are looking for ways to invest their money and now because the housing market is bad, many people are finding that penny stocks can be good for them. The best part about investing in penny stocks is that you can make a lot of money with a small investment. You have a lot of leverage because you are able to buy a large amount of shares with a small amount of money. What this does for you is when the price per share goes up a small amount you make a great profit. It is important tha
How to Have a Penny Stock Fortune - Tips to Make Money Investing in Penny Stocks
By: Bryan Burbank | 10/07/2009If you are looking for a great investment in you may want to consider buying and selling penny stocks. There are many advantages to trading in these types of securities because you get a lot bang for your buck. Sometimes it is difficult to be positive when we see the stock market at such low levels. You must realize that over time the stock market is one of the best things to invest your money in. One way that you can maximize your profits is to use a penny stocks because they allow you to buy m
Beware of 'bonus rates on saving accounts'
By: Sam Gooch | 10/07/2009Those Britons on the search for a new savings account are being advised to do so with care, it has been revealed. Careful consideration should be taken when selecting a savings account, it has been suggested.
You Can Now Profit With Trading Penny Stocks
By: Bryan Burbank | 10/07/2009If you are looking to make money now than you need to take advantage of penny stock day traders. There are so many great advantages to investing in the stock market and even during bad economic times you can profit. The most important thing that you do is get the best advice when investing in penny stocks. There are many publications that specialize in buying and selling these types of investments and this can benefit you because to make money you need to have the knowledge. If you have look at
Learn How to Find the Best Penny Stock Investments
By: Bryan Burbank | 09/07/2009Many people like to invest in the stock market so that they can build a nest egg for the future. If you are a more risky type person then you may want to look into buying and selling Penny stocks. Many people have made a fortune with these type of stocks because you can purchase a large amount for a small price and the advantage is if the stock goes up just a small amount, because you have so many shares. You make a great profit. It is always best to get as much advice as possible when buying
Find the Best Penny Stocks - Invest in the Right Penny Stocks to Make Money
By: Bryan Burbank | 09/07/2009When looking for great stocks to invest in you want to consider the opportunities that are available in penny stocks. If investing in penny stocks you need to make sure that you understand how these type of investments work before you jump in. There is a lot of money to be made when you buy inexpensive stocks and the advantage is that you can own a lot of shares for a small amount of money. You make money because the stock rises just a fraction and with having so many shares, your investment p
Timeshare - What It Truly Means
By: Abhishek Agarwal | 17/02/2009 | Vacation RentalsIt's a buzzword, especially among the business community, but what about you? Do you know what this popular term"TIMESHARE" means
Timeshare Rentals - Available Options Revealed
By: Abhishek Agarwal | 17/02/2009 | Vacation RentalsTimeshare rental is a very affordable means of obtaining accommodation for many individuals who would otherwise find it difficult to do so, let's examine the various options available.
Timeshare Presentations - How To Survive Them
By: Abhishek Agarwal | 17/02/2009 | Vacation RentalsIt's never easy to survive a timeshare presentation if you are not mentally prepared for it, lets find out what an innocent free gift offer invitation could possibly cost you.
Owning Timeshares - Advantages And Disadvantages
By: Abhishek Agarwal | 17/02/2009 | Vacation RentalsNothing is truly perfect in life, almost everything that comes with a positive side also brings with it a good set of disadvantages, timeshare ownership is not exempted from this rule. Why? Continue reading to find out.
Trading Your Trendwest Timeshare - How To Get The Most Of It
By: Abhishek Agarwal | 17/02/2009 | Vacation RentalsHow do you ensure that you get the best out of your Trendwest timeshare property sell? Lets focus on some of the issues you need to consider when that time comes.
Timeshare Benefits - Get An Unsurpassed Vacations At Hilton
By: Abhishek Agarwal | 17/02/2009 | Vacation RentalsTimeshare offers vacationers and travelers alike the best opportunity of being accommodated in one of the planets top class and well-liked resorts, the Hilton international chain of hotels.
Your Timeshare Sale - Tips To Derive Maximum Benefits From It
By: Abhishek Agarwal | 17/02/2009 | Vacation RentalsSo you purchased a timeshare property, well, that was thoughtful of you, but then have you figured out how easy or difficult it could be to sale off your property after you are done with it. Let's find out.
Florida Timeshare Property - What Makes It A Paradise
By: Abhishek Agarwal | 17/02/2009 | Vacation RentalsIt's nicknamed the Sunshine State and true to the name are the attributes that make Florida's timeshare property an earthly paradise of sorts. Why is this so?