Day Trading
Is Day Trading gambling? Lot of people think of it that way and for many it’s daily 9-5 job. There are different types of investors and traders for different markets. There is long term investing, there are swing traders – people who buy/sell stocks for a few days to weeks – and then there are day traders who buy and sell stocks multiple times in any given day.
Large hedge funds, banks and institutions that have day trading as part of their strategy to invest and make money for their clients. High Frequency Trading is nothing but Day Trading. Day traders are not concerned about what the company offers, their profits, or their CEO. They are looking for the stock to move in either direction – up or down. Volatile stocks work best for day trading. There are retail traders who have been doing this for years and are successful. There are also new participants in day trading that lose all their money while they are learning the ropes. Like any new endeavor, day trading is hard at the beginning and it remains that way if you are not disciplined.
Consistency is the key when is comes to doing anything in the stock market. If you’ve one good year where you made 100% profits, great. But if you lose 200% next year then you have set yourself back. It’s very important that you have solid plan for trading and follow it every single day. Start with small trades. Record your trade and study them at the end of the day. Print the charts and take notes. See the pattern and memorize what works.
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