Day Trading: Profiting from Short-Term Price Volatility
Day trading is an investment strategy that involves the buying and selling of, say stock options or currencies, all in a single trading day. In simple words, it is a proactive approach towards taking profits by short-term price movements and volatility in the market. Day trading is very different from long-term investing because the trader does not hold positions overnight-low exposure to after-hours market risks.
Much of day trading is established upon technical analysis, fast charting decisions, and effective risk management. Most traders look up market news, earnings report or economic data to analyze short-term trends, but usually, they depend on price patterns and charts, indicators or signals known as moving averages, relative strength index, volume analysis to make forecast price movements.
Most day traders use day trading strategies: scalping takes small but frequent profits; or momentum trading, which follows and profits from prices that move strongly in one direction. Tools like algorithmic trading platforms and real-time market data allow one to remain competitive in the fast-moving world of day trading.
Fortunately, day trading is very challenging. It requires tremendous concentration, intense discipline and the ability to absorb, if not overcome, emotional stress. High transaction cost with imposing losses tends to put off entry-level traders from trying day trading. Day trading may be expected to bring fast gains. However, such an expectation is not for everybody, and most turn out to fail at day trading requiring vast knowledge of the market, big capital in the bank, and risk-tolerant.
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~ Nesaty
Day Trading: Profiting from Short-Term Price Volatility is a great content.
Well that's just for skilled traders alone ifnot just stay off.