If you like working with other people's money, you might want to trade stocks every day for a living. This kind of trading can only be done during the day. From the time the stock market opens at 9 am until it closes at 4 pm, you can do a lot of trading. Or maybe you want to trade stocks every day for a living with your own money. If you lose it, you'll only have yourself to blame. But it might also be a good way to see your money grow. Here is a simple explanation of what day trading is all about. Maybe you like it, maybe you don't. Only you can decide.
What is Day Trading?
When you day trade for a living, you buy or sell in the markets with the goal of getting back to even before the end of the day. When a trader does day trading for a living, he or she usually trades many times a day to try to make a few points per trade. At the end of the day, he or she will close out all of their positions. The goal of the day is to make money from price changes that happen within a single trading day. Day traders don't hold positions overnight like investors do. Instead, they only hold them for a few seconds or minutes.
What it really means to trade every day.
People often get the meaning of the term "day trading" wrong. True day trading means you don't hold on to your stock positions past the current trading day. This means you shouldn't keep your stock overnight. This is the safest way to trade on a day-to-day basis, since you won't lose money if the stock market is closed because of news that could affect the prices of your stocks. There are a lot of "day traders" out there who are not very good at what they do. They are more like con artists who just want your money. Because they are greedy, they will hold on to your stock overnight, putting themselves in a position to lose all of their capital in a terrible way. The term "day trading" changes a little when it comes to trading currencies. Since currencies can be traded 24 hours a day, there can't really be any trading that happens overnight. With stop losses that can be turned on at any time, you can keep positions open for more than a day.
There are a few different kinds of day traders today, and they can be broken down into a few different styles.
Scalpers: This type of day trader buys and sells a lot of stocks quickly and over and over again within minutes or seconds. The goal here is to make a small profit per share on each trade while keeping the risk as low as possible.
Momentum Traders: This type of day trader looks for stocks that move in a certain way during the day and trades them, hoping to buy them at the bottom and sell them at the top.
There are no overnight risks when you trade for a living during the day. Since trades are closed before the end of the trading day, news and events that affect the opening prices of the next trading day don't affect your client's portfolio. When you make a living day trading, you have more control over your clients' money because the margin requirements are low and their trades are closed on the same market day. If your client uses this increased leverage wisely, it can help them make more money.
