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Stock market investment

Author: Rohit Kasliwal
by Rohit Kasliwal
Posted: Dec 25, 2023

There was a time years ago when the only people able to trade actively in the stock market were those working for large financial institutions, brokerages, and trading houses. The arrival of online trading, along with instantaneous dissemination of news, have leveled the playing—or should we say trading—field. The easy-to-use trading apps and 0% commissions of services like Robinhood, TD Ameritrade, and Charles Schwab have made it easier than ever for retail investors to attempt to trade like the pros.

Day trading can turn into a lucrative career (as long as you do it properly). But it can be challenging for novices—especially those who don't have a well-planned strategy. And be aware that even the most seasoned day traders can hit rough patches and experience losses.So, what exactly is day trading, and how does it work?

KEY TAKEAWAYS
  • Day traders buy and sell stocks or other assets during the trading day in order to profit from the rapid fluctuations in prices.
  • Day trading employs a wide variety of techniques and strategies to capitalize on these perceived market inefficiencies.
  • Day trading is often informed by technical analysis of price movements and requires a high degree of self-discipline and objectivity. The Basics of Day Trading

    Day trading means buying and selling a batch of securities within a day, or even within seconds. It has nothing to do with investing in the traditional sense. It is exploiting the inevitable up-and-down price movements that occur during a trading session.

    Day trading is most common in the stock markets and on the foreign exchange (forex) where currencies are traded.

    Day traders are typically well-educated in the minutia of trading and tend to be well funded. Many of them add an additional level of risk by using leverage to increase the size of their stakes.

    Day traders are attuned to events that cause short-term market moves. Trading based on the news is one popular technique. Scheduled announcements such as the release of economic statistics, corporate earnings, or interest rate announcements are subject to market expectations and market psychology. That is, markets react when those expectations are not met or are exceeded—usually with sudden, significant moves which can greatly benefit day traders.

About the Author

I am a stock market trader and investor. i start my trading journey in 2018

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Author: Rohit Kasliwal

Rohit Kasliwal

Member since: Dec 22, 2023
Published articles: 2

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