Saturday, May 5, 2012

Day Trading Definition - What Does Day Trading Mean?

The trade deadline day, as the name suggests, is when an investor buys and sells stocks or otherinvestments, on a single day. All outstanding fees will be resolved before the market closes each day. Themain goal of a day trader, is to fast profits of stock price rises or falls during the day to make. This type ofinvestment has become very popular over the last decade and the popularity is growing day by day.

The Wikipedia definition of the trading day is "The purchase and sale of securities on the same day, often online, on the basis of small variations, the short-termprice." Day About.com 's definition of commerce is alittle different but has the same tone, "Day-Trading(trade and in general) is the buying and selling ofvarious financial instruments such as futures, options, currencies and actions aimed make a profit by the difference between the purchase price and sale price.Day trading is a little different than other types of negotiations, in which positions are rarely (if ever),instead of at night or in the market when the market isclosed. "

When buying and selling shares, a day trader usuallychoose a style that fits the particular investor. For example, some shares are held only a matter of seconds or minutes. This type of trading style is knownas a short-term trading. If the investor holds sharesduring the working day, then this style is as a swing orposition trading. Some day traders even combineinvestment styles, but most usually choose a style and stick with it.

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