A stockbroker that concentrates on speed and order execution - unlike a full-service broker that focuses on research and advice. Day traders could trade their markets directly via the various exchanges, but this would require a trading account with each exchange, so it is more efficient and easier to use a day trading brokerage. In contrast to traditional investors who usually … [Read more...]
Day trading and Individuals
The term day trading refers to the practice of buying and selling financial instruments. However it should be noted that it should be done within the same trading day such that all the positions are usually closed before closing of the market in the trading day. People who practice or participate in this type of trading are called day traders. A day trader actively searches … [Read more...]
Day trading Techniques
There are six common basic strategies by which day traders attempt to make a profit: 1. Trend following Trend following, a strategy used in all trading time frames, assumes that stocks which have been rising steadily will continue to rise, and vice versa. The trend follower buys a stock which has been rising, or short-sells a falling stock, in the expectation that the trend … [Read more...]
What Is Active Trading?
Trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions are usually closed before the market close for the trading day. Traders that participate in day trading are called active traders or day traders. Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a … [Read more...]
Beginners should choose Forex Trading over Stock Trading
There is significant differences between Forex trading and stocks trading. Forex trading itself has several advantages over stocks trading and is ideal for the beginner and individual small investors. 1. Low Transaction Costs There are no hidden fees for forex brokers as they are not paid by the traditional commission based fees. The fee paid to the forex broker is … [Read more...]