Strategies of Day Trading Essay

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Day trading is a fairly new development of the stock market. Day trading refers to buying and selling a stock in the same day. Day traders normally trade common stocks, currencies, or stock options. Day trading is normally done by professional investors. However, it has also become a popular way to make money at home for others.

In 1975, Wall Street ended the set fee on stock trades. Day trading then became a reality to investors. Before this, traders collected their order information with brokers using ticker tape. The Securities and Exchange Commission decided that fixed commissions are legal in 1975. Legalizing fixed commissions marked the beginning of discount brokers. Short term trading became profitable. This is how day trading
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Day traders also must have money or capital. In order to make money from the trade, you must have money to trade. Traders sometimes borrow money to use in the market. This is called leverage. Day traders need to have discipline with the money they trade. Day trading with discipline means that you should never use money that you cannot afford to loose or act impulsively from emotions. Day traders should also have computer with a high speed Internet connection.
U.S. Securities and Exchange Commission Reports of Examinations of day trading broker dealers.
Successful Forex Trading Learn to trade Forex stocks.
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Six types of strategies are used for day trading. The first is Trends Following. This strategy is buying stocks on the on the rise or short sell if the stock is declining. Range Trading is a strategy of buying stocks at low prices and selling when they rise. News Strategy is the most common of the strategies. Scalping is a strategy where traders liquidate and establish a good position. Finally, the Short Stock Strategy assumes that a purchased stock is about to rise. Traders borrow stocks from brokers and resell. They hope by doing this prices will come down and then they will buy again.
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The cost associated with day trading can be expensive. A day trader should use a direct access broker instead of a retail

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