Stock Markets and Day Trading

stock market trading stock trader

Day trading in the stock market is the buying and selling of stock in such a way that at the end of each day you have no holdings!

That is what ever you bought that day you sold before the end of the day. This is the pure definition and may not always be either possible or feasible!

There may be times when you may either accidentally or on purpose find yourself holding over night.

If you do this more often than not you become a short time trader or if you hold even longer you become an investor!

Day traders rapidly buy and sell stocks throughout the day in the hope that their stocks will continue climbing or falling in value for the seconds, minutes to hours they own the stock, allowing them to lock in quick profits.

Most individual investors do not have the wealth, the time, or the temperament to make money and to sustain the devastating losses that day trading can bring.

The difference between investing and day trading is that when investing you are betting on the company but in day trading you are simply playing against other day traders and could care less about the company or even what it does!

Consider Day Trading like a war, where you are against every other person in the market …

Every profit you make is on the back of someone else’s losses!

Before you start day trading, take an amount of money and pour lighter fluid all over it and then strike a match!

Don’t burn your money just yet …

Stock Market traders market maker pic1 450x254

But stand there and always remember that at any given time, when you are day trading for a living, you are risking your money and it may be in as much risk.

This analogy is fairly accurate and if that is really bothering you …

Then perhaps you might consider another line of work …

Because I don’t know any day traders that haven’t seen their money go up in a puff of smoke during market hours!