Thursday, May 6, 2010

Day Trading

The term "day trading" is widely misused and abused term. Real day trading means not to remain in their positions in the stocks of the current trading day, in other words, no view at night. This is actually the safest way to do it day trading, because you are not exposed to potential losses that may occur when the stock market is closed because of news that could affect its share price.

Unfortunately, there are many people who claim that the "day trading" in order to keep stocks overnight, as fear or greed, thus setting themselves up as catastrophic elimination of their capital. When day trading currencies, the word "day trading" changes slightly. Since the money can be traded 24 hours a day, not overnight trading. Then you can open positions for longer than one day of active stop losses that can be activated at any time.

Day trading can be further subdivided into a number of styles, including:
Get Fit: This style of day trading on the rapid and repeated buying and selling large quantities of stocks within seconds or minutes. The aim is to make a small profit earning per share of each transaction to minimize risk.
Momentum Traders: This style of day trading in the shares and how to identify a pattern that the sun moves north to the offer to buy these stocks and sell the tops.

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