If you are looking for a bit of thrill with a chance of making buckets of money, then day trading may be the "sport" for you. It is very exciting, and you can tell at the end of every day whether or not you made a profit. Like a lot of other things, it is risky - but it would not really be fun otherwise, right? It can also be a good alternate source of income, whether full or supplementary. So you might be asking how to be a day trader - it might just be fun and profitable.
Well, first off let us clear the air of the hype and get to the facts. Day trading is the practice of buying and selling stock market shares on a daily basis. That means you buy in the morning and sell anytime during the day, such that you won't have any stocks left in your name at the end of each day. The idea is to make profits by applying large sums of capital to buying, then selling your shares when you see small fluctuations in the price.
As an example, let's look at Jim. Jim is a day trader, and he learned how to be a day trader through online resources. He knows the rudiments, and thus can successfully engage in day trading. He buys stock in the Mediumsized Company: at 4 US dollars per share, times 1000 shares, he moves USD4000 in one go. Now over the course of the day he watches as the price fluctuates. Suddenly, he notices that the stock price has struck USD4.10, and proceeds to sell all his shares. That's a profit of USD100 from this exchange alone - and it may not even be lunch time yet!
Of course, you can't expect to make profits all the time. Great losses are very possible too. It is essentially a gamble, like placing bets of horses or greyhounds. As a day trader, you need to learn how to prevent greater losses. That means knowing to sell when you can see the stock price is going down. Of course, those dips may be preludes to stronger rises, and you cannot always tell what's what. Much of the time you will be running on your gut feelings whether or not to buy or sell.
One of the essentials in learning how to be a day trader is just that: learning. If you are interested then you should enroll in an online course. There are several types of these courses, and they also vary in price. The better ones will teach you the concepts and also help you practice in a safe environment. Once you're confident, you'll need to set aside some money you can afford to lose and find a brokerage that will accept online trading. Depending on the brokerage, you may need as little as USD2500 to establish a margin account. Once you are all set, it is time to play your hand in the high-stakes world of day trading!
Well, first off let us clear the air of the hype and get to the facts. Day trading is the practice of buying and selling stock market shares on a daily basis. That means you buy in the morning and sell anytime during the day, such that you won't have any stocks left in your name at the end of each day. The idea is to make profits by applying large sums of capital to buying, then selling your shares when you see small fluctuations in the price.
As an example, let's look at Jim. Jim is a day trader, and he learned how to be a day trader through online resources. He knows the rudiments, and thus can successfully engage in day trading. He buys stock in the Mediumsized Company: at 4 US dollars per share, times 1000 shares, he moves USD4000 in one go. Now over the course of the day he watches as the price fluctuates. Suddenly, he notices that the stock price has struck USD4.10, and proceeds to sell all his shares. That's a profit of USD100 from this exchange alone - and it may not even be lunch time yet!
Of course, you can't expect to make profits all the time. Great losses are very possible too. It is essentially a gamble, like placing bets of horses or greyhounds. As a day trader, you need to learn how to prevent greater losses. That means knowing to sell when you can see the stock price is going down. Of course, those dips may be preludes to stronger rises, and you cannot always tell what's what. Much of the time you will be running on your gut feelings whether or not to buy or sell.
One of the essentials in learning how to be a day trader is just that: learning. If you are interested then you should enroll in an online course. There are several types of these courses, and they also vary in price. The better ones will teach you the concepts and also help you practice in a safe environment. Once you're confident, you'll need to set aside some money you can afford to lose and find a brokerage that will accept online trading. Depending on the brokerage, you may need as little as USD2500 to establish a margin account. Once you are all set, it is time to play your hand in the high-stakes world of day trading!
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