A Day Trader is one who executes buying and selling of financial instruments on the same trading day or intraday. Day trading is often seen as a lucrative option by many to maximize profit, but this may not always be an easy game. Day traders usually target highly liquid stocks where slightest movement is being monitored to assess and used to book profit. Day traders use leverage to multiply their
There have been umpteen opinions on how margin trading can make or break people's trading careers. While for some traders (typically with deep pockets), margin trading is a way of life, trading on margin has also been suicidal for many an amateur trader. The China stock market crash was the latest example of what over-leveraged margin trading can lead to - what with "grandmas, cab drivers, college kids using mobile
While day trading and swing trading both follow a short-term trading strategy and look for short-term profits, looking at price fluctuations. However, there are some key differences between the two types of traders, acknowledging which, should help us understand trading better and be better traders ourselves! 1. Number of trades per day: This one is obvious - if you’re a Day Trader, you will need to be making at least one trade every day!