Saturday, November 04, 2006

What Is Day Trading?

This guide is aimed at beginners in the financial trading industry. Day
trading is the buying and selling of a security within the single or the
same day. Day trading can occur in any market place in the world but most
common in the stock market and FOREX.

1. Don't Believe The Hype

First and foremost, don't believe the hype surrounding day trading. If it
were that easy to make quick cash with no risks attached, wouldn't everyone
be doing it? The sharp reality is that while lots of day traders do make
lots of money, the reason why they are able to do it is because of years of
experience and a constant finger on the pulse of the market trends. The
complete beginner is unlikely to make money without great amounts of aid.

2. Manage Your Money

In order to sucessfully manage a day trade, it is recommended that you
consult with a financial professional - at least, for the first month or so.
Keep in mind that some people are immovably convinced that day trading
demands strategies for making even a single dollar. Most day traders are
well educated and funded. They use high amounts of leverage and short term
trading strategies to capitalize on price changes in highly liquidated
stocks and currencies. Also, because there are so many traders, you can
always be sure that there will be a buyer for whatever you are selling.

3. Trading Tips

- Expect to lose money if you don't have the proper training
- Have a lot of capital at the ready
- Only trade with money you can afford to lose
- Limit your losses as much as possible
- Use high tech tools such as software

4. A Turbulent Market

True, there is a lot of money out there to be had, but that's also the
problem. There is a reason why all that money is out there - people are
losing it. You must be ready for the consequences that can affect you
emotionally and financially.
Even as it is becoming hugely popular among inexperienced traders, consider
knowledge and preparation your two best friends.

About The Author: For more great day trading related articles and resources
check out http://makemoneyinformer.info

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