What is a Day Trader?
Day traders are investors who use a strategy that is often referred to as “in and out.” Essentially, the day trader will engage in a series of transactions that involve buying and selling the same commodity during the same trading day. The goal of the day trader is to take advantage of an upward swing in the value of a given security by buying just before the climb begins and selling just before the price levels out or begins to drop. A day trader does not tend to focus on any type of long-term position. That is, trades are not made with the intention of holding on to the acquired asset for an appreciable amount of time. Instead, a day trader may plan on purchasing securities early in the trading day, then realizing any type of increase they generate until late afternoon. Just before the trading day comes to an end, the day trader sells off the securities and prepares to engage in another round of day trading the following business day. Unlike stock traders who lean more toward long-te
Day traders are traders who close their open trade positions by the end of every day. They usually trade on the smaller market price fluctuations for small profits (or losses). Day traders include both institutional traders (like the big banks) and retail traders (like you and me). In this article, Ill assume that youre interested in become a retail day trader (and not an institutional day trader). What it takes to be a retail day trader Before you decide to become a retail day trader, youll first have to consider these questions: 1.Am I ready to commit to the time demands of day trading? Day trading often requires you to sit in front of the computer for long hours in anticipation of good market entry setups. Because day traders open and close their trades in the short time span of a day, every opportunity for a good entry is precious. As a retail day trader, you really cant afford to let good entry setups slip away. If youll need to be constantly away from your trading terminal (or co
