Online Stock Trading, Is It Here To Stay?

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Trading stocks on the internet is a relatively new thing for most people but it won’t be for long. The only reason that it is new in the first place is that the internet is new relatively speaking. In 1999 a little under 3 million people traded over the internet, now online stock trading has ballooned with more than 10 times that number of people trading daily.

So why have people begun to do this? Why is it so popular? Well there are several reasons and some are good and s…
online, stock, trading, stock trading, online stock trading
Trading stocks on the internet is a relatively new thing for most people but it won’t be for long. The only reason that it is new in the first place is that the internet is new relatively speaking. In 1999 a little under 3 million people traded over the internet, now online stock trading has ballooned with more than 10 times that number of people trading daily.

So why have people begun to do this? Why is it so popular? Well there are several reasons and some are good and some are not as sound when you think critically. The most popular reason cited for online stock trading is that they no longer have to forfeit some of their earnings to brokers in fees charged per trade. This doesn’t get them out of being charged fees per trade but it does cost a lot less to do it yourself with one of the dozens of day trading companies that there are available on the internet.

People are often trying to get away from brokers all together for more than just the fees they charged. Many people are fed up with brokers who did poorly in the recent downturn in the market. Their performances were sub par and people lost a lot of money so you can’t blame them. However the word of caution is to not lump all brokers into the overpaid and under skilled group. There are many brokers who are well worth their weight in gold because they know the market so well and have such good instincts-this shouldn’t be your only draw to online stock trading.

Other reasons people left their jobs to go into full time trading on the internet because they think that they can do better at it than at their real job and it will be more fun to boot. There is a certain romantic idea that people have about sitting in their beautiful home sipping gourmet coffee and checking in on their online stock trading portfolios a few times a day while making hundreds of thousands of dollars. This is a dangerous move for lots of people because they have no idea what they are getting into.

In order to be successful you have to have knowledge of the world economies and how that can be affected by the current events of the day. You also have to be good at evaluation of companies as far as potential for profit and so on. The third thing that you must have is nerves of steel and a loose grip on the money that you are trading with. Many day traders (or former thereof) will tell you of the “hits?they have taken totaling many thousands of dollars in a few hours for a wrong move.

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Is Day Trading For A Living Your Cup Of Tea?

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If you like working with other people’s money, then maybe day trading for a living is what you should be doing. This type of trading works daytime hours only, from the moment the stock market opens at 9am until it closes at 4pm in the afternoon, you can do a lot of trading in that amount of time. Or maybe you want to do day trading for livings with your own money, that way if you loose it, then you have no one to blame but yourself. However, it may be a good way to watch your…
day trading for a living, day trading
If you like working with other people’s money, then maybe day trading for a living is what you should be doing. This type of trading works daytime hours only, from the moment the stock market opens at 9am until it closes at 4pm in the afternoon, you can do a lot of trading in that amount of time. Or maybe you want to do day trading for livings with your own money, that way if you loose it, then you have no one to blame but yourself. However, it may be a good way to watch your money grow too. The following is the basic definition of what day trading is all about. Maybe it is your cup of tea, maybe not, only you can decide.

What is Day Trading?

Day trading for a living is when you take a position in the markets with a view of squaring that position before the end of that day. Day trading for a living mean a trader usually trades many times a day looking for fractions of a point to a few points per trade, however, by the end of the day he or she will close out all their positions. The goal of the day is to capitalize on price movement within one trading day. Unlike investors, the day trader will hold positions for only a few seconds or minutes, and never overnight.

What day trading really means.

The meaning of day trading is actually a misunderstood term. True day trading means not holding on to your stock positions beyond the current trading day, meaning your not suppose to hold on to your stock overnight. Trading this way is really the safest way to do day trading, this way one is not exposed to the potential losses that can happen if the stock marked is closed due to news that can affect the prices of your stocks. There are many people out there today who are not very good “day traders,?they are actually more like con artists just out to take your money. Because of greed, they will hold your stock overnight, setting themselves up for the catastrophic elimination of their capital. In day trading currency, the term “day trading?changes slightly. Because currencies can be traded 24-hours a day, there can’t’ really be any overnight trading. You can have open positions for longer than a day with active stop losses than can be activated at any time.

There are a few different types of day traders out there today, it can actually be subdivided into a number of styles.

Scalpers- This type of day trading involves the rapid and repeated buying and selling of a large amount of stocks within minutes or seconds. The goal here is to earn a small per share profit on each transaction while minimizing the risk.

Momentum Traders- This style of day trading involves identifying and trading stocks that are in a moving pattern during the day, in an attempt to buy such stocks at bottoms and sell at tops.

The advantages of day trading for a living is there are no overnight risks. Because positions are closed prior to the end of the trading day, news and events that affect the next trading day’s opening prices do not affect your client’s portfolio. Day trading for a living has a greater leverage on your client’s capital because of the low margin requirements as their trades are closed in the same market day. This increased leverage can increase your client’s profits if used wisely.

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