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What is Day Trading?

This article was posted on Jun 11, 2008

Q.What is Day Trading?
A.The term “day trading” is a widely misused and misunderstood term. Real day trading means not holding on to your stock positions beyond the current trading day; in other words, not holding any position overnight. This is really the safest way to do day trading because you are not exposed to the potential losses that can occur when the stock market is closed due to news that can affect the prices of your stocks.

Unfortunately, many people who claim to be “day trading,” hold stocks overnight because of fear or greed, thus setting themselves up for the catastrophic elimination of their capital. When day trading currencies, the term “day trading” changes slightly. Since currencies can be traded 24-hours-a-day, there is no such thing as “overnight” trading. Thus, you can have open positions for longer than a day with active stop losses that can be activated at any time.

Day trading can be further subdivided into 2 styles, including:

1.Scalpers: This style of day trading involves the rapid and repeated buying and selling of a large volume of stocks within seconds or minutes. The objective is to earn a small per share profit on each transaction while minimizing the risk.

2.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.

24 Responses

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Comment pages: 12Show all

  1. CB Says:
    February 21st, 2013
    Posted at: 1:48 pm

    Hi chandan, sure. you can start with short term trading in small quantities. calls are posted daily here by 8.30am: http://nseguide.com/intraday-calls-tips/


  2. Deepan Says:
    March 28th, 2013
    Posted at: 4:51 pm

    i want learn intraday treading.please sugest me website&books


  3. CB Says:
    March 28th, 2013
    Posted at: 5:15 pm

    Hi Deepan, intraday calls are posted daily here by 8.30am: http://nseguide.com/intraday-calls-tips/ . for more websites you can try searching for tutorials on google.com


  4. sampathkumar v Says:
    August 22nd, 2013
    Posted at: 5:19 pm

    know how to start my account in share market.i want know full deta


  5. vimal Says:
    October 22nd, 2013
    Posted at: 12:03 pm

    hiiiii,
    spicejet buy or not?


  6. CB Says:
    October 22nd, 2013
    Posted at: 12:57 pm

    Hi vimal, not yet. looks a bit weak


  7. Niraj Says:
    November 23rd, 2013
    Posted at: 2:20 am

    Want to know what is the reason that ERA Infra is going down day by day


  8. Niraj Says:
    November 23rd, 2013
    Posted at: 2:23 am

    First try to do paper trading,Keep SL to all your orders while trading
    Dont overtrade, be prompt in taking disicions.

    Read reviews and track every movement of a particular Scrip

    still if you need some more guidance get back to me


  9. gnrao Says:
    January 9th, 2015
    Posted at: 6:28 am

    please keep this site and information for all investors ,every year at
    least every fortnight
    all investors will appreciate. new investors do not have the expertise you all have.
    please suggest 8/10 growth stocks to hold for long term and 8/10 bes stocks for intraday
    to make atleast Rs. 50 a day
    Thanks a lot


  10. joseph Says:
    February 28th, 2015
    Posted at: 5:02 am

    hi I am a beginner pls advice me to learn share market and how to use this website


  11. UMAMAHESWARI Says:
    August 21st, 2015
    Posted at: 9:26 am

    plz suggest shares for daytrading today


  12. manus Says:
    September 27th, 2015
    Posted at: 7:34 pm

    Hi CB, Thank you very much Sir. But some time I am seeing in old calls that you gave calls in the day time also. So how to get instant up date on your call. Otherwise I will miss the call. You are doing very good help to us sir.


  13. CB Says:
    September 28th, 2015
    Posted at: 7:55 am

    Hi manus, yes, if there is no pre-market call given at 8.30, we usually give during market hours. you can check the website regularly or join the rs.700 pack. in this you will receive all call alerts for 3 months on the mobile.


  14. sandeep Says:
    January 22nd, 2016
    Posted at: 6:33 pm

    very good charting tool very helpful thank u.


  15. sandeep Says:
    January 22nd, 2016
    Posted at: 6:38 pm

    wech moving average bast for intra day


  16. r.paridhi Says:
    December 28th, 2016
    Posted at: 2:11 pm

    dear sir/madam,i am fresh to trade, wish to cash trade (intraday trade) if possible to send the beginners guide through by mail.(ramrajparidhi1965@gmail.com)
    thanking you
    r.paridhi

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