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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.

26 Responses

Comment pages: 12Show all

  1. ganesh Says:
    July 12th, 2009
    Posted at: 5:57 pm

    Hi Cb wat is the target for Ril on monday ?

  2. sachin sawant Says:
    August 4th, 2010
    Posted at: 10:33 am

    Hi Sir
    I am a new or fresher in the market Want to invest in market Please guide I have some of Rs 10K and as a beginner want to go with this much amt initiall


  3. praveen Says:
    November 9th, 2010
    Posted at: 12:43 pm

    Hi I want start Stock trading ,so which is best D'Mate account with moderated price.

  4. navin Says:
    April 29th, 2011
    Posted at: 11:06 pm

    I am beginner and want to trade but I don't have idea that which company share should be take. Please suggest me How do I get knowledge.

  5. devesh Says:
    August 6th, 2011
    Posted at: 9:09 am

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

  6. RKPSINGH Says:
    November 9th, 2011
    Posted at: 1:23 am

    i m constantly loosing in intraday trade. any fullproof rescue package to turn losses into profit to recover the losses-rkpsingh

  7. Aftab Alam Says:
    September 8th, 2012
    Posted at: 1:59 pm

    I want to learn about share trading before invest in it because I have no knowledge about it. So please guide me some websites.

  8. chandan Says:
    February 21st, 2013
    Posted at: 1:47 pm

    i want to know the share market, because i want to invest in share market, so please guide me

  9. 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/

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

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

Comment pages:12Show all

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