The Day Trader aka DayTrader

Day Trading

A day trader is someone who buys and sells some sort of financial instrument, generally a stock or an option, during the same market session. These sort of active traders are known as day traders, because they don't hold their trades overnight. They are finished with their better trades during the day.

Sometimes a day trader will conduct hundreds of short-term trades during one market session. This is possible only if an individual meets specific financial regulations. A day trader must, for example, have at least $25,000 in their trading account. Otherwise a trader is limited to four day trades within a five-day period.

The advent of day trading came about because of the evolution of computers and electronic trading. It enabled the trader to place the trade in an instant and close it as quick as the price target is met. Such speed was impossible when all trades had to be place through a broker, who needed to communicate with the broker on the floor of the exchange. The electronic trading platform is also much less expensive than employing a live broker, which makes it easier for day traders to make a profit.

Day trading is not an easy occupation. It is estimated that 90 percent of day traders fail or lose their available funs before learning the discipline needed to be successful. Many day traders fail to obtain a good education, such as one available here at Better-Trades.

Day trades need special equipment, including a direct feed with market data. No successful day trader can survive on the delayed feeds that come to most free stock market programs. A direct access broker is a requirement.