What is day trading?
May 29th, 2007 | Category: tradingSo these days, I am reading and learning about day trading. In an effort to understand it better, I figure I will write about it as much as possible.
So if you are even still reading, you’re probably like, “NWTF IS DAY TRADING!?!?” Well by definition a professional day trader is someone who trades stocks in the office of a registered broker dealer. With enough training and experience, some of these traders might eventually trade right from the comfort of their own home or office.
Pablo says, “Hey Dateve, I got stocks comin’ out of my ass. I got stocks in F, MSFT, NSTFU, GOOG, and EGT. Does that mean, I get the ‘l33t skillz Day Trader‘ nametag??”
Dateve says, “NEG!” A day trader will leave everyday flat, meaning he will go home every night with no open positions at the end of each trading session.
Day trading requires a lot of self discipline and a the understanding that the average size of a day trader’s profit will be smaller than that of a short-term position trader because of the time and the range of the trading. Day traders will stop out much quicker than position traders due to the daily market noise such as programs and announcements from other brokerages and companies. Volatility = “YOU WIN’zzzz’dddDddD!!!” The first most important thing you must manage as a day trader is the size of your loss, and second is to maximize the profit on each trade (YA THANKS TIPS!).
So the moral of this lesson is “Win a buck and lose a quarter“. Let’s talk more later.
PS. I hope the Anaheim Mighty Ducks flight to Ottawa is hijacked and flies into the Honda Center. DUCKS WIN!!! DUCKS WIN!!! Nooo… I WIN! Go die!
I hear that EGT is struggling because the worlds supply of leather is being used up by another company: Ledderz Extremezorz Envelopeezzzzz
TRADE into that company…i hear it wont crash. Unless it hits a freak patch of gravel. Coulda happened to anyone.