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Conceptof trading:
Day trading is a process of buying and selling of financial instruments within the same day. The people who participate in day trading are called day traders. Commonly used day traded financial instruments are stocks, currencies, options etc. Once upon a time day trading was exclusive to only financial companies and professional speculators.
History of trading:
In the New York Stock Exchange, all important U.S. stocks were traded. A trader used to contact a stockbroker. That stockbroker would relay the orders to a specialist. These specialists would make markets with only a handful of stocks. You’ll get more information if you use our day trading homework help service.
Risk factor:
Day trading is very risky. The results can be both extremely profitable and extremely unprofitable.
- If someone trade a loser’s game rather than a winnable game he’s likely to be a loose his money.
- Incompetency in money management can cause problem.
Characteristics of a Good Day Trader:
- If you are familiar with the process of day trading, you have a chance of being a good day trader.
- As the market can change within a couple of seconds a good day trader needs to be quick-witted. They learn from their past experiences and take decisions quickly.
- Good day traders generally have interest in the financial markets. If you are not passionate about this field you will not achieve success in this field.
- You need to be financially independent and stable to be a day trader. Adequate amount of money is required. That allows them to trade with money they afford to lose.
- If you are serious about trading carrier always remain a student of the markets. As markets change every day you need to understand how it works.
- A successful trader should show some patience. It is not possible to be rich in a day or a few days. It takes a lot of time and efforts.
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