Day trading
Day trading refers to the practice of buying and selling stocks and shares within the same trading day in such a way that all trades are closed before the market close of the trading day. Traders that participate in day trading are called active traders or day traders. Some of the other day-traded financial instruments are stock options, currencies, and futures contracts such as equity index futures, interest rate futures, and commodity futures.
Day trading was once fairly restricted to the professional investors and speculators. However, with the advent of electronic trading and margin trading, day trading has become increasingly popular among casual, at home traders. There are many techniques by which day traders attempt to make profits, but research plays a large part in any share trading investments.
While it is very possible to make a living day trading, many beginning Day Traders will lose money. It is estimated that approximately 80% of day traders will lose some of their capital before learning the disciplines necessary to achieve success. There are a large number of tools available to assist Day Traders but the most important asset is a good education!