What is Day Trading?

Mike Career Trader, Educational Resources June 12, 2010
What is Day Trading?

Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions are usually closed before the market close for the trading day.

Traders that participate in day trading are called active traders or day traders.
In order to become a good trader, you must educate yourself on the ins and outs of the business. You must do a lot of research to be able to understand all the terminologies being used, there are also a lot of websites on the internet as well as books written about day trading that will benefit you.

Learn from people who are already doing it, ask them about the positive and negative experiences they have had being a day trader.

Look for brokerage firms that offer training classes or seminars on the subject that will help you jump start your career as a trader.

There are also practice accounts being offered by internet brokerage firms that will allow you to learn techniques and strategies while trading with play money. This will give you the confidence to enter the trading business.

Another important thing to consider is that you must be prepared to take some losses, the market is unpredictable thus you shouldn’t expect a 100 percent success ratio. You may experience some losses or low profits at some point of your trading career but what matters is your long-term profit.

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