If you are new to day trading, there are many topics and terms to become familiar with. Day trading is investing in the stock market, but trading with a short term profit strategy, often involving multiple transactions throughout a single day.

In the past, day trading was only an option for institutional investors and corporations that had the resources and technology available. With the invention and expansion of the internet, day trading is a strategy available to almost any investor with a brokerage account and access to the internet.

Some day traders trade on a short term basis while others have a longer term strategy. Short term traders may only hold onto a security for seconds, minutes or a portion of a day. Long term traders may hold a position for a day or even a couple of days to attempt to turn a profit.

Day traders also have several styles of trading. Trend traders are when day traders sell or buy when a security goes up or down in value. Counter traders occur when a trader goes back and forth within two prices on the same security.

Some day traders choose a single style, while others use styles in combination to get the best results.

Day traders can trade within the securities markets, commodities markets, options markets and futures markets. Almost any underlying security can be leveraged in a day trading strategy.

If you are considering leveraging this strategy, consider evaluating the many tools that are offered to traders including independent software and the assistance that your brokerage firm may provide.

Categories: Trading

*Disclaimer:It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options.