Thanks.
2007-01-07 12:52:53 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
daytrading the the act of buying and selling a stock multiple times a day. stock prices are always up and down a little during the day. Daytraders try to capitalize on this by buying low and selling high during the course of the day. It is very risky and you really need to have a lot of knowledge about what you are trading in order to be sucessfull long term.
2007-01-07 13:01:54 · answer #1 · answered by QandA 3 · 0⤊ 0⤋
99% of daytraders lose money in the long run. The spread on your trades can be fractions of a penny. It is nitpicky, penny pinching buying and selling of stocks with 5 or more trades done in 5 days. No pun intended but if your asking questions about daytrading, its not for you at this point. I suggest you learn more about the fundamental investment principles and work your way to greater knowlege through that. You hear of those guys that jump from the 11th floor out their window, their probably day traders.
2007-01-07 13:01:58 · answer #2 · answered by DreamMaker 2 · 0⤊ 0⤋
I am not sure how it works exactly. My dad does day trading and he has made over $2000 in the last month. He enjoys doing it, but it is very risky. You can lose a lot of money if you don't sell a stock when it is going down. The stocks change very quickly so you have to like sitting in front of the computer and watching the numbers chnage. You have to be very fast. He uses the company Terra Nova to trade. You can visit the website and even watch classes on it to help you learn how everything works.
This is the web site. www.terranovaonline.com . good luck.
2007-01-07 12:57:26 · answer #3 · answered by CrazyChic86 3 · 0⤊ 0⤋
Suppose you had some, say, $50k in an account (often the minimum is around $25k) last friday. Somewhere around the 11 o'clock hour you noticed Exxon (XOM) at about $72.50-60-ish and bought, say, 200 shares (around $14.5k plus commissions). Then somewhere around 2:30 it looked kinda stagnant so you sold it at around $73.10-20-ish. You just made $120 for the day.
Meanwhile, if you noticed EMC around 10 o'clock and bought a thousand shares at, say, $13.54 ($13,540 plus commission), then sold it around 3:30 at about $13.60 ($13,600 less commission), then you just risked a little over $13k for around $40 or so, depending on how much the commissions charged.
So is $160-ish a good wage for the day? That money in the bank would have only earned you about $3 in interest. But then this assumes that you got lucky and spotted a couple of upwardly mobile stocks on a day when most of the stuff was going down. Short selling is kinda tricky, but you could possibly have made money on them, if you knew the direction and got the sale started on the up-tick, which is hard to do when it is falling.
It gets complicated. Lots of risk for just a little reward. Risk means you could lose money.
2007-01-07 15:17:05 · answer #4 · answered by Rabbit 7 · 0⤊ 0⤋
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2016-02-16 18:01:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋
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2007-01-07 13:07:15 · answer #6 · answered by Anonymous · 0⤊ 0⤋