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Day trading |
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Day tradingIn the simplest terms, the purchase and sale, or sale and purchase, of a security on the same day. Day traders aim to make small profits on a large number of 'intra-day' transactions. They follow the markets, use technical analysis to spot price trends, and get 'in and out' very quickly.Day trading has come to be synonymous with the trend for private investors to abandon their normal jobs, spend a few thousand pounds on a computer, some software and a data feed, and trade the markets for a living.The difficulty for UK day traders is that dealing costs are still relatively high. In the US, where charges on trades tend to be lower than in Europe, and traders can link direct to the markets, it is more practicable.Day trading comes with a strong wealth-warning. To day trade successfully requires good analytical skills, the ability to develop and follow a system, and stamina. Not everyone is cut out for the physical and mental demands it makes.Similar MatchesInsider Trading & Securities Fraud Enforcement Act of 1988 (ITSFEA)Insider Trading & Securities Fraud Enforcement Act of 1988 (ITSFEA)Federal legislation that greatly increased the penalties for trading on material inside information. Decimal tradingDecimal tradingThe quotation and trading of stock or bond prices in decimals, as opposed to the quotation of in fractions. Trading profitTrading profitThe profit earned on short-term trades of securities held for less than one year, subject to tax at normal income tax rates. Commodity Trading AdvisorCommodity Trading AdvisorAn investment manager that focuses on long and short trading in the futures markets. The trades are often intraday trades. Sometimes referred to as **Managed Futures. Trading authorizationTrading authorizationA document (power of attorney) a customer gives to a broker in order that the broker may buy and sell securities on behalf of the customer. Further SuggestionsOvertradingCommodity Futures Trading Commission Unlisted trading Central Warrants Trading Service programme trading Suspended trading Intermarket Trading System Trading volume Historical trading range Side by side trading After hours dealing or trading trading unit Matrix trading Margin trading Trading State trading enterprise Mock trading Trading unit last trading day Trading pattern Trading costs Proprietary trading Export Trading Company (ETC) fictitious trading Trading symbol |
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