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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 MatchesTradingTradingBuying and selling securities. Trading haltTrading haltWhen trading of a stock, bond, option or futures contract is stopped by an exchange while news is being broadcast about the security. See: Suspended trading. Suspended tradingSuspended tradingTemporary halt in trading in a particular security, in advance of a major news announcement or to correct an imbalance of orders to buy and sell. Insider tradingInsider tradingTrading by officers, directors, major stockholders, or others who hold private inside information allowing them to benefit from buying or selling stock. Proprietary tradingProprietary tradingPrincipal trading in which firm seeks direct gain rather than commission dollars. Further SuggestionsMatrix tradingNormal trading unit Dealing desk (Trading desk) Export Trading Company (ETC) State trading enterprise Unit of trading Arbitrage Trading Program (ATP) normal trading unit Commodity Futures Trading Commission (CFTC) trading posts Full trading authorization Trading bloc Stock Exchange Automated Trading System PLUS Trading variation programme trading Trading price Trading costs Crowd trading COLT (Continuous on line trading system) Trading desk (dealing desk) Trading pattern After hours dealing or trading Commodity Futures Trading Commission Automated Pit Trading (APT) Trading paper |
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