Day trading is something completely different than investing. A day trader buys and holds stock for small time intervals that last from a few minutes to a day or two. An investor buys stock and holds it for much longer. Day traders intent to make money from small fluctuations in stock prices.
Day trading is more like speculating it is not investing. Some say that day trading is like gambling in some ways but I disagree. It doesn?t offer the possible security investing can offer but it is far from gambling. Day traders analyze what is going on. They educate themselves about a specific company and arm themselves with statistical analysis.
Day traders base their buy and sell decisions on the fact that stock prices fluctuate constantly. The volatility of stock prices is what day traders depend on to make money. Conversely it is also what will determine if they will loose money. It is these daily small fluctuations that the day trader depends on to make a profit.
Every day trader relies on the small stock price fluctuations. This is achieved by purchasing large numbers of stock and making a few cents per stock. In the end it ads up. At the same time though buying large numbers of stock expecting that prices will go up has its risks because prices can drop.
If you are contemplating between the two then you should know that being a day trader requires a lot of time patience and practice. It could take a long time before you get used to the everyday shifts and changes in the market. The one thing you should be aware of is that you cant become an expert day trader overnight. The same things goes with becoming an successful investor.
The primary difference between an investor and a day trader is time and percentages. These two terms shouldn?t be confused because they are used to describe two different techniques.
Whether you are thinking of becoming an investor or a day trader you should take some time and learn about the techniques involved. In the end if you decide to take your money into your own hands you should be able to make the right decisions about investing.
The best thing you can do before you start investing is to consult to an Investment Advisor. You need to find someone in your area though. If you reside in Toronto then you should find an Investment Advisor Toronto.
Source: http://www.insurancestop.org/?p=1699
mariachi tyler perry national day of prayer bar refaeli section 8 jackie cooper solar system
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.