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What do I need logistically in order to become a day trader?
Day traders attempt to make a living by buying and selling stock. The name day trader arose since stock positions are usually closed out by the end of the day. The first thing an aspiring day trader needs is money to buy and sell stocks. Other logistical requirements include having an account with a stock broker, a fast internet connection, an understanding of stock trading and technical analysis, and access to real time stock quotes.
What time of day is best to sell a stock?
The best time of day to sell a stock is at the beginning if you are an experienced trader. You would want to wait till later in the day if you are an inexperienced trader.
How do you make money day trader?
A day trader tries to make a profit by taking advantage of minute-by-minute changes in stock prices.
How long do you hold a stock?
Depends on the type of investor you are. Day, short-long term trader.
Where can one learn about day stock trading online?
There are several websites that one can learn about day stock trading. These websites include Master Trader, Rightline, Pristine, Investopedia, and Wikipedia.
What is the last day you can sell your stock and still report the gain or loss in the current year?
When determining what year you sold your stock, the trade date is what matters. This is the day the transaction took place on the stock exchange. If you contact your broker on the last trading day of the year, you can complete a sale in the current year if your broker executes the trade that day. On major exchanges, the last trading day is December 31 unless that day falls on a weekend.
How do you day trade?
In order to day trade you simply start trading stock in high volume. You can learn how to be a day trader on the following site: http://www.tradestocksamerica.com/day-trader.php.
What is a person called who buys shares and sells them immediately?
The closest thing I can think of is a day trader--someone who gets out of all her positions before the end of the trading day. This is an EXTREMELY risky practice and most people who try it lose their asses, but it's possible to make money doing it if you have a very keen sense of the market.
What would the be total cost of stock if you bought 795.18 worth of stock and paid your broker 10 percent?
This sounds like a trick question. The total cost of stock would be $795.18 no matter how much you paid the broker since those monies are not being used towards stock. The question is really just specific to how much stock you own at the end of the day which would be $795.18.
What is the purpose of online stock trading?
Actually the purpose of online stock trading is "making money". Of course there different kind of strategies, like for example short term trader or long-term investors - but by the end of the day all people have one common goal: making money.
How do you become a day trader?
Becoming a day trader is not hard, the hard part is figuring out how to actually trade. When I first started out I spent over $10k in bogus trading programs. All you have to do is pick your broker, fund your account, and start learning from your mistakes. Oh one more thing, stay away from proprietary firms.
How to Day Trade Successfully?
Day trading became popular in the late 1990s and coincided with the growing availability of high-speed internet connections. As online brokers offered increasingly sophisticated research tools and discounted commissions, skilled traders began to develop strategies that revolved around purchasing and selling specific securities within the same trading day.Establishing a Brokerage AccountSelecting the right online broker is a crucial component in building a successful day trading business. Since traders will often engage in numerous buy/sell transactions in the course of a single session, it is important to choose a low commission broker. When calculated over thousands of trades, a no frills broker who charges $2.50 per trade can have a substantial impact on the profits of a day trader when compared to a broker who charges $10 per trade.In many instances, day traders choose to set up multiple accounts for different purposes. Discount brokers help reduce the cost of each trade, while fully-featured brokers provide critical charts and strategy tools.Most importantly, day traders must work with a broker that routes orders through an electronic communication network (ECN). This allows traders to complete transactions directly with one another without having to go through a middleman.Level II and Other ToolsIt is critical for a day trader to gain access to the Level II quote facility. Continuously updated in real-time, Level II highlights the size of every active order as well as each bid and ask price. The constantly fluctuating display provides deep insight into how a particular stock is trending.Charting tools are also an indispensable part of a day trader's arsenal. By looking at the performance of a stock over five, ten and sixty minute intervals, the trader can identify emerging patterns that signal favorable trading opportunities.Day Trading StrategiesA day trader is constantly assessing the market while looking for stock candidates that fit a specific trading profile. In particular, equities that have extreme volatility and heavy volume are usually scrutinized carefully by experienced day traders.Volatility is a measurement of the inter-day stock price fluctuation, while heavy volume ensures an ample supply of both buyers and sellers. When a stock has been targeted, a day trader will further analyze its measurables while looking for trend lines and patterns that confirm the likelihood of a predictable price movement.Pattern Day TradingDo to the extreme risk associated with day trading, the SEC has implemented strict regulations relating to margin and account funding requirements. Anyone who executes four or more "round trips" transactions in five successive business days will be flagged as a "pattern day trader."An account that has been identified as engaging in pattern day trading must maintain a minimum balance of at least $25,000 in cash or equity. If the balance falls below the threshold, the day trader must restore the required minimum either through a cash deposit or a transfer of marginable securities within five business days.
