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What is Day Trading?
Home » Investing » Day Trading » What is Day Trading?Day trading most typically refers to the process by which an individual purchases and sells stocks during the course of a typical business day so that, at the end of the business day, there is no difference between stocks puchased and stocks sold. This may, at first, seem as a process in futility but, the process of Day Trading is not concerned with units of stock purchased or sold but, the prices therein.
A profit or loss in Day Trading is made and focused primarily on the difference of prices between what stock the Day Trader purchases and what the Day Trader sells. Despite the quick nature of Day Trading, not everything is settled the day of Day Trading but a few days a later.
Day Trading can then be categorized by the, four or more, orders of stock-exchange on a one day basis or basically refers to positions which are opened and closed on the same trading day.
Even though most individuals associate Day Trading as a rather risky and dangerous venture, Day Trading is, in all reality, no more dangerous or risky than the trading of any other socks within a longer time period or by another process. The Day Trading aspect of Day Trading is not the risky part but, it is the common use of borrowed funds, which results in vastly amplified profits or amplified losses in a very, very short amount of time, that is truly dangerous.
On average, an upwards of ninety percent of all Day Traders lose money.
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