Day trader. What is a “Day Trader”

Day trader (English Day trader) is an investor trying to make a profit by making quick deals within one trading day… The day trader does not leave open positions for the night and closes all trades before the market close. Some day traders use leverage to maximize the return on small fluctuations in stock prices.

More about day traders

Day traders pay a lot of attention to stocks, although , in general, is not limited to stocks only. Some traders buy and sell bonds, foreign currency, products, options, and even-derivatives contracts.

There are several types of day traders. For example, day traders who try to make small profits on large volumes of securities are called scalpers(by small speculators). Another type of day trader is momentum traders who find securities showing strong price trends on a particular day and try to capitalize on those trends. Day traders often use to identify suitable securities for day trading, as well as to determine ideal points entrance and exit to execute transactions.

Day traders tend to carry out the bulk of their transactions with low-cost online brokers, as the higher commissions paid by the traditional broker with a full range of services will turn out to be prohibitively high. Some day traders avoid brokers entirely by purchasing memberships indirect access brokerage systems. Such a system directs orders to an electronic communication network (ECN), which is a computerized system that allows traders to make transactions without a broker.

Most day traders close their positions at the end of each trading day to avoid the possible negative impact of news or other events that could change investor sentiment overnight. But there are traders who are willing to take risks and hold securities for several days. They are called swing traders.

It is important to understand

Day trading is often associated with an easy path to wealth. In fact, this rarely happens. The SEC warns: “Day traders typically face severe financial losses in the first months of trading.”

During the bull market in the late 1990s, day trading became a popular way to make quick and easy profits. Some people consider day trading a form of gambling and claim that using it increases volatility in the markets. At the same time, others see day trading as a legitimate means of capitalizing on the short-term nature of trading.

Either way, day trading requires solid analytical skills and rigorous discipline, especially for those looking to make significant progress in this. Given the extremely speculative forecasting, natural trading is not a good choice for those who lack significant financial knowledge and emotional stamina.

Day trading online. Beginner's Guide. Book Review by Tony Turner

Online day trading is a large study of the merits of day trading. Tony Turner teaches aspiring finance professionals on how to be successful in this field and provides lucrative, practical advice for improving results.

Description of the book “Day Trading Online. Beginner's Guide “

In this edition, Tony Turner guides the reader through the main stages of the day trading process, introduces the basic concepts, and tells how to behave like a specialist in this or that case. Most of the book “Day Trading Online” is devoted to technical analysis. There are many different tools out there, but Tony advises the trader to pick a few that are most suitable and use them. In the book, the author describes the nature of the exchange, talks about innovative strategies and tactics that help a trader to make money.

The author shows the difference between an investor and a trader, talks about preparing a trader for trading, gives examples of life situations in the market, in which some specialists lose money and others earn. Tony Turner considers such a condition as a “trader's illness” – trading in a broken state, which is caused by a series of defeats and victories, constantly changing decisions, and voluminous flows of information. The author talks about the psychology of a trader, helps the reader understand whether he is ready to engage in day trading and whether he will succeed.

“It seems to me that after reading Tony's book, newcomers will start making money on the stock exchange faster,” says John Carter, a professional trader, head of Trade the Markets and author of the book “Mastering the Trade”.

Tony Turner herself in the publication Day Trading Online addresses the reader as follows: “Welcome to the passionate, unpredictable world of day trading. Listen to me carefully, because this will be the most exciting, most exciting journey in your life! “

Benefits of day trading

  1. Work anywhere… Working hours are planned only at the discretion of the trader. If you like, you can work from home, in the office, or even while traveling.
  2. Life anywhere… If you want to leave for another city or country – grab your vehicle and hit the road! You can also afford any vacation – you just withdraw money from your account and enjoy your vacation.
  3. Small initial investment… All that is required at the first stage of work is a good computer, a monitor, a fast Internet connection, and standard software.
  4. Responsibility only to yourself… You won't have an annoying boss, boring colleagues, and typical office problems. You do not need to follow the dress code and travel long distances to work on public transport. You can trade without getting out of bed!
  5. Trader's own style… You work at the pace at which it is convenient for you – naturally or dynamically, actively, or restrained. Plus, you can take a break when needed.
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