Sunday, July 12, 2009

Day Trading: How does it work?

So you want to make money and you are interested in investing through day trading? What is Day Trading? Well day trading is when you buy and sell stocks (usually stocks with a very high trading volume) within a matter of minutes or seconds. This is why it's called day trading, because you buy and trade the same stock on the same day. Basically day traders buy and sell large volumes of stocks hoping to make a very small % on the transaction. There are a lot of companies out there that offer day trading services because it is not the kind of thing you can do without a special account and special software. These companies can be quite misleading though promising an easy way to make money quickly when in reality it is very difficult to be successful as a day trader and the success rate is close to that of a professional poker player which is less than 1%.