Options trading

Day Trading Stock

Day trading stock can be a great way to make profits in today's market.
the concept is simple: You enter a stock position at or after the open of the day and you exit the same stock position at or before the close of the day.

Stock selection is important in day trading stock because the time frame in which you can profit is much shorter that in medium and long-term trading strategies.

Stocks that have a large range during the day are preferable. This simple logic is that the more a stock moves during the day the greater potential a trader has for profit during the day. Profits can be made day trading stock with smaller intraday ranges. Remember, thought the smaller the intraday range the more shares you must trade to make a profit.

Let's look at an example Stock A has an average intraday range of 5 points and Stock B has an average intraday range of 1 point. Assuming a perfect day trading stock execution in each stock you would have to trade 5 times as many shares of Stock B to equal the profit of of Stock A. Also consider that with the number of shares traded commissions costs will also rise.

Commissions costs will logically rise in some instances when day trading stock because the more frequently you trade the higher your commission costs will be. Obviously if you trade 10 times a day every day your commission costs will be higher than if you traded the same number of shares once per week.

One of the characteristics of day trading stock that traders like the most is that there is no overnight risk. When you close your positions for the day that's it. Your positions won't be affected by any bad news or earth-shattering events.
Many traders prefer this method of trading because they say it lets them sleep at night.

Here's more information on day trading

We wish you well in your trading,

Regards,

The Stock Trading Review Team

Disclaimer - Please Note:

Readers are advised that these articles and stories are written solely for informational and educational purposes and are not to be construed as an offer to buy or sell Securities. We cannot give you Investment Advice.

We do not recommend particular Stocks, Options, Index's, Funds or any other security of any kind. If particular Securities are mentioned, they are mentioned only for illustrative and educational purposes.

Our goal is to teach you how to identify and trade trends for yourself so giving trading advice would be contrary to this principle.

You must back test everything you learn here to satisfy yourself that it works in the Stocks or other markets you intend trading. We specifically do not guarantee that you will make any money by implementing these trading and investing strategies.

This information is intended to provide you with basic financial and educational instruction regarding your personal investing and financial welfare.

The opinions and analysis included herein are based on sources believed to be reliable and are written in good faith, but no representation or warranty, expressed or implied is made as to their accuracy, completeness or correctness.

The people in these stories are all fictitious and the trades mentioned are all hypothetical.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained on this website or in our Newsletter should be independently verified.

Trading involves the risk of serious, potentially catastrophic financial loss as well as the potential for profits.

Please read our Full Risk Disclosure Statement for further information.

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