Stock Market Day Trading

Stock Market Day Trading

Stock market day trading is commonly called just day trading. This type of trading has become increasingly popular over the years. Much of it's popularity started during the tech boom when the daily ranges of stocks made it possible to reap large gains within one trading day.

Stock market day trading is simply opening a stock transaction on or after the market opens and closing the stock transaction on or before the market closes.

Let's take a quick look at an example of stock market day trading. In our example here are the prices of our fictitious stock XYZ Company for a single trading day

Open = 40
High = 44
Low = 38
Close = 44

In this example if we bought XYZ Company on the open at 40 and sold it at the close for 44 we would have made a 4 per share profit. If we had traded 1,000 shares we would have a $4,000 profit for the day, not including transaction costs.

Stock market day trading also became extremely popular because many traders felt they could better control their risk better by not being exposed to huge market fluctuations overnight. Basically these traders felt the could sleep better at night by taking their profits off the table intraday.

Stock market day trading is also often referred to as intraday trading which simply means “within the day” or “during the day”.

There were a number of other reasons that stock market day trading increased in popularity. Individual access to stock trading information combined with online stock trading platforms were a few of the reasons. Now a stock trader has access to information and speed of execution once reserved only for the big players and the institutions.

If you are interested in stock market day trading make sure that you have a trading plan and have a thorough understanding of the risks and rewards.

Stock market day trading can be a wonderful and profitable venture. Remember to do your homework and plan to be successful.