Thursday, May 21, 2009

Day Trading For a Living

Some people love numbers, and the thought of learning a whole new language of technical jargon thrills them to no end. They think with the analytical side of their brain at all times, and can be counted on to see the big picture, no matter what else is going on around them. These people have the super speedy brains of a numbers-based genius, nerves than can be slightly shaken, but never stirred, and just a touch of brass; they are the perfect person to take on day trading for a living.

Do not get the idea that these are just some kind of young, hip cowboy types that roam in making trades at random, raking in the big financial rewards as they do so- they must truly know their stuff and they have to have an innate sixth sense ability before heading out into the day trading world. That world, by the way, is online, so heading out is a misnomer as well. Day trading activity takes place daily, online with the more short-term trades that they move quickly. They are literally traders, rather than investors, but can reap huge rewards in a relatively short period of time. Of course, day trading for a living does carry some fairly large monetary risks, so you must know a little about the market, your limits and what your loss cap is before even beginning.

Day traders do not always buy and sell their stocks in the course of the day, some may be held onto for a few days or even a week or more, in an activity commonly known as "swing trading". Doing day trading for a living will probably encompass both types of trading activity, especially on days when certain stocks are fairly flat. Knowing the trends of stocks is always a wise idea, and while the day trader moves quickly, without the wait and see approach of a more traditional trader, they do know and understand these trends.

Before thinking about day trading for a living you must know more than just the stock market and your own capabilities. A day trader must function under certain regulations which include minimum equity requirements for a day trader account, as the day trade buying power of that account and what defines a trader as a day trader. You do not want to begin your new career with SEC trouble looming over your head. Check out the regulations and the requirements. Do your homework and possibly buy and download the applicable software to your home or office computer. Day trading for a living can be lucrative, or it can be the financial death of you, know what you are getting into before you get into it.

Article Written By J. Foley

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