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Day Trading

Day TradingDay trading has emerged as a new form of trading amongst share traders. As the name suggests day trading refers to the trading of shares with in a trading day. A trading day refers to the time period for which the trading window or the market is open during the day which in India is generally from 9.55am to 3.55pm.

The traders who practise day trading are called day traders. The common practise followed by retail investors and traders is to buy their preferred stocks at low prices and then sell them off when they think that the share price has increased and they are making substantial profits. But the problem here is that you can never be sure of how the market is going to behave and hence day traders are able to minimise their risks. The principle that the day traders follow is to exit the market before the market closes. In this manner they are able to minimise their risks and stay away from the market turbulations.

Day TradingBut sometimes day trading can be risky but can provide high returns. Some day traders often borrow money in order to trade and they are referred to as margin traders. Day traders may use any of the following strategies in order to make profits. From trend following, contrarian investing, range trading, scalping as well as rebate trading. Some people make millions every year just by day trading and not investing. And some people have a normal income just through day trading. If you have a good knowledge of the stock market then you could take the role of a day trades in order to make good profits in the market.

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