TRADENET WIKI

What is Day Trading in Stocks?

by Meir Barak | based on content from the Market Whisperer – day trading book

Day trading is an independent profession in which the goal is to apply technical analysis rules by buying stocks cheaply and selling them back at a higher price.

Day traders should not be confused with investors. While both buy and sell stocks, investors—in contrast to traders—do not try to earn their living from the market. A day trader plans in advance how much money to risk with each trade, whereas the investor may, during tough times, discover that most of his or her money has evaporated. Day traders sleep peacefully knowing that most of their money is in cash, whereas the investor is continually exposed to market fluctuations.

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