The Life of a Day Trader
The life of a day trader appears glamorous on the surface, but involves a lot of stress and risk. As a day trader you will speculate, rather than invest, in the stock market, buying and selling stocks every day.
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Follow Stock Movements
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Every day, a day trader sits before a computer, following movements in stock prices. Stock prices move up and down every day depending on the day's events and information available to investors.
Buy And Sell
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If she thinks a certain stock is poised to rise, she buys it. She expects to sell it for a higher price by the end of the day.
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Profit or Not
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If his theory is borne out and the stock price rises over the course of the day, he will sell the stock and make a profit on the difference between the buying and selling price.
There's Risk Involved
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It is not a given that the stock the day trader is betting on will rise. If the price actually declines, the trader doesn't make the profit she expected.
Stressful Endeavor
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Day trading involves buying and selling a big volume of stock in a very short time frame to make a profit. For a day trader, a delay of a second or two could make a difference between making a profit or taking a loss.
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References
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