Day Trading










A speculation in securities or buying and selling any financial instruments like stocks, futures, etc. with a goal of making profit from the difference in buying and selling price on the same trading day is called as day trading. It was initially only available to financial companies like banks as they were the only ones having access to the exchanges and market data. But with the development of technology and Internet, individual traders now have direct access to those exchanges and market data enabling trades at very low cost.
There are different styles of day trading which are suited to different day traders according to their personalities. From short-term trading like scalping where the positions are only held for a few minutes or seconds to longer-term swing and position trading where the position might be held for the whole trading day.
It also has different types of trade like trend trades, ranging trades and counter-trend trades. Trend trades are those trades done in the direction of the current price movement whereas counter-trend trades are done against the direction of the current price movement and those trades that go back and forth between two prices, used when the market moves sideways is called as ranging trades.
Some day traders like to trade throughout the trading day while others wait till the “best conditions” for their trade.

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