What Is Day Trading Stock?

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Day trading is an age old practice in the financial markets, which simply means that assets and securities are being bought and sold within the span of one trading day. This is contrary to after-hours trading, or late trading, which is when exchanges happen after the normal markets have closed for the day. Brokers are then classified sometimes as to the time they begin dealing like day traders, after-hour traders and late traders. To get financial info you should look at telechart 2000.

Generally when trading the methods and processes are the same, it doesn't matter when the traders go into action. However, there are certain assets and securities that are being exchanged only during the trading day, such as: currencies, stocks and stock options. There is also a market for many of futures contracts like: commodities, equities, and interest rate futures. I like to get my information from telechart.

There was a time when day trading became the exclusive playing field of financial institutions (i.e. and major pro investors. Besides that, investors who don't meet the financial criteria were somewhat relegated to after-hours trading, even though that wasn't a formal option. These days, however, more and more casual and novice traders are entering the fray.

There are really a couple of reasons for such major changes. One: technological evolutions (like the World Wide Web) are paving the way for speedier communication and financial transactions. If you look into the forex trade online, many casual traders are basically dealing with virtual money - although there is a physical monetary equivalent to virtual money. Finally if you want a second opinion look into telechart gold.

Plus, casual traders can trade stocks in the investment markets - in all the financial markets, all the time, no matter where the are - even worldwide. When you see that one small investor, then you should think what all the worlds big banks and financial institutions can do that are following day trading profits.

Two: newer and more lax legislations, both country-wide and on a global scale, have opened the way for many investors who may not otherwise meet the level of certain financial criteria. This means that almost anyone with the desire; the technology (computer and Internet access); and the money to spare (as little as $100) can begin trading in any asset or security in any financial market.

Talking about casual and novice day traders over the internet, the best selling way is short-term day trading. As the name suggests, this technique means buying stocks for a very short period of time and then selling it immediately. This means that the ROI or return of investment can be achieved in the quickest way possible. Depending on the stocks or assets in question, this technique can be handled in a span of only a few minutes to as long as 2 months.

Long-term trading is also prevalent during the day trading hours, but usually, it is the larger financial institutions who handle such affairs. A good example of this is dealing with mutual funds. Assets in the markets can be held by the holder for a long time, up to years, and even some can be passed down for generations. The financial instrument holder ears his money by letting whatever he holds gain in value and they grow in dividends on a basis of months or years.