Day trading is an investment tactic that does online daily stock trading with a relatively short investment. Those who do day trading usually buy and sell securities during the same market day and, as a general rule, do not hold stocks overnight. Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations.
How is day trading different from swing trading?
Day trading relatively holds the stock for only the day. After the stock market closes, a day trader has no stock in his hands. Swing trading holds a stock for at least a few days, waiting out for the best price before dumping it back to the market. Day trading is much more stressful and requires guts and a keen business sense. Once you get good at day trading, you can earn up to $50,000 from your initial investment.
How much capital would you need for day trading?
You need an investment equivalent to buy 1000 stocks. That is roughly around $20,000. Because the chances are small that you will find a marketable stock with a price of under $20, this is enough to get your day trading underway. However, you must remember that this is a 100% risk capital so do not worry too much if you lose this amount very early.
What are the general rules for day trading?
- Always trade with the trend.
- Cut losses short
- Never get emotionally involved in your trades.
What are the most suitable stocks to trade for day trading?
It is advisable to trade high volume stocks. Go with the trend with the popular stocks available. It'll be easier for you to sell those stocks at the end of the day trading.
How does a usual day trading transaction occur?
For example, at 10:00 AM a day trader might buy 1000 shares of stock XYZ just as the price begins to rise on good news, then sell it at 10:04 AM when it's up by 1/2 ($0.50). The day trader makes $500, minus commission. With today's cheap commissions of $29.95 or less per trade, that's a quick $440.10 or better, excluding taxes.
Most people who deal with day trading spend all of their time in front of the computer, watching the slightest change in the stock price. As the prices go up and down, the day trader must be alert as to when to sell his stock or wait for the moment to hold on it. This can be a very stressful lifestyle as a mere second could mean an increase of half the stock price and missing that moment for any person engaging in day trading could mean a loss on his investment.
Day trading is not a get rich scheme. It is serious business where you could lose everything within minutes because of wrong information. Before jumping into day trading, remember to do your homework first. Go to seminars on day trading, use simulations if possible and practice reading market indicators. To be a successful day trader, don't just need luck. Knowledge and experience counts. Welcome to the world of stock markets and investments!
Funny Facts Of The Day
Social Anxiety Disorder
Social anxiety disorder is a kind of mental disorder wherein a person experiences an intense or unreasonable fear of social gatherings where there is a possibility that one may get embarrassed or ridiculed. This mental condition is also known as social phobia. Most of the time, these anxieties arise from an intense fear of being observed and scrutinized. This may range from simple things like the way a person walks, talks or acts; to important job functions like performing in front of a crowd, giving presentations, or finishing an interview for a job application.
Symptoms
Social phobia disrupts a person's normal life because it makes sufferers avoid doing things that require social contact in fear of embarrassment, and situations where they might become the center of attention. People with social phobia manifest two general symptoms:
1.Emotional symptoms which may include the following:
?An overwhelming fear of being put into situations where one is surrounded by strangers
?Being extremely scared of being in situations where the sufferer may be judged
?Worrying excessively about embarrassing or humiliating one's self
?An baseless fear that others will notice that you look anxious
?Severe anxiety that can disrupt one's daily routine, work, school or other activities
2.Physical symptoms include:
?blushing
?profuse sweating
?trembling or shaking
?nausea
?stomach upset
?difficulty talking
?shaky voice
?muscle tension
?confusion
?palpitations
?diarrhea
?cold and clammy hands
?difficulty making eye contact
Mental health professionals say social anxiety disorder is closely related to shyness. However social phobia differs in the sense that this disrupts normal socializing functions. It is true that everyone goes through a stage of shyness in their life, overcoming it is a different thing. When it becomes too much that it interrupts your daily life and relationships to the point where you are sick with worry, it is time to seek counsel. It is good to know the signs and symptoms of social anxiety disorder to be able to determine and treat this said condition before it worsens.
Social anxiety disorder sufferers always think that other people are more confident that they are, that other people are better than them. They feel uncomfortable being around people that it makes it difficult for them to eat, drink, work, asking questions, asking for dates, even going to the toilet, when other people are around.
Treatment
Fortunately for people with social phobia, a combination of treatments and therapies are available to help them get over this kind of anxiety disorder. Mental health professionals have been using a combination of talk therapy and medications to minimize, if not fully get rid of, the effects of having social anxiety disorder.
Different prescription drugs are being used to help people with social phobia. Certain anti-depressants, anti-anxiety medications, and beta-blockers help sociophobes to balance certain brain chemicals and reduce instances of having panic attacks during periods of heightened anxiety.
Counseling, or talk therapy, helps people with social anxiety disorder by teaching them how to react to situations that trigger their anxiety. Therapists help patients confront their negative feelings about social situations and their fear of being judged. This helps patients understand how their thought patterns contribute to the symptoms of social phobia and gives than an idea on how to change the way they think to make the symptoms begin to lessen.
Being diagnosed as a sociophobe doesn't have to mean you have to stay as one. It is nothing to be ashamed of and should be tackled head on. After all, with the presence of advanced medicine and a good counselling session, you'll slowly be able to outgrow this mental condition and socialize and function normally within a group without being too anxious.
Both Michael Sanford & Abbey Grace Yap are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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