The main motivation for this style of trading is to make money every day so you don't sit on the shares , plus of course you eliminate the risk that the shares go down in value overnight. the motivation of this style of trading is to reduce the risk of holding a position overnight where the open price may have significantly changed from the previous day's closing price.
NASDAQ defined day trading by saying somebody is a Daytrader if he makes more than four buy and sell orders over a five-day period.
Prior to the year 2000 it was not uncommon for some of the most successful Daytraders to make more than a million dollars in a single day.
There were dozens of Daytrading Chatrooms where people were "told" what to buy and when to buy it. Some Chatrooms had more than 500 members. And most Daytraders, it is estimated as high as 99%, lost their shirt. One of the reasons they lost their shirt is because they could trade on Margin.
Trading on Margin means that the brokerage firm which executes your trades will lend you up to 5 times your investment. So if you had $10,000 in your trading account you could in some cases trade with $50,000.
However, if you lost on your trades, repayment was due immediately.
Since the heady dot com days of the year 2000 DayTrading has gone out of style and out of range.
Most brokerage firms have gone under or have consolidated, and staff has been reduced in the remaining firms by about 80%.
Trades that used to cost $35 to execute can now be had for as low as $4.-
Initially it happened because President Bush talked the economy down and Mr Greenspan kept on raising the interest rate to such a level that all optimism disappeared from the Market.
Up until this time like clockwork 2 or 3 days a week there were Stocks, mainly Internet Stocks, that would rise more than 30% early in the morning and then fall the same amount five minutes before closing so people could take profit.
If you were on the ball you could make a lot of money as a DayTrader.
You could also lose a lot of money.
Those days no longer exist.
It is very rare to see stocks vary more than 30% in one day so the profit potential first of all is not as great, and the ability to catch a percentage of the increase in the price of a stock has also lessened.
One of the reasons also is that Internet Stocks which were totally overvalued are no longer overvalued and as a matter of fact have risen much less than any other type of Stock.
Another reason is that there are very few IPO's and even Google's IPO did not take off for quite some time.
If it was not for the spectacular performance of Google , Internet Stocks lost more than 8% in 2005.
Even Ebay lost more than a quarter of its value.
However, if you are shrewd, you can still make money as a DayTrader but it ain't easy.
What do you think happens when a company invents a car that runs on water?
If you could get news about this company very early you could make a lot of money.
Not many people know that you can trade the NASDAQ Stock Market as early as 6 AM.
So if you are a Stock Market News Hound and like to get up really early in the morning and have nerves of steel you could buy the stock at 6 AM and sell it at 9.29 AM to everybody else starting a regular trading day.
This will not happen very often, the fact that there is spectacular news.
But if you are patient it may happen once a month.
Ordinary people can drive their favorite cars or ride in their most desired yachts only in their dreams. But come to think of it, one can actually make his dream come true today even without owning that sought after property. With car rentals widely available these days, an average person is given the opportunity to drive his dream car and ride on a luxury yacht.
Luxury vehicles
Whether you're traveling to a far place for a business trip or family vacation or simply just want to have the feel of driving a luxury vehicle, you have a wide array of models and brands to choose from at affordable prices. You can pick from the popular brands such as the Porsche, Jaguar, Cadillac, BMW, Mercedes Benz, Lexus, Bentley, Land Rover, Lamborghini, Rolls Royce and Chevrolet among many others.
The types of vehicles available in these car rental companies include sports cars, luxury sedans, sport utility vehicles (SUVs) and limousines. Sports cars are ideal for leisure driving while the SUVs are best for long distance traveling with the family or group of friends. Luxury sedans and limousines complete with chauffeurs are great service for weddings, proms or special formal events.
Boat rentals
People or families out on an adventure at the beach or lake need not buy their own boats if they wish to go fishing, kayaking, wakeboarding or canoeing. They can always rent out one at a reasonable rate instead of spending a significant share of their savings. At least by just taking advantage of boat rentals, sports enthusiasts and adventurous people including active families don't have to worry about storage areas and boat maintenance that could be quite costly on their part.
Charter yachts
Now, for couples and families wishing to have a quiet vacation, the sea is such an ideal place to be. Renting out a luxury yacht would be a good idea. The sea breeze and water are therapeutic and just floating on a yacht provides a romantic and relaxing experience for just about anybody.
Apart from vacationing, you can also hold special parties on this vessel complete with a crew for a unique setting that not all people are privileged to experience. Dining under the moonlight and stars while in the middle of the sea is surely an unforgettable moment.
So who says you can't have all the best things in life and live the rich and famous way for a day or two? Anybody is free enjoy the wonderful feeling of being behind the wheel of a luxury car or simply riding on one or savoring the sea breeze on a charter yacht. These all you can accomplish with the help of rental companies catering to land, air and sea vehicles.
Both Frank Vanderlugt & Rokai Kolam 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.