Lets start by discussing what exactly day trading is. A day trader is a person who will buy and sell financial instruments over a short length of time, a day. By beginning at the start of trade, but having all your positions closed by the end of trading, the day traders ensure that there is no fluctuation in the market overnight which pose a risk to their capital. They simply begin again with every day.

There are two main types of day trader. The first was once the most popular kind, but this has began to change. An institutional day trader, is someone employed by financial institutions to complete their trading for them. These are institutions such as banks or investment firms. With their large amount of capital, and many available resources. This gives an institutional day trader the advantage over a retail day trader.

With the internet now able to be a host to the financial market, retail day traders have become much more popular. These are day traders like you and I, who work for themselves, using their own capital. Now, retail day traders, are likely to be able to make a substantial profit, and some day traders will give up their jobs and are able to make a living by day trading alone.

When you begin day trading, it is best to look around and carefully form your own strategy. Some day traders will only trade during the first half hour, to few hours of trading of a day, while some will trade throughout the entirety of the day. Each have their own specific trading strategy, which they always follow.

'News playing' is one such strategy of the day trader. It is perhaps one of the most important one. Day traders will sell stocks which have announced bad news, and similarly, buy stocks which have announced good news. This means that they will minimize loss, and maximise profit, respectively. However, as you become more experienced within day trading, you will learn that occasionally, the market may not follow the announced 'news'.

People are often attracted to day trading due to the ability to buy a large amount of profit. However, it is important to remember that day trading is just like gambling, in fact day traders are often called bandits or gamblers. You can win big, but can lose big too. Find a good strategy if you are going to trade alone.