• Trading
• Day trading
• Swing trading
• Trading techniques

• Day trading

It is an investment technique in stock exchange which consists in unbuckling its position in a day. The day trader buys and sells stocks in the same day. He therefore never keeps positions overnight. It is necessary to have a portfolio completely liquid during the closing hours of the market.

What is certain is that day trading is not an easy way to get rich. It is the long working hours associated to a high risk to lose a lot. It is a practice where the number of winners is extremely low. The day trader will content himself with earnings from 0, 5 and a few percentages on each transaction. Some investors then pass several dozens of orders per day.

A yield of 0, 5% is most of the time widely enough for this type of investor.

The day-trading is not that easy and each successful operation requires essential elements:

- time to select the most interesting values.
- money for the investment ; the minimum sum to practise day trading is not very important. What is best to start with a starting capital that you take the liberty of totally losing?
- having an account at a broker: many brokers are ready to pass your orders for a commission. Do not look at the brokerage fees as the only essential element to choose a broker. The speed used to pass order should also be taken into account.
- The computer and an access to internet
- Strong financial and stock-exchange knowledge, and nerves of steel.
- A fast and capable broker. Golden rule : patience, discipline and flexibility.
- Real time market price.

Indeed, once the decision to buy or to sell is taken, your order must be rapidly registered on the market. In order to do so, you have to open a stock-account at an online broker. He is the one in charge of transmitting your order from your personal computer or your phone to the market for a commission (brokerage fee). The success or the failure of your operation depend on the rapidity of the execution of the mission.

One of the most important rules of Day Trading is the following: you must always enter an order "Stop Loss" immediately after the opening of each new position. It is an order that will automatically go off at the market price you will have specified.
This type of order can be used to enter "long" trades (rising) but it will mainly be used to protect your positions.

The second most important rule in Day Trading: you must always close all your positions before the end of the day.