Making Money Through Day Trading Online

Making Money Through Day Trading Online
Day trading refers to​ the​ buying and selling of​ financial instruments like currencies,​ stocks or​ futures contracts,​ on​ the​ same trading day .​
This type of​ stock investment involves a​ lot of​ risk .​
Day traders carry out day trading by purchasing and selling stocks rapidly on​ the​ same day .​
Securing quick profits through day trading is​ based on​ the​ hope that the​ value of​ the​ stocks will continue to​ rise or​ fall in​ the​ short period when the​ stocks are held,​ before being sold .​
Some feel the​ traditional rule of​ settling the​ trade before the​ market closes,​ may go against the​ market wisdom of​ letting the​ profit run .​
However,​ this helps the​ day traders in​ avoiding the​ risk of​ price gaps .​
Price gap refers to​ the​ difference of​ price between the​ last close and the​ opening next day.
Profit making through day trading online:
Day trading can be very profitable due to​ the​ rapid returns .​
Traders willing to​ take high risks generate huge returns with day trading .​
Earning huge profits takes a​ couple or​ minutes or​ hours .​
The advancement in​ technology and electronic communication,​ especially the​ Internet,​ has contributed a​ lot to​ its popularity in​ recent years .​
Initially,​ day trading was limited to​ professional traders of​ financial firms .​
It used to​ be a​ marginal form of​ trading stocks for the​ elite group of​ private investors .​
Today,​ even casual traders indulge in​ day trading to​ make a​ profit .​
Popularity of​ the​ Internet has triggered off the​ swift flow of​ information,​ at​ a​ click of​ the​ mouse,​ making day trading all the​ more easier to​ execute.
Online day trading strategies for quick profit:
These are five day trading strategies that every trader should keep in​ mind:
Follow the​ trend: Usually,​ day traders assume that the​ steady rise in​ financial instruments will continue to​ do so and vice versa,​ in​ the​ case of​ a​ decline .​
All trading time frames use ‘trend following’ .​
Trend followers purchase a​ rising financial instrument or​ they sell the​ falling ones,​ short .​
This is​ done with the​ assumption that the​ trend will continue.
Range trading: In this strategy,​ rising as​ well as​ falling stocks are brought near to​ the​ lowest identified price and sold,​ once it​ hits the​ upper range.
Scalping: This strategy is​ also referred to​ as​ spread trading or​ quick trade .​
It involves the​ settling of​ trade within a​ few minutes or​ even seconds.
Playing news: the​ playing news strategy is​ considered to​ be most popular in​ the​ realm of​ day traders .​
It involves the​ purchase of​ stocks that offer good returns and selling of​ stocks with bad returns .​
The implementation of​ this strategy provides a​ good opportunity for quick profits.
Despite of​ the​ profit making strategies and popularity,​ day trading is​ not easy .​
It involves huge risk factors and according to​ statistics,​ 80-90% of​ day traders lose money in​ day trading and only 20% gain .​
It is​ an​ expensive and stressful,​ full time job,​ but if​ you are disciplined,​ a​ quick decision maker and can maintain good risk and money management,​ then you have strong chances of​ earning profit by day trading online.

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