How To Trade Futures

What Is Day Trading? - Plus A Look Into A Day Traders Salary
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What is day trading?

This is a pretty common question that many beginners are interested in knowing the answer to when they first gain interest in the stock market. A day trader is like an investor in the sense that he buys and sells stocks but he differs in that he only plans on holding them for minutes and sometimes hours.

A day trader never holds positions overnight. Instead they buy and sell during the market hours and make sure to close all of their positions before the closing bell. Therefore day trading is buying and selling positions in different equities for sometimes minutes at a time. It's a very different strategy than that of your typical investor who plans on holding for months and sometimes years at a time.

A day traders ultimate goal is to either buy low and sell high or sell high and buy low. They can take a position either long or short. A long is simply a trade that a day trader is betting will go higher in price while a short is a position that a day trader is betting will go down. Either is possible to execute in the live market.

Enough of the beginning jargon let's get going with the market recap.

In the pre-market the market seems to keep failing attempted pushes to the upside. But again anything can happen once the bell rings. And we did start the market with another attempted push to the upside which eventually fails.

So, here we are again going down and we get a quick setup that after a bit of consolidation pops straight down to our target. Eventually after a bit of consolidation we get another setup which just fizzles out.

Again we get another attempt to the upside and since I wasn't really willing to give it too much room I was stopped out for a small loss. But again I jumped back into another long on the basis of this apparent wedge forming on my chart. What can I say this type of wedge has worked time and time again and when I do see them in conjunction with other things in the market I'm all over the trade. that one was the last trade of the day and I was able to get a total of 2.25 points using the beginner's trading strategy.

Overall I finished up $875.00 on 1 contract. Not a bad day to add some money to a day trader's salary. I hope this gives you an idea as to what is day trading.