Day trader
Encyclopedia : D : DA : DAY : Day trader
A day trader is a very active trader who holds positions for a very short time and makes several trades each day. This aggressive investment style is called day trading (other styles include swing trading and trend trading). Generally, day traders are individuals who are trying to make a career out of buying and selling stocks or other securities very quickly, often making dozens of trades in a single day and generally closing all positions at the end of each day. However, many day traders are professional bank or investment firms employees working as specialists in equity investment and fund management.
Day trading can be extremely profitable and high-risk profile stock traders can generate huge percentage returns even overnight. Day trading is however a mentally and psychologically challenging activity and is by no means meant for everyone. Many day traders use computers, technical analysis software and the Internet as their main working tools. Day trading can be costly, since the commissions and the bid/ask spread add up when there are so many transactions.
See also
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