| With the technology boom that has changed the | | | | Range trading is another tool used by day traders. |
| way business is done across the globe, one | | | | This is the practice of buying and selling stocks once |
| unintended result has been the rise of day trading. | | | | they reach their respective highs and lows. The |
| Day trading is a risky and stressful form of trading | | | | trader figures that a stock that is headed up will |
| that involved buying stock and selling it within one | | | | continue to go up, but only until it reaches a new |
| days time. It's thought that if this is done enough | | | | high, and then it's due to go back down. The same is |
| time, with the right foresight and financial advice, that | | | | thought for stocks headed the other way. Once |
| a person can make quite a lot of money each day. | | | | they reach a brand new low, they tend to rebound |
| Day trading wasn't even an option before the 1990's. | | | | and head back up. |
| Here's why. | | | | Playing news is another common tool of the day |
| Back before the computer age allowed instant stock | | | | trader. The technique is exactly what it sounds like, |
| buying and selling, the financial settlement period use | | | | buying stock that has just released good news and |
| to take much, much longer. It was possible to buy a | | | | selling stock that has just released bad news. |
| stock, and not have to pay for it for another 10 | | | | While none of these techniques are guaranteed, day |
| business days. It was common practice in those days | | | | trading is increasing in popularity every year, and |
| to try to sell the stock for more than it was worth | | | | while the potential for significant loss is very real, |
| before you had to pay for it in an attempt to make | | | | many continue to walk the tightrope that is day |
| a profit. Many traders who had no actual money of | | | | trading. |
| their own would make their livings this way, and it's | | | | The preceding is the second in a series of articles |
| obvious how dangerous this was. | | | | based on the New York Stock Exchange. Many |
| A day trader has many different strategic options | | | | people ask why a company that assists individuals in |
| that he or she can follow to try to make a profit. | | | | obtaining unsecured lines of business credit would put |
| The first is trend following. This is a tool that is used | | | | out artcles of this type. The simple answer to this is |
| by all investors and its simply the idea that stocks | | | | because many clients use a portion of their lines (or |
| that have been going up will continue to go up and | | | | the profits their lines create) to dabble or invest in |
| stocks that have been going down will continue to go | | | | the stock market. We feel if this is what a client will |
| down. Obviously, this isn't always the case, which | | | | be doing, we want them to be as fully prepared as |
| makes trend following a dangerous method to base | | | | possible. |
| all of your day trading investments on. | | | | |