| Day trading most commonly refers to the
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| | Bush talked the economy down and Mr
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| practice of buying and selling stocks
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| | Greenspan kept on raising the interest
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| during the day so that at the end of the
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| | rate to such a level that all optimism
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| day you don't hold any shares overnight;
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| | disappeared from the Market.
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| you sell as many shares as you buy. You
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| | Up until this time like clockwork 2 or 3
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| make money on the difference between the
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| | days a week there were Stocks, mainly
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| purchase and sales prices.
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| | Internet Stocks, that would rise more
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| The main motivation for this style of
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| | than 30% early in the morning and then
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| trading is to make money every day so you
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| | fall the same amount five minutes before
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| don't sit on the shares , plus of course
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| | closing so people could take profit.
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| you eliminate the risk that the shares go
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| | If you were on the ball you could make a
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| down in value overnight. the motivation
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| | lot of money as a DayTrader.
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| of this style of trading is to reduce the
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| | You could also lose a lot of money.
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| risk of holding a position overnight
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| | Those days no longer exist.
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| where the open price may have
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| | It is very rare to see stocks vary more
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| significantly changed from the previous
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| | than 30% in one day so the profit
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| day's closing price.
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| | potential first of all is not as great,
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| NASDAQ defined day trading by saying
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| | and the ability to catch a percentage of
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| somebody is a Daytrader if he makes more
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| | the increase in the price of a stock has
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| than four buy and sell orders over a
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| | also lessened.
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| five-day period.
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| | One of the reasons also is that Internet
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| Prior to the year 2000 it was not
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| | Stocks which were totally overvalued are
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| uncommon for some of the most successful
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| | no longer overvalued and as a matter of
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| Daytraders to make more than a million
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| | fact have risen much less than any other
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| dollars in a single day.
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| | type of Stock.
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| There were dozens of Daytrading Chatrooms
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| | Another reason is that there are very few
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| where people were "told" what to buy and
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| | IPO's and even Google's IPO did not take
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| when to buy it.
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| | off for quite some time.
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| Some Chatrooms had more than 500 members.
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| | If it was not for the spectacular
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| And most Daytraders, it is estimated as
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| | performance of Google , Internet Stocks
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| high as 99%, lost their shirt.
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| | lost more than 8% in 2005.
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| One of the reasons they lost their shirt
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| | Even Ebay lost more than a quarter of its
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| is because they could trade on Margin.
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| | value.
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| Trading on Margin means that the
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| | However, if you are shrewd, you can still
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| brokerage firm which executes your trades
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| | make money as a DayTrader but it ain't
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| will lend you up to 5 times your
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| | easy.
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| investment.
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| | What do you think happens when a company
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| So if you had $10,000 in your trading
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| | invents a car that runs on water?
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| account you could in some cases trade
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| | If you could get news about this company
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| with $50,000.
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| | very early you could make a lot of money.
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| However, if you lost on your trades,
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| | Not many people know that you can trade
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| repayment was due immediately.
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| | the NASDAQ Stock Market as early as 6 AM.
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| Since the heady dot com days of the year
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| | So if you are a Stock Market News Hound
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| 2000 DayTrading has gone out of style and
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| | and like to get up really early in the
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| out of range.
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| | morning and have nerves of steel you
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| Most brokerage firms have gone under or
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| | could buy the stock at 6 AM and sell it
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| have consolidated, and staff has been
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| | at 9.29 AM to everybody else starting a
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| reduced in the remaining firms by about
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| | regular trading day.
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| 80%.
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| | This will not happen very often, the fact
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| Trades that used to cost $35 to execute
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| | that there is spectacular news.
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| can now be had for as low as $4.-
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| | But if you are patient it may happen once
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| Initially it happened because President
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| | a month.
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