Market Magic

Wanna be a day trader? Play safe to earn big bucks

BARUN JHA

'Extreme Caution' is the main mantra if you want to make some quick bucks in the stock market through day trading. As the name suggests, day traders buy and sell stocks at a rapid pace throughout the day and rarely hold any position overnight.

A typical day trader makes a career by making numerous trades in a single day, but squares off his/her position at the end of the day – meaning, the day trader does not hold any position in any stocks before and after the trading session.

The goal of the day trader is to capitalise on the share price movements within a single day and the gains primarily depend on the number and volume of trades made. Higher the number of trades and trading volume, higher is the profit made by a day trader.

But, at the same time, higher are the chances of making a big loss, as the day trading is mostly based on speculations and market timing, rather than investing with a proper planning.

However, day trading is still one of the few ways of earning some mega bucks in a short span of time in the stock market and this drives most of the naïve investors to fall prey to this high-yielding, but higher-risk mode of investing.

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posted by Arhaan @ 1:26 AM