An Introduction To Day Trading
Author: Ricky Lim

Many people often get confused by the financial terms such as
currency, forex exchange, trading etc. It's a big complex
financial world and one of the new trading concepts is day
trading.

Day trading in its simplest term means buying and selling
securities, stock and other financial investment within a
single trading day. It covers a wide variety of financial
products such as stocks, currencies, forex, equity index,
futures and commodities.

The financial products that are brought are only held with a
trading day and must be sold at the end of a trading day

Due to the short time period in which to buy and sell stocks,
day trading is considered risky. If you are interested in day
trading, be prepared to have sufficient capital. You need to
purchase at least 1000 shares of a stock. Be prepared for this
capital to be expendable.

Although day trading is risky, it does have big rewards if you
know how to play in this game. Many day traders never allow
themselves to get emotional with any one stock. They should
know when to cut their losses when the need arises as well as
able to analyze the current market trend particularly in the
short term.

One advantage of day trading is that the intraday margin is 50
to 1. That's means you are allowed to trade up to 50 times your
initial capital.

So what if you do not have the necessary capital to invest in
day trading. Thankfully, you could try day trading currencies.
Trading currencies requires less capital. You only need a
couple of hundred dollars to be able to open a forex mini
account.

One major disadvantage of day trading is the stock market is
only open for about 8 hours each day. However for currency
trading, the forex market is open 24/7. That means you can
trade just about any time of the day.

Another advantage of day trading currencies is that most day
traders get an intraday margin of 4. That means with the same
capital, you can trade up to 4 times your capital. For example,
if you have $10,000 as capital, you can trade up to $40,000.
This gives you more leverage if you decide to buy higher price
currencies.

Day trading currrencies are also easier to monitor and predict
compared to stocks as there are less of them and the factors
influencing global forex market are lesser

In day trading, you can lose big as well as win big all in a
single day so I would not recommend anyone to take up day
trading until you have sufficient experience and knowledge in
the stock or forex markets. Wise and quick decision making is
needed as well as the usual stock research analysis, market
analysis etc.


About The Author: Ricky Lim runs a day trading guide site.
Visit his site today at
http://daytrading.onlinetradingpedia.com for more info on how
day trading works and day trading training software.