What is Stock Day Trading?

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Day Trading Definition

Stock day trading is growing more and more in popularity and this is due in large part to the expansion of the internet. The ability to day trade has become accessible to people that otherwise would have never been able to do so in the past, thanks to the availability of various day trading software platforms. It is also significant to tell you that there is a lot of difference between day trading in stocks and investing in stocks. This distinction is necessary to know before going into day trading pursuits.

Purchasing stock or series of stocks and monitoring the same, hoping that the prices will go upwards over a period of time is essence of stock investing. With various stocks comes various levels of risk, but the overall plan is to procure long term investments. With stock day trading, it is the inverse that is the case.

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Day trading is an inherently risky endeavor and as such requires an enormous amount of work to manage that risk. Image by warriortrading.com

On the same day stock day trading entails the process of buying and selling a stock. This is a very active and dynamic to make a profit. The Holy Grail of all day traders is to buy low sell high. In many ways this may open the door to big profits — or huge losses. Risk is not for everyone and stock day trading is inherently risky. You really need to be consistent with the risk to be able to handle the ups and downs of this process.

Day trading is an inherently risky endeavor and as such requires an enormous amount of work to manage that risk. Those that are willing to handle these spheres of the process will find the venture potentially rewarding. Are you up for the challenge?

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