Day Trading

As the name implies, day trading is the purchase and sale of a stock or security during the same trading day. This is a risky form of investment with the primary goal being the accumulation of multiple small profits that will together form large profits. Day traders assiduously follow the market hoping to spot price trends on which they can capitalize. The idea is to get "in and out" with a degree of profit.

The practice has not enjoyed a good reputation in the public eye and has often been synonymous with little more than gambling. Day trading as a "get rich quick" scheme has proved alluring to many with low cost trades and real-time stock information available via the Internet.

Where once stock market folklore centered on the stock tip from the shoe shine boy that catapulted a man to wealth, now the tales are of a day trader who got lucky. In truth, successful day trading requires a high degree of market knowledge, savvy analysis, physical and mental stamina, and an unusual tolerance for risk.

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