Day Trading:
When you Day Trade you can enter a position Long or Short for under 1 second, 5 minutes, 30 minutes, and hour or until 4:00pm that same trading day. A Day Trader will never hold a position overnight. Every day by 4:00pm they will be ‘flat’ meaning they will have no positions in the market and their whole account will be in cash… just waiting for the market to open the next morning at 9:30am. Their goal is to capitalize on intra-day movements and market momentum. Normally a Day Trader will use 1 minute, 5 minute and 15 minute charts as well as other indicators to help them make a trade.
An analogy I heard a Day Trader use once was: I am a little guy…Like a tiny fish I wait for the Shark to start eating then I go in and feast on the scraps. Translation… when you see Goldman Sachs & Morgan Stanley buying AAPL in large volumes Buy AAPL, then sell it for a profit very fast and get out of the way.
You can make fast money and lose your shirt…or both! All in the same day!
- Steve -
No comments:
Post a Comment