Posted on August - 18 - 2010
Day Trading 101: What Every Rookie Should Know
Day trading can be very profitable if you know what you are doing. If you are interested in starting a career in day trading, here are things that might be useful to know. What is a day trader? A day trader is someone who buys and sells financial instruments within the same trading day. Here are common examples of financial instruments that day traders deal with: • Stocks. These are shares in the ownership of a particular company.
• Futures. These contracts allow a buyer to purchase a certain thing for a certain price at a certain time in the future.
• Derivatives. These are contracts, which have their values derived from the price of other variables like stocks, bonds, money market instruments, and other cash market investments.
• Options. An option is binding contract that gives the buyer the right (although not the obligation) to purchase or sell an asset at a specific price on or before a specific date.
•Currencies. Euro, yen