day trader


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Day Trader

An investor who makes many trades throughout a trading day, buying and selling securities in order to profit from short-term changes in prices. For example, a day trader may buy Stock A at $15 per share because he/she believes it will be $25 a few minutes or hours later. The activities in which day traders engage are high risk because there is no guarantee that the price will move in the desired direction. However, day traders provide a great deal of liquidity to the market.

day trader

A speculator who buys and sells securities on the basis of small short-term price movements. Day traders are thought to add a measure of liquidity to the market.

Day trader.

When you continuously buy and sell investments within a very short time, perhaps a few minutes or hours, and rarely hold them overnight, you're considered a day trader.

The strategy is to take advantage of rapid price changes to make money quickly.

The risk is that as a day trader you can lose substantial amounts of money since no one can predict how or when prices will change. That risk is compounded by the fact that technology does not always keep pace with investors' orders, so if you authorize a sell at one price, the price it's actually executed at may be higher or lower, wiping out potential profit.

In addition, you pay transaction costs on each buy and sell order. Your gains must be large enough to offset those costs if you're going to come out ahead.

References in periodicals archive ?
But there are huge differences between a professional day trader and the average person who updates his or her stock portfolio now and then through an account with, say, E*Trade or Ameritrade.
Day traders, who may buy and sell shares without even knowing what a company does, can cause huge fluctuations in stock price.
Unlike the day trader and the swing trader, who base their trades on chart movements, the position trader makes his trading decisions by analysing fundamental events in the markets such as policy changes, governmental decisions, interest rates, and unemployment data, among others.
Salsa-Dancing Day Trader, Analyst Charged for Insider Trading
The website is rich with information to help the day trader. The potential buyer of the company should have an intimate knowledge of the industry.
For a retail day trader, all costs are important and can become very big-commissions, maintenance fees as well as other fees (inactivity fee, fees for transferring money, etc.) are highly important, as they greatly affect the overall returns.
How will this impact the wealth of the area; the profit margins of developers, insurers, and reinsurers; and the decisions made by those who invest in such activities, including the day trader who owns an expensive beach house?
But, even the home based day trader, who enters orders manually, will see a huge improvement in their overall trading experience," continued Hazelcorn.
Yet the toothless FSA somehow found some bite when they came across an obscure Glasgow day trader called Barnett Alexander.
Most recently, he has gained experience acting on his own as a day trader.
The man loves action, can't get enough of it, as a day trader and racehorse owner.
Armstrong, then a 37-year-old day trader (and occasional union organizer) in Portland, Oregon, was a mainstay at the relatively ancient Web community The Well; he launched MyDD (short for"My Due Diligence") to follow a special 2001 congressional election in Virginia.