Day trading in is a specialist job. The temperament and skills
are different from a normal investment approach. Day trader comes in varied
forms. Each of them is different. It is essentially this difference of opinion
over the same set of data that results in a trading market.
The trader can choose to trade in any stock, commodity or
instrument. For the sake of simplicity let’s take the normal share trader. A
day trader enters a trade and exits it in the same day. It is day in and day
out trading. A type of day trader called scalper enters in to hundreds of
trades a day to take advantage of small price changes. Some others wait for a
certain level of price change to happen before exiting the position taken. Some
traders play only in a select set of stocks. While many others go with buzzing
stocks. What ever the strategy is, the most important element for success is
your ability to be in disciplined in following a trading strategy.
Earlier it was very difficult to get proper information at
the right time. With the advent of internet, availability of information is
easy. The time and cost taken for executing a trade has also came down
drastically. The trader can trade in New
York Stock Exchange, NASDAQ as well as regional exchanges. The book describes
further the various techniques used in day trading, the different type of
players in the market, technical tools etc.