What is Day Trading and How Can I Profit From Trading Stocks.
 

Day trading is the buying  and selling of  stocks or other financial instruments for ones own account. Usually this is done quickly and often and for small amounts of profits (or losses) and is not a long term bet on a stock or commodity. Day traders could care less about the fundamentals of a particular financial instrument.  The goal is short term profits.  An active day trader may make as many as 100 trades per day or as few as two.  Day traders do not go home long at the end of the day. The leave their trading stations "flat" with no positions to worry about.

Day trading consists of the direct opening and closing of stock, commodity, or futures positions with the major financial exchanges, either using a computer on the trading floor of a branch office of a day trading firm, or using one's home or business computer to access an internet broker. Originally, in day trading, a day trader had direct electronic access to NASDAQ market maker or NYSE specialists. Today's definition of  day trading is watered down a bit and includes any trader directly trading through computer access to a trading platform that is directly connected to the various market platforms around the world.

With STOCKS the market makers are NASD brokers and dealers who buy or sell NASDAQ stocks for the accounts of others, engage in the securities business for their own proprietary accounts. In essence, the market makers are stock merchants. One NASDAQ stock will have many market makers who are continuously trading in that stock and thus making a market for that stock. On the other hand, one NYSE stock will have one assigned NYSE specialist. The role of the NYSE specialist is to maintain a fair and orderly market in that security. The specialist may act either as a broker and execute orders for other securities brokers or as a dealer in a principal capacity when trading for his or her wo0n account. The specialist will take on the role of a principal infrequently in order to maintain stock marketability and counter temporary imbalances in the supply and demand of that security. However, the traditional roles of market maker and specialist blurring daily.  Most stocks are traded in multiple markets at the same time.  To view all markets trading for a particular stock you would need access to LEVEL II quotes.

The day trader does not need a stock broker. The trader is not using a telephone to call a stockbroker, and the broker is not relaying that order to the brokerage firm's order desk. The clerk is not routing that order to the market maker. Computer efficiencies and improved trading programs have eliminated the need for this. 

The day trader can simply key in the stock symbol on a computer that has specialized trade execution software, press the appropriate function key, and buy or sell shares of stock on a major exchange. The software used by the day trading capable broker firms for order execution is relatively user-friendly and provides an efficient interface between the stock exchanges and the day trader.

Day trading is the buying  and selling of  stocks or other financial instruments for ones own account. Usually this is done quickly and often and for small amounts of profits (or losses) and is not a long term bet on a stock or commodity. Day traders could care less about the fundamentals of a particular financial instrument.  The goal is short term profits.  An active day trader may make as many as 100 trades per day or as few as two.  Day traders do not go home long at the end of the day. The leave their trading stations "flat" with no positions to worry about.

All successful day traders have a strategy that they tested and tested. They also stick to their strategy regardless. This may cause them to take losses. But successful day trading strategies will favor more gains than losses.

If you choose to be a day trader, then you must find a successful day trading program.