November 1, 2008
What do day traders do? Do they seek lows and highs of a day do they hold stocks for several days sometimes?
skahhh asked:
and or do they short or buy puts and calls? What is the defined rate and trading strategy of a day trader? Do they look for news or how fast a stock is rising? What?
and or do they short or buy puts and calls? What is the defined rate and trading strategy of a day trader? Do they look for news or how fast a stock is rising? What?
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Comments on What do day traders do? Do they seek lows and highs of a day do they hold stocks for several days sometimes? »
All of the above
There are many different styles of daytrading. Some people trade on news, some people trade on volume, some people trade momentum, some people trade on technicals. But one thing that all good daytraders have in common is, they never, ever, EVER hold a stock overnight.
The traditional definition of a day trader is one who has a 100% turnover rate each day. That means that he/she will buy and sell all shares of a stock before the trading day ends.
A swing trader is a person who holds onto shares for a couple days to a few months.
A position trader is one who can hold onto shares up to a year.
An investor is a traditional long term position holder buying and/or holding shares for several years.
All of the above people are investors more or less it is only that there time horizons are different. All types can make any of the plays/orders you mentioned but again their time horizons are different.
Also of course day and swing traders are almost always technicians i.e. they do no fundamental analysis simply because there is no time to do so. They rely on stock (price) charts looking for trends and indicators.
My $0.02
all of the above.
In my experience, and according to an insider at my brokerage, what most day traders do is lose money.
This tutorial may help you:—You-Need-to-Keep-Cool&id=771401
I Day Trade Penny Stocks With a Discplined Strategy:
Here’s what I would do: Play the chart. The highs and the lows. Stocks go up and stocks go down, so your strategy is to first have a few companies checked out that you believe are legitament, (MINIMIZE YOUR RISK) then watch for the stock to hit around the recent low, then when news comes out or good things are announced and you are up enough to make a considerable profit sell half. If it goes higher sell the other half, it it retraces buy it back again at the low, then sell again when it goes up. The good thing about penny stocks is that even though they are high risk, if you are a disciplined trader, they can yeild high rewards. Never buy more than the average daily volume that the stock trades. Never be greedy, never look back, and if you have strong gambling insticts, DON’T DO IT. Must stick with a disciplined strategy and NEVER INVEST MORE THAN YOU CAN AFFORD TO LOOSE.
Good Luck, Buddy!