A Beginner's Guide to Day Trading Stocks

Day trading stocks is a risky pursuit, but one that can pay off big time. Day traders buy large quantities of stocks and sell them in the same day. Imagine someone sitting by a television or computer watching stock quotes stream by, and you've got a look into the life of a day trader. So why do people day trade at all? Let's take a look:

Day trading can make a knowledgeable investor a lot of money in a very short time. However, because you're trading such large quantities of stocks, you will need a good deal of capital to get started. No one should even consider day trading without at least $20,000 to get them started.

Let's look at a theoretical day trading transaction:

9:00 AM -- Day trader purchases 1000 shares of ABC stock at $1.00 per share.
9:07 AM -- Day trader sells those 1000 shares of ABC stock at $1.20 per share

The day trader has now made a profit of $200 in seven minutes. This procedure is repeated as many times throughout the day as the trader sees fit.

It may sound easy, but it can be extremely risky and stress inducing. After all, a drop of only a few cents can mean big losses for a day trader. Even a short trip to the restroom could mean that you'll miss the perfect opportunity for an ideal trade. There are day traders who've made and lost thousands of dollars in a matter of hours.

If you're ready to accept a level of risk and want to try your hand at day trading, it's highly recommended to obtain the expert advice of a professional day trader to assist you in your quest. There are lots of informational products and services that can help make the difference between making profits and experiencing losses.

One such product that's highly recommended for anyone interested in day trading stocks is Day Trading Freedom (http://www.day-trading-freedom.com/?hop=0). You'll learn some low risk methods of day trading as well as what distinguishes successful day traders from everyone else. You'll also be taught how to analyze a chart, manage your risk, and how to use different types of orders to maximize your profit and minimize your risk. Some people might be wary of purchasing a product like this, but honestly, shouldn't you have as much expert information at your disposal as possible? It's certainly better than entering the risky day trading world uninformed.

Copyright 2006 Jim Sterling - All Rights Reserved

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