Day traders are those people who deal with shares on day to day basis with the sole objective of making some quick easy money. Day traders are those short term buyer who indulge in buying and selling of shares and stocks and keeping a close watch on the price fluctuations of the market.
The day traders generally close up the transactions at the end of the day so that their risks are minimized for the next day. Nobody knows how the market will open the next day and what will be the prevailing price of various securities. This a way of managing risks when the stock market shuts for the day. At times if there are great fluctuations they may even close the deal within minutes of buying the shares and thus making a quick profit.
There are estimates that about 2, 50,000 people operate from home.
However in spite of tall claims no one really knows whether the day traders finally make any money or not at the end of the day. Nobody really publicly announces his balance sheet at the end of the day and there is no available statistics regarding the number of day traders operating in the market.
Most studies have pointed you the fact that the day traders on the whole lose money in the stock market but there are stray instances of successful trading too. The percentage of day traders losing money is higher in cases of those who are new to it. Apart form this there are some firms where day traders lose money for unknown reason. Only a small number of firms make little money and a very small percentage of day traders actually make big money.
Statistics also point out to the fact that those day traders who operate from home tend to lose more money than those who operate through a professional stock broker’s firm.
Making money by day trading has nothing to do with intelligence. No matter how much you study the trends and the various financial reports, it is purely a matter of luck in the end. There are so many unforeseen factors which influence the value of stock that no one can accurately predict its future swing.
Paul Ingersole is an Australian based business person who loves to write.Visit Paul’s website about finance today. http://www.creditcardresponse.com Article Source:http://www.articlesbase.com/currency-trading-articles/do-day-traders-really-make-any-money-1541034.html
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