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Day trading is a term used to describe speculative trading in the financial markets where positions are liquidated at the end of each day.

The phenomenon of day trading, as it is widely understood, emerged in the late 1990s at the start of the dot.com boom. The availability of online trading and information tools combined with rising stock prices encouraged large numbers of individual investors to try day trading. But the majority abandoned day trading when the bubble burst.

Individual investors are now returning to the equity markets and increasing numbers are day trading, but without the frenzy of earlier times. Day traders today have access to more sophisticated online tools and are broadening their trading activities. Day traders now trade in derivative and foreign exchange instruments as well as in the cash equity markets, although equities trading remains their principal focus.

Day traders need to monitor price movements and trading patterns very closely. Because seconds often count in day trading, they need professional-grade information services that provide real-time market data and news coverage of the events that drive prices. Day traders also need analysis tools to spot trading opportunities and help them make decisions. With their short time horizons, day traders use technical rather than fundamental analysis methods. They use charting tools to study recurring patterns in prices, in price trends, and in their speed or momentum to identify buying and selling signals.

Most day traders concentrate on only a small number of instruments and want to avoid information overload. They look for services that allow them to find information quickly and set up personalised screen displays. These enable them to focus on the instruments they are trading and to react quickly to price movements.

Reuters provides information and analysis tools to meet the needs of professionals and individuals trading in the financial markets. Reuters products range from the most sophisticated global offerings to those delivering smaller sets of information and functionality. Reuters has introduced online delivery options for many of its products, including its premium information product. Online delivery has enabled customers without powerful market data systems to take these products for the first time. They are now available to individuals, such as day traders, as well as to financial professionals.

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