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With more and more people waking up to the world of stock market, the thirst for knowledge in the same field has increased at a pretty good level. More people want to know different types of investing and different theories which can help them win more profit by selling their stock. One such type of investment is day trading . Now many people, mostly beginners dont know what day trading means and what are its advantages and disadvantages.

you dont get rich in a night and everything takes time, hard work and most importantly patience, you must have heard it several times from a lot of people who advice you on investing and unfortunately they are right, if you are making an investment it does not guarantee you 100% profit that will turn your life upside down in one night. Though its not always like that, some people do make a good amount of investment and get a pretty good profit in return but for that you need to have experience, proper help and knowledge.

Let us understand what day trading is: it is buying and selling of securities within a day. In day trading traders dont keep stocks or securities for days or even for a night. The idea behind day trading is to buy stocks and sell them the other moment. Day trader s work same as the other investors, the only difference is that even day traders buy low and sell high but they do in a very compressed window of time. For example, suppose a dealer buy 500 shares of some stock at 1:00 in the afternoon and at 1:25 price begins to rise then he/she will sell the shares, the trader makes average amount of money minus the commission. But dont stay under the point of view that day traders makes very less profit, always remember even though day traders sell their shares in a very compressed window of time but they increase their volume of trades in a day, so you can multiply their profit in a day.

Day trading has less risk in it only because of one reason: those traders can their shares the same day without keeping them overnight. it reduces risk because the prices change overnight, for example if a company breaks down into two and the news comes out in the middle of the night, it will obviously affect the price of the shares and traders are not always available to take an action before something happens and that is the reason why traders prefer to sell their shares within the same day.

Now there are many thing you have to keep in mind, it not an easy business, playing car race might sound easy when you play it on a PlayStation but when you get on the field you need that thrill, you need temperamental that is needed to become a racer, same way day trading may sound easy and quick but you need few resources and traits if you want to be successful in this field.

1. Knowledge and experience in the market: like mentioned above day trading is not easy, you need to learn and gain knowledge about the market and its fundamentals, you need to keep yourself updated regarding the market and the stocks by reading newspaper, blogs, articles or by watching news etc. without knowing how markets works and without gaining that intuition which you need to make you feel confidence about your decision its difficult to do day trading.

2. Capital: if you want to invest you obviously will need money to do so, if you want to make money you need to invest money, in day trading, traders usually borrow money (called leverage) to gain the profit and then they return the money borrowed, its risky but then it is always better to borrow money rather putting out your own.

3. A plan. if you are ready to trade you should be ready with a plan as well. you need to be very disciplined while trading and without a plan its hard to catch your goal, a plan lets you know what kind of investment you should make, it helps you to target market and make capital reinvestment.

4. Tools/technology: of course if you are jumping in the pool of day trading you will have to be alert all the time till you are holding the shares; you need to have a PC and another one as a backup, an internet connection for your PC or Laptop. You can also download and use software to research trades and receive information on trades and shares.

People who try day trading without keeping these things in mind tend to fail more often than the people who follow these things above. So dont be afraid if you have confidence on yourself and your instincts, just make sure that you do not expect everytime you buy a share. Its a good thing for beginners to keep their expectations low from day trading .