What Is Day Trading?
This is just a quick rehash of what Day Trading is: For more free resources, tips and strategies about day trading visit GeorgeKissi.com
Day trading (and trading in general) is the buying and selling of various financial instruments, such as futures, options, currencies , and stocks, with the goal of making a profit from the difference between the buying price and the selling price. The main types of day trading markets are futures, options, currencies, and stock markets. The more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures.
Day trading stocks, options, futures or forex is a challenging and potentially profitable activity for the educated and experienced investor, swing trader or day trader. The truth of the matter is that the market is a game of money flow played by the big players as they move money around from stocks, to options, to financial futures, and back and forth in a number of different ways, all in the pursuit of greed and large profits.
I typically do not recommend day trading for new futures traders or investors since it takes a lot of knowledge, experience and discipline to day trade futures successfully. The Advantages of Day Trading Futures is the fact that theoretically, no positions are held overnight when day trading futures. This should allow the futures day trader to sleep well at night knowing he has no open positions to worry about. I have to admit that you can learn a great deal about the futures markets in a short period of time from day trading. In essence you are rapidly accelerating your trading experience and knowledge by day trading futures contracts.
Disadvantages of Day Trading Futures You includes but not limited to loss of all capital, the need to be a very disciplined individual to be successful at day trading futures. To be blunt, most people who day trade futures do not last long and 95% of all day traders lose their trading capital and quit!
Best Markets for Day Trading Futures for many day traders is the E-mini S&P 500. It is a pure play on the stock market where futures traders can control about $75,000 worth of stock for about $500 in margin. The E-mini S&P futures are electronically traded, which makes trade executions very quick and highly liquid. The Dow futures, E-mini Nasdaq futures and E-mini Russell futures are also popular among futures day traders who focus on the stock market.
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