Chapter 1:
Getting Started with Day Trading Strategies
Day trading indeed is an art of earning money. To put it simply, day trading
involves buying and selling stocks within a single day, before the market
closes for the day. This has become a popular method of trading, especially
for those who are looking to earn money quickly, without having to wait for
days.
About Day Trading Strategies
Day trading was generally perceived as a way in which people would
gamble away their money. However, this perception has changed in the last
decade or so. Day trading is intriguing, and this approach can help in
diversifying an investment portfolio. The rise of the Internet has also helped
in popularizing the idea of day trading. On-the-floor day trading has been in
existence for a long time and, with the advent of the Internet, off-the floor
day trading has become quite popular too. Day trading at present is much
different from how it used to be. As the logistics involved in day trading are
evolving, the misconceptions that existed about this are reducing as well.
Towards the end of 90s, there was an explosion of technology stocks on the
stock market, and this was followed by a wave of trading hysteria. This
ushered in the era of day trading. The stock market used to be majorly
composed of institutional and professional traders. With the advent of day
trading, anyone with a computer and a trading account can access the stock
market now. Many traders had quit their regular jobs so that they could
make it “big” in trading and earn some easy money. There was an explosion
of books and courses about day trading. Back in the day, the markets were
doing well and following the trend was the key. The strategy followed by
all the aspiring day traders was quite simple. They would find a volatile
stock on the market, leverage it with a considerable margin, and just let the
investment work its magic. Many started to believe that trading was as
simple as printing money. Trading arcades started gaining popularity, and
they offered a gathering place for day traders where they could learn, share
ideas and trade as well. These places provided the interested persons with
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