Created its seminars with the day trader in mind. Our courses provide day traders with effective tools, trading strategies and money management skills that can give them the edge in a rapidly changing trading environment. With the narrow margin for error and the steep learning curve that faces new day traders, an investment in trading education is essential for those who are seriously considering a career in trading. So important that an investment in knowledge should be made before any serious investment in stocks. The classic definition of a day trader is one who buys and sells stocks throughout the day but closes all positions by the market close to avoid the possibility that a significant price move on the next day's market opening will result in severe losses.
Day trading is done through specialized brokerage firms that cater to high volume traders.
Many day traders execute 50 to 100 trades per day. While these brokers provide tremendous research capabilities to their clients, they lack the speed of execution offered by the specialty firms and often trade against their customers by the nature of their market-making operations. In the past, day traders used their ability to rapidly and directly execute trades in order to gain advantage over professional market makers. Individual day traders were able to arbitrage inefficient and mispriced bids and offers posted by slow market makers. The gains per trade were small, eighths and quarters, but over the 50 to 100 trades of 1,000 shares each, the profits added up.