As implied by the name, day trading entails short term purchases and sales of market securities for the purposes of making quick incremental gains. In the day trading world, long term consists of 30 minutes and stocks are purchased not for their fundamentals but for their momentum. A good trading day is determined by the level of market volatility.
Day traders have the capability of making or losing hundreds of thousands of dollars each day.
This unprecedented access to the markets and the opportunity it represents has contributed to the increase in the number of people buying into the stock market. With the impact that day trading has across the country, the pros and cons of the practice are definitely open to question. Mary Naber and Scott Fehrenbacher give their views of the debate and you are encouraged to come to your own opinion. Today, Scott Fehrenbacher s writes of the Pros. The PROS of Day Trading Without it, our economy would not be as robust as it is.