The basic premise behind why the stock market exists is because companies need money to grow. A private company turns into a public company and that is when a company first appears in the stock market.The stock market can be compared to eBay. Eventually a company gets so large that they stop lending money from their friends, local banks, and family.
They go public to receive a cash infusion they need to keep growing and compete in their industry. The left over shares have value and the general public decides what that value is based on the stock market. One random example would be if a certain company goes up during a certain time of year.If we assume that Apple will make more sales during the holiday season then we may be able to assume that its stock price will go up during that time of year.


Instead I turn on my computer and begin looking at a chart, do a few minute pre market analysis, and begin trading.Most people that we call day traders look at the market which strictly technical analysis. The only difference between the three is the amount of time they are involved in positions.Scalper TradersProfessional day traders that make money in the stock market with high frequency and lower profit are called scalpers. The goal is to take advantage of small inconsistencies in the market in addition to quick movements (changes in value in a matter of seconds or minutes).A scalper may only be in a position for five or 10 seconds or possibly a minute.
A scalper also tends to place a higher frequency of trades and as their profit is normally lower per trade. Our live classes are normally a few hours as well since the best activity in the markets come within the first few hours.Swing tradersProfessional day traders that make their money swing trading involves a much longer period of time. A swing trader uses fundamental or technical analysis but stays in trades over a few days or even weeks.


If we are estimating the value on something we can also estimate that the value is going down and make a profit on it.Day traders can actually make more money when the market is going down, when the economy is in a recession, or when there is a crisis. One of the reasons I love to make a living day trading is because we actually make more money and an economic downturn and a crisis than we do when things are going well. A bit of novice background of how I make a living day trading & traveling around the world.



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Comments

  1. Ayka17

    Dollar, Euro and British Pound $one hundred and can earn $one shopping for.

    02.02.2015

  2. Rengli_Yuxular

    The manner in which costs have changed as an method of forecasting.

    02.02.2015