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What is Day Trading?

What is Day Trading?

If you are looking to get into the incredibly fun and rewarding profession of day trading, there are a few things you should know before you begin.

First of all, day trading is not for the weak stomach. Once you begin trading on the live markets (after you test your skills with dummy accounts for a year or two), you should realize that the best traders have absolutely no emotion about separating you from your money. You are not fighting the market or responding the information that you see on the TV or from other media sources; you are locked in a face-to-face battle with the trader on the other side of the trade.

You must also understand that your purpose as a new day trading professional is not to create profits for yourself; it is to act as a temporary market maker for a niche market in which you have better pricing information than the majority of the other participants in that market. The purpose of successful day trading is to more quickly facilitate the movement of securities from buyer to seller. You are basically taking the job of the market makers, which consists of the best traders running the best day trading software in the world. This is not an easy job to take, and they will not give it up easily.

In order to be successful in the world of day trading, you must definitely invest in the best trading software that you can get your hands on. You need a trading software package that has an execution time that rivals the market makers on Wall Street and you also need sources of information that you can trust in always.

You will find that the majority of the information that you received as a day trader is not helpful to you, although it may actually be true in fact. You will slowly but surely whittle down your information sources to a trusted few, and your strategy will become more and more focused on the industries in which you have a competitive advantage. This is what is necessary to become a successful day trader.

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