A day trader is one who practices day trading. The definition of day trading implies that it is the act of rapidly selling or buying of stocks in one whole trading day. Day trading is a high risk investment with the hopes of gaining high profits over the seconds or minutes the trader owns a specific share before selling it. Day trading is being favored by online traders or casual traders (at home traders) because it is quick and challenging.
There are basically two types of a day trader one is the Institutional day trader and the other, the retail day trader. The Institutional day trader is one who trades for a financial institution. He is like an employee of that financial company. An institutional day trader trades large amounts of capital and handles huge, sophisticated accounts dealings.
The Retail day trader is one who trade on his own accord and his own finances. He is the boss of his own game therefore is not answerable to anyone should he face losses in trading. The good thing about being a day trader is one gets to keep the profits for him and he can transform his home into his office, coming to work in his pajamas.
Coming from a retail day trader who has been in the business for 10 years, there are hardships that retail day traders face (along with the exhilaration of amassing great profits). Day traders tend to get addicted to the game of day trading because of its unpredictable nature. There are also times that they tend to experience health problems often associated with sitting in front of the computer too long.
Being a day trader is an ideal profession for anyone who wants to be his own boss and who would like to work from the comforts of his home. In this way, you get to be totally in control of your finances and be creative with it. You can easily manage your risks by setting boundaries on how much you are willing to work with.
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