Day Trading Online

Written by Erin Jones
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Most day traders execute their trades online through one brokerage house. There are many online brokers that promise the fastest executions, but is this your primary concern? If you answered yes, you may be forgoing better prices for faster trades. The bottom line is you are trying to achieve the best price, regardless of time.

Day Trading Online for Greater Profits

The fact is that most online retailers really couldn't care less about your execution price. Their main interest is speed and collecting their commissions. Most large institutional and professional money managers will forego speed and shop for better prices from different inventories.

Most traders fail to realize that they are purchasing a stock from an inventory and that there are more inventories to choose from. Your first question to your online retailer should be about where it purchases its stock. Savvy investors should then look for trading programs that buy from different retailers. As a day trader, you can diversify your pricing by buying pieces of stock from a few different retailers. The savings may add up to only a few cents, but multiply that by days and then years and compound those numbers and you end up with a huge difference. This is, of course, why institutions use this method.

Most traders are simply unaware of the guts of the financial markets, but don't let their ignorance affect your trading techniques. As a day trader, you need to exploit every area. Again, successful trading requires you to do things differently and better than the rest of the investment community.


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