Day Trading

Written by Michael Federico
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Day trading continues to become more popular as online stock sites upgrade their technology and offer their members more trading services. The professional stockbroker is, by no means, obsolete. Brokers continue to make a lot of money for their clients and for themselves. However, day traders have discovered that there are ways to play the market without the help of a personal broker.

Online sites used to allow people to perform only very basic trades. They could purchase and sell a certain number of stock shares and that was about it. Quotes and research were often outdated, and there was lag time between the request for a transaction and the actual execution of that transaction. People who used these sites were often losing money simply due to the fact that the technology was lacking. Sites now offer trading for stocks, options, futures, bonds, and more. The technology is state-of-the-art, and members have access to all of the latest quotes and information. They can track the performance of their portfolios online and they can even chat with market experts.

How to Start Day Trading

A number of sites do not charge a sign-up fee. Many do not require a minimum amount for trades, either. This means that a person simply has to enter some basic information online to get started trading. It is often possible for a person to make his first trade within minutes of signing up with an online broker.

It is unwise for a person to think that because trading online is cheaper than trading with a brokerage firm that it does not come with many of the same risks. Granted, a person will not be forced to pay high commissions or trade fees, but an unwise or unlucky trade can still cost someone a lot of money. Before entering the world of day trading, a person needs to be aware of all the risks involved and he needs to find a service that can offer him help if he needs it.

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