David Cragg




Day trading is an investment style of buying and selling the same stock (or other investment vehicle) within a single day.  The HowTheMarketWorks web site provides new day traders a free safe platform to test and refine day trading techniques with fake money using real stock data.

Day trading has become quite popular with traders — especially with the more recent volatility of the market. Day trading can be very profitable – you can make a lot of money in a very short amount of time. Of course, you can lose money just as quickly.

One of the main challenges that proper day trading technique addresses is that stock prices usually change little during a trading day. To make a profit, day traders must use larger investments. 

 

Typically, stock’s price fluctuate only a few percent a day.  For example, if you invest $10,000 in the market and made a 1% profit, that would only be $100. But if you invest $50,000 in the market and got the same 1% return, you would make $500. That is also where the danger lies. A stock can drop very quickly as a result of reported bad news or something major happening in the financial world. As a result, your investment could drop 10% in the blink of an eye.  As a result, you would loose ten times your normal return of 1%, which would be $5,000 on the $50,000 investment.  The HowTheMarketWorks day trading accounts offer safety to test your stragegy using fake money with real data.

 You can sign up for our FREE risk free day trading accounts and practice your strategy until you feel confident to start investing your own money.  Learn more at http://www.howthemarketworks.com/popular-topics/day-trading.php.