Simply put, day trading is the buying and selling of financial investments and securities within the same trading day. These financial investments and securities would include stocks, stock options, currencies, and contracts like equity index futures and commodity futures.

Trading, business and the financial market is a big, complex world. There’s foreign exchange, currency trading, and even day trading.

And perhaps, it is day trading that needs more than just a simple mention in the book, for one, foreign exchange and currency trading are relatively easy to understand, day trading is a whole new concept.

As opposed to swing trading where the stocks are held for a couple more days, the stocks in day trading are held only for the duration of the trading day.

Day traders buy and sell securities during the day, and do not hold stocks overnight. Anyone interested in day trading must have enough capital for him/her to be able to buy at least 1000 shares of a particular stock on a particular day.

Day traders should know how to cut their losses short.

A [...] Continue Reading…

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Do you ever wondered What is index futures trading?

Futures trading is often misconceived as a complex, high stakes and risky venture. This is far from the truth.

The misconception springs from the lack of the proper financial know how about the subject and a clear understanding of what it is for.

Index or stock futures trading is the buying or selling of a set quantity and quality of a financial instrument, which will then be delivered and settled at a predetermined time in the future at a price set during the time of purchase.

Institutional investors typically make use of stock index futures to hedge positions of the underlying stocks in their portfolio.

A futures contract therefore, is a type of investment instrument, in which two investors agree to negotiate on a set of financial instruments or physical commodities for delivery at some future date, usually three months, at a set price.

If you invest on a index futures, you are agreeing to buy something that is not physically there yet at a fixed price.

But participating in online futures trading [...] Continue Reading…

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