Day Trading

The book I read to research this post was Day Trading for Dummies which is an excellent book which I bought from kindle. You might be interested to know I've a post on candlestick charting at http://claireabella29.com/
Candlestick charts can help you predict the kind of market for a particular product like a type of commodity or shares etc. Day trading encompases a lot of different types of trading including things like options, futures, shares, currency and commodities. It's called day trading because you often buy and sell your stake in the same day. Some people trade on behalf of a company which offsets some of the risk but many work for themselves. There are two types of trading, investing where you benefit when the price rises and hedging where you benefit when the price goes down. Alot of the reasons traders invest in certain stocks are very subtle and many experienced investors would have difficulty explaining to a newbie why they invest in a certain item. As you get more experience you develop a kind of intuition. Sometimes if one company is being bought out for no apparent reason other businesses in the same industry will experience a surge in share price. It's just one of the quirks of the financial industry. Often investors are cautious every october because there have been several instances where the market has crashed in that month and people are superstitious. If you dabble in currency trading especially, you may find that because the market only adjusts slightly that you have to borrow large amounts of money to get a good return. The problem then of course is if the market experiences a downturn you may end up owing money. Although you can make a lot of money trading you can also lose a lot and for every gainer there is a loser that's the nature of the market. Often any gains are only short term and in one financial company they found every broker was making a loss. You definitely shouldn't spend more than you can afford to lose and at the very least you should do some research before investing especially if you are a newbie. Many brokers work from home online on a computer but in some cities there are trade arcades where lots of brokers work from the same place.