Thursday, 1 January 2009

Stay A Daytrader

With the new year started already, I am sure we will be hearing from lots of Stock Market Experts that this year is going to be a good year for the Stock Market and there are going to be lots of bargain shares (stocks) to be had if we do our homework properly.

Well, the opportunities may exist or they may not!

The essential thing to keep in mind is if you are a small investor (trader) you cannot really risk or tie down your small capital on looking weeks or even months ahead -- Instead as a small trader (investor), you would want to employ your funds in something, which would give you nearly an instant return on perhaps daily or at worst weekly basis.

So to achieve the above, you would really want to be a Daytrader and if you happen to have a margin account such as a CFD or a SpreadBetting account, you have the added advantage of both shorting the market or going long as and when you find the right trading opportunities - With short-term trading or daytrading you could virtually close your positions as soon as your initial capital or investment has shown a profit. In other words the flexibilities that daytrading offers you as a trader, should not be overlooked easily.

To stress the nicety of daytrading, let's take trading the Dow Jones Industrial as an example:

We all know that lots of professional traders trade the Dow Jones to make a good living out of .... and we also, know that on most trading days the Dow travels up and down on a certain range -- so if we got ourselves stuck on a long term position, we would consequently be missing on a lot of points which we would be making had we employed daytrading as a means of making our initial investment grew.

Happy Daytrading for the New Year.

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