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Although Stock Day trading has been said to be controversial and risky by many, there are still those who are able to successfully profit. Stock Day trading simply means that a stock transaction is completed during market hours. This means that no positions are held overnight. Some traders consider not holding stock overnight to be less risky. So what are some of the criteria that day traders might look for in the stock? Right off the bat I'd say that they'd look for a certain amount of volatility and also a certain amount of liquidity. One popular criteria in volume has been that the stock must trade at least 500,000 shares daily. Another popular criteria is that the stock must have at least a range of two dollars during the day. As stated before, day trading can be risky. But the truth of the matter is that all trading can be risky. The SEC pays close attention to day trading, because there has been so many instances in which traders have lost large sums of money. The promises of huge an easy returns coupled with some greed and inexperience has left a bad taste in the mouth of some who have been involved in day trading. Some have thought that day trading was actually something which was unethical or illegal. But this couldn't be further from the truth. Day trading has simply come under the scrutiny of the SEC, because it can be risky...couple that with the fact that there are so many advertisements out there for day trading get rich quick schemes that are very misleading. Some are simply flat-out false. In day trading, as with any trading, one should only risk capital that one can afford to lose... In other words, day trading with the mortgage payment money is completely out of the question. Day trading can be very exciting and very profitable. Before you become involved in day trading prepare yourself to become successful. It'll be important that you take your time and do not dive if headfirst into the arena of day trading without the proper preparation.
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