Thursday, December 6, 2007

Why margin or day trading is best in present scenario

Sensex is hovering around it's life time high. Stocks are being traded at a price you wouldn't have imagined three years ago. Foreign investors are pumping in lot of money. There are rumours that illegal money is fueling this growth. So, it is a disaster waiting to happen that the stock market crashes.
The best option is to make use of the volatility of the stock market and indulge in day trading or margin trading. What is more is that you don't need to have complete money in your bank account to do day trading. There are various products.
example: In one product in order to do day trading you may just need a percentage of the actual value of the stocks. It ranges from 5%-21%.What is more you can do this trading online and you just have bother about it during trading hours.
An average investor can make INR 250 to INR 100000 every trading sessions.
Philosophy of day trading is to buy stocks in lower price and sell it in higher price or vice versa. This can also be called swing trading. Most brokers,however square off before the closing bell ,irrespective of whether you are making profits or loss. so you must make your move before this. Hence, while doing online trading you must ensure that you have a good Internet connection as well as back up.

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weewilikers said...

If you think day trading is smart , then you are a fool. Here is why: whether or not you use a stockbroker or online trading, you MUST PAY a fee for each transaction in and out.

This results into a function of loss on transaction and transaction earnings. The lager the transaction, the more cost effective you become and relatively less expensive each transaction costs.

This being so... it is the ordinary person to use day trading/short term gains as a viable solution.

I would not even think about day trading until I had reached a level of earnings that I could invest 7 million at least. Even then, you must know the market front and back. Only a person who graduates at the top of their class in one the best businesses school would conceviable be able to accomplish this.

In conclusion, day trading is for multi-millionaires andr fools.