Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Day Traders
Day traders are basically the market markers. They create liquidity in the market by frequently buying and selling stocks throughout the day in the hope that the price of the stocks will fluctuate so that they can make profits with that fluctuation. Most traders buy stock and want the prices of a stock to rise so that they can make a profit, but some have alternate arrangements by following short selling of stocks to profit when their prices fall and purchase again at lower prices to make profit.
Day traders hold stocks anywhere from a few seconds to a few hours but at the end of the day they will always setoff their position before the stock exchange's normal closing time. They specifically control their activity to avoid risks arising from events happening after closing hours of the market. If they carry over the stock for next day they would be at risk of losing out on their gains due to negative news inflows on stocks, sectors or the markets. Therefore, the objective of the day trader is to benefit from frequent purchase and sale activities of any underlying stock in a particular day.
Day traders are further categorized into two different groups: (a) scalpers, and (b) momentum traders.
Scalpers: This group of day traders trading is like playing hot potatoes. Their activities are limited to the rapid and repeated buying and selling of a large volume of shares during a very short period of time, anywhere from a few seconds or a few minutes at a time. The group trades on those shares that have high liquidity and momentum in prices. New listing of shares is one kind of example where Scalpers are active. Their objective is to earn a small per share profit on each transaction at a minimum risk.
Momentum Traders: These types of day traders identify and trade stocks that are moving in a particular range during the day. Their objective is to buy stocks at the bottom and sell them at the top or vice-versa.
Question : (a) The role of the Public Expenditure Management System (PEMS) is to allocate and use resources responsively, efficiently and effectively'. Briefly explain the abo
Q. Can you explain Dispersion method? Dispersion method help to assert risk in receiving a return on investment. The greater the potential dispersion, the greater the risk. One
London Interbank Offered Rate (LIBOR) This is the base lending rate which is charged by banks in the London Eurocurrency market. LIBOR is the European equivalent of the U.S. pr
Net Present Value (NPV) : In this technique, future cash flows are discounted to the present and then compared with the investment outlay. The basic discount rate is generally
Limitation of profit maximisation -Quality of Benefits Probably the most vital technical limitation of profit maximisation as an operational objective, is that it ignores qua
Question 1: "The governance of modern states demands that a relentless struggle be waged against the scourge of corruption." Discuss. Question 2: Explain clearly how th
Investment intermediaries An investment intermediary includes finance companies, mutual funds, investment banks and securities firms.
Short sales : Short sales of a security means borrowing of an underlying security by an investor from other investors who are holding it (in Demat account) and selling it with
I just purchased a stock that would pay the dividends of the first four years as D1 = $0.65, D2 = $0.74, D3 = $0.79, D4 = $0.84. I also told that the dividends would grow continual
State about the Detection risk This is the risk that auditors 'substantive procedures don't detect a material misstatement in an account balance or class of transactions. It is
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd