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.
Explain how the special drawing rights (SDR) is constructed. Also, discuss the circumstances under which the SDR was created. Answer: SDR was made by the IMF in 1970 as a new r
I am facing some problems in my assignment on the topic Preliminary Screening. Can anybody suggest me the proper explanation for it?
Tests in Investments There are many rules that specify how the past data of share prices can be used to obtain a clue regarding the future prices of shares. Such rules would be
Define the meaning of procurement Term procurement was used in a broad sense so as to include the whole gamut of raising funds externally.
a) On 1 st January 2010, Grimm issued 400,000 convertible £1 6% debentures for £600,000. The professional fees associated with the issue were £40,000 and the fair value of simil
applicablility of operating cycle of broilers[poultry] in uganda
How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth Plastics and give your views to increase the profit.
Why does the riskiness of portfolios have to be looked at differently than the riskiness of individual assets? The riskiness of portfolios should be looked at differently as comp
A campany estimate a cash requirment of 900000 the opportunity interst eate is 9% per anual the transaction cost for borrowing or withdrawing fund is 264.5
Aims of FSA The aim of FSA is to promote efficient, orderly and fair markets, and to help retail consumers to get a fair deal. In fact, FSA has set out its aims under three bro
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