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The Essentials of Getting Started with Day Trading

Day trading is a risky business. But, like any investment, the greater the risk, the greater your possibility of reward. If you're thinking about day trading, you need to understand a few essential details first, from the difference between day trading and investing to which day trading expenses you can and cannot deduct from your income tax. The information that follows won't tell you how to strike it rich with day trading, but it may keep you from losing your shirt — either to the stock market or to the SEC.

What Is Day Trading?

Day traders are different from investors in that day traders hold their securities for only one day. They close out their positions at the end of every day and then start all over again the next day. By [more…]

Who Regulates the Financial Markets?

In the United States, financial markets get general regulatory oversight from two government bodies: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission [more…]

What Is Arbitrage?

Day traders work fast, looking to make lots of little profits during a single day. Arbitrage is a trading strategy that looks to make profits from small discrepancies in securities prices. [more…]

When an Investor Might Want to Consider Day Trading

Many day traders are also long-term investors. Sure, they trade for the short term, but they regularly take some of their profits and put them toward investments that have a longer time frame. It’s smart [more…]

What It Means to Become a Pattern Day Trader

Many day traders lose money, and those losses can be magnified by the use of leverage strategies (trading with borrowed money), meaning that they can lose more money than they have in the quest for larger [more…]

The Language of Day Trading Profits

Like any specialized field, securities trading has a lingo all its own. Because day trading often deals with small shifts in the market, understanding the jargon of tiny price changes is important for [more…]

How to Figure Your Expected Return from Day Trading

Before you can figure out how to manage your day trading, you need to figure out how much money you can expect to make. This is your expected return, although some traders prefer the word [more…]

What to Do with Your Day Trading Profits

Day traders not only need to determine how much to trade with each order, but they also need a plan for what to do with the profits that accumulate. That’s as much a part of money management as calculating [more…]

Day Trading Expenses You Can Deduct from Your Income Tax

Day traders have expenses. They buy computer equipment, subscribe to research services, pay trading commissions, and hire accountants to prepare their taxes. It adds up, and the tax code recognizes that [more…]

Day Trading Expenses You Cannot Deduct from Your Income Taxes

Day traders incur some expenses that can’t be deducted from income taxes. It’s disappointing, but at least if you know what day trading expenses they are upfront, you can plan accordingly. [more…]

Online Information and Tutorials for Day Traders

The financial industry wants people to trade — that’s how they make money — but they want them to be successful, because that keeps the market functioning. [more…]

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