Consider Transaction Costs before Executing a Day Trade
Day trading costs money. Consider all the costs of getting started: buying equipment, paying for Internet access, learning how to trade. Add to those costs the costs of doing business that vary with each [more…]
Risk Arbitrage Tools for Day Traders
Because so few opportunities for true arbitrage exist, most day traders looking at arbitrage strategies actually practice risk arbitrage. Like true arbitrage, risk arbitrage attempts to generate profits [more…]
Convertible Arbitrage as a Strategy for Day Trading
Day Traders use arbitrage tools — derivatives, leverage, short selling, synthetic securities — in many ways to generate profitable trades of stock and other securities. If you decide to do arbitrage, there [more…]
Fixed Income Arbitrage as a Day Trading Strategy
Lots of day traders use arbitrage as one of their strategies for profiting from the stock and securities markets. There are a number of ways to approach arbitrage, including arbitrage in the fixed income [more…]
Index Arbitrage as a Day Trading Strategy
If you have decided to add arbitrage to your bag of day trading strategies, consider index arbitrage. Arbitrageurs love an asset — like an index — that has lots of different securities based on its value [more…]
How Company Mergers Create Arbitrage Opportunities for Day Traders
Every day, companies get bought and sold, and that creates arbitrage opportunities for the day trader in the stock market. In fact, one of the better-known arbitrage strategies out there is [more…]
Arbitrage Opportunities for Day Traders in the Options Market
Options form the basis of many arbitrage strategies, especially for those day traders who work the stock market. First, many different types of options are available, even on the same security. The two [more…]
Good Day Traders Are Disciplined
Successful day traders have an innate sense of discipline. They know when to commit more money to a trade and when to cut their losses and close shop for the day. [more…]
Good Day Traders React to Breaking News
One reason that the stock and securities markets are so volatile is that they respond to news events. Prices reflect information, changing when any little bit of information comes into the market — even [more…]
Successful Day Traders Set Targets and Limits
Good day traders set limits. They often place stop and limit orders to automatically close out their market positions when they reach a certain price level. They have profit targets in mind and know how [more…]
Rules to Follow If You Day-Trade ETFs
The best investing strategy is to buy and hold a well-balanced portfolio (including ETFs) and rebalance it once a year. But if you insist on day trading ETFs , just play by a few rules. [more…]










