Nowadays, day trading has become very popular among the investors
. Day trading is a kind of trading which is done on day to day basis, thereby profit is also made on day to day basis. It is also a fact that many investors have earned millions of dollar from day trading. But day trading is a very risky kind of trading. But this risk can be kept away if you are a wise investor and have good knowledge of the stock market.
Day trading is not kind of easy work; day trading requires good deal of work in order to succeed in this business. A thorough research of the entire stock market as well as its reaction to different economic actions should be done. The day trading would give you good return if you trade in huge lots rather than small lots. If you want to do day trading, you should keep in your mind one thing that if you want to become successful and consistent profitable investor then you would have keep all things very simple rather than creating complexity. This is because if you think about different technical indicators then it will make you confused and you won't be able to take appropriate decision.
Talking about stock trading, in stock trading the investor picks stock at low price and keep it for long time so that when its price will increase to some fraction he may sell it and make profit from that. Stock trading is kind of less risky trading. In stock trading the time period plays an important role. Therefore, you must have good knowledge about the time frame of the different stocks in stock trading.
For stock trading you will require a trade account which can be opened with any stock broker company. The account in stock trading will be linked with your bank's account so that you may do the transaction directly from your bank account instead of taking worry about the payments. If you purchase some stocks in stock trading your balance will automatically get reduced and vice and versa.
As you may know that for any kind of business a minimum capital is required the same is applicable to the stock trading as well. Since, stock trading is a kind of risky business therefore; you should invest less at the beginning. Once you become expert in the stock trading then, you can transact in large in future.