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Online Trading on a daily basis
Day trading is the buying and
selling of a stock or stocks within the same day. Day trading is
extremely risky and may be considered as risky as gambling.
Substantial financial losses (or occasionally gains) can occur
in a very short period of time.
A profit or loss is made on the difference
between the purchase and sale price (day traders generally have
no interest whatsoever in dividends). Day trading on currency
markets is also common.
Day trading is not in itself essentially any
more risky than any other trading activity but the ability to
gear up on
margin (i.e. using borrowed funds) can make it so:
Substantial losses or gains can occur in a very short period of
time (however, day traders typically do not keep a position open
long enough to suffer badly from interest costs associated with
margin).
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