Day trading is a waste of your time. Day traders are people who buy and sell stocks in the same day to make money. The people who make money doing that are usually employed by financial institutions and hedge funds. In fact, day trading is increasingly something that is done by machines, through what we call high frequency trading. Unlike humans, these super fast computers have no emotions, never get tired, and can send thousands of orders per second. It depends on wicked fast technology though – and without it, the average retail investor (normal people like us) simply cannot win. It’s the best way to lose money.
Related Terms
If a company was an apple pie, a stock would be a slice of the pie. In short, a stock is a slice of a company. Everyone who owns a piece of a company has the right to share a portion of the profits of the company. Read more
The stock market encompasses all the people, companies and institutions buying and selling slices of publicly-owned companies and other securities. Read more
Discount brokers are the intermediaries through whom you can buy and sell stocks, bonds, options, parts of mutual funds or other securities (and basically anything else that is traded on the stock market and/or has to do with investing). Read more
About The Author: Edouard
Edouard is a financial analyst at Hardbacon. He is responsible for compiling lists of securities that our users can find in the "Explore" section of the application.
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