Virtual Day Trading

Released on: January 27, 2008, 2:29 am

Press Release Author: barbara camie

Industry: Financial

Press Release Summary: Profits and loses are done only in a day at stock market.
This is what they called as the "Day Trading".

Press Release Body: Literally, day trading means trading of financial instruments
only during the day. This is the practice of avoiding further gaps of stock prices
after the end of the day's trading. Trade transactions are taking place several
times in a day composing of short term transactions with higher volumes enabling
brokers to receive profits. That is why some moneymakers call day traders as
\"Gamblers\" or \"Bandits\". They may lose a large of money in a particular day, or win
millions in some good days.

Trading in stock market is not that easy. Not just everyone is allowed to trade in
the stock market. Take for example in the New York Stock Exchange, one has to hire a
stock broker and an analyst to do the trading in the floor of the Wall Street. A
license broker must be tapped to do the negotiation inside the stock market. Other
than that, investors must acquire a \"seat\" to directly trade inside. A seat is
usually priced between US$ 3.5 million. Considering the cost of hiring a
professional license broker and the price of the \"seat\", an investor would normally
cost millions just to trade and get directly fresh shares for sale by companies.

When the NASDAQ was introduced, it gave a new face to day trading. What was once a
manual trading in the floor has become a virtual stock market. It was heralded as
the new stock market a century from now. NASDAQ, which stands for National
Association of Securities Dealers Automated Quotations, was originally built to be a
computer bulletin board system. But taking consideration of trading at ease, it has
incorporated in its system the Electronic Communication Networks. Investors would
not shell anymore an extra cost of getting the \"seat\". While trading through phone
is most common in all stock market, phone calls are usually not answered by market
makers during some stock market crashes. This is where Small Order Execution System
takes its role as a substitute. This system reports developments in the NASDAQ
closing any gaps of information on what is happening. The NASDAQ has been giving
surprises in day trading as it opens more investors to the market.

When the dotcom fever outbreaks in the late 1990\'s, NASDAQ has found 5000 active
traders on it. The speculative nature of this phenomenon wherein dotcom companies
can established a worldwide consciousness of brand prompted the rise of stock prices
in major internet website companies. However, the good days of dotcom business went
into decline by 2000. Overvalued stock prices plummeted resulting to the lost of
many business. It was a big lost to the virtually-operated business . By that time,
NASDAQ has lost its more than 3,500 traders.

Day trading, whether done virtually or in the tradition stock market floors, might
promise a greater money at the end of the day. But not all days are good in
trading. Several instances have made the markets crashed. Just like a roller
coaster, it is a combination of its peak and its plummet.
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