Open accounts with a reliable broker is a great way to increase your savings. In addition, clients must realize that some brokers refuse certain operations and practices so make sure to choose one that is flexible. Everything needs to be inspected carefully before opening an account, and it is worthwhile to open two securities accounts with two different brokers depending on your strategies.
Consider all options
Becoming day trader is a decision to carefully consider. It can impact both a person’s savings and their family. The stock market surge during 2000, and more recently the market recovery after the e-crash, pushed thousands of employees to leave their jobs and embark on the world of the stock market trading. These new investors called “Day Traders” play on price changes per minute and take advantage of small spreads to garner their capital gains.
What is day trading?
The practice of day trading is to buy and sell financial products (stocks, options, warrants, futures, etc.) so that, at the end of the day, the balance of its operations is zero and the portfolio is filled with dollar signs. Passing many orders to buy and sell during the same trading session, these new investors, have fueled the market in numerous ways.
In the United States, day traders are part of the “Electronic Traders Association”. The members of this association account for 15% of the Nasdaq’s daily volumes. Investors are keen on growing the US market, mainly because it offers high volatility compared to other markets and allows them to take bigger profits faster and in a more restricted space.
To encourage customers to increase their trading volume, US brokers have even invented a new type of brokerage that is the hourly rate. This new type of brokerage allows customers of different brokers to pass an unlimited number of orders in one hour. This type of package is dangerous for customers because they embark on a race to pursue capital gains.
Reaping capital gains should be priority number one; investors should never lose money because they hired day traders that are not knowledgeable. Visit the Better Business Bureau’s page for Rockwell Trading to learn more.