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In the late 1990’s numerous day trading firms sprouted around the country and there was a great deal of discussion about the practice of day trading. There were a number of studies (see below) of day traders at specific firms that attempted to answer the question of whether day traders make money. However, for several reasons, there was no definitive answer to the question. An initial problem was defining the term “day trader” and determining exactly how many day traders there were and still are. Additionally most day traders do not publicly disclose their results. But we can piece together the various sources of information and come to some general conclusions. make money from home
Day traders were described in the preliminary prospectus for All-Tech (filed in 1998) as those who engage in the buying and selling of securities many times during the course of a day based on short-term price volatility. Day traders may be active multiple asset classes, for instance many focus on forex trading, or commodities, but the term day trading is typically associated with trading in stocks. They typically close out open positions by the end of trading day in order to manage risk when the markets are closed. Positions are sometimes closed within minutes of the initial purchase or sale. Some estimates of the number of dedicated “day traders” (that operate at day trading firms) were in the 5,000 range. Others estimated that there may have been another 250,000 people that use some kind of software or dedicated systems to trade full time from home. These people should be differentiated from people that have online accounts and that might occasionally place one or more day trades. make money from home