Many people are against short-term trading, let alone day trading. However, with the proper homework and funds, day trading can be very lucrative. All stocks fluctuate in price throughout the day. Day traders should target stocks that are less than $10 and are stable big companies. If that company is a good long-term play as well, then hallelujah! In case you buy at the stock's high point during the day, you wouldn't mind holding on for a longer period of time.
The trick to day trading is to invest in high volume and buy and sell at the low and high respectively. Now that's obviously much easier said than done. But I believe that with the proper research, lucrative day trading can be accomplished. For instance, take Citigroup Inc. (NYSE:C). This stock has about an 8-10 cent range on average. Within this range, if you were to invest with, say $25,000 (I did say BIG funds!), and the stock goes up even just 3 cents a share, you just made over $150. The stock can fluctuate much more than that even within an hour, the trick is buying at the correct low price. I understand the opposite of this can happen as well, but hopefully with the right homework and luck, your profitable days will outweigh those days in which you lose. Even if they don't, Citigroup is a great long-term play as well.
Because you are risking a lot of money in acting upon this strategy, I would think that, at least at first, it would make sense to put very strict limit orders - always try to buy at the lowest price possible. Worst comes to worst, your order doesn't go through. If this method does pan out for you, you can make hundreds of extra dollars a day.
Happy Holidays, I hope you can Hit that Bull's Eye!
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