Trading Basics
Day Trading
A day trader attempts to make a profit by making short, sharp transactions on a day-to-day basis, rather than letting their investments mature. A day trader will try to avoid keeping any positions open overnight to avoid charges that may cut into their profits.
Other Trading Basics
Averaging Down
Once an initial long trade is place this is the practice of opening additional positions at a lower price with the view of bringing the average opening price of the position down.
Bulls
Bulls are market participants and commentators that believe the price of a security will rise.
Book Value
A valuation of something using its net assets on the balance sheet.
A very rough way of valuing an asset because it ignores the intangibles.
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Learn the skills needed to trade the markets on our Trading for Beginners course.
