Make Money In Stocks – How the Day Traders Do

Make Money In Stocks – How the Day Traders Do It

No doubt you’ve heard of ‘day traders’ and how they sit at home making big money without having any boss or customers or have any need to interact with anybody. So how do they do it? Well they use a number of techniques but in this article we’re going to explore one (and probably the most used), ‘Technical Analysis’.

Before we start clarification must be made that the author is not a financial consultant and this article is not intended to direct or advise you in your investment strategies. This article is merely to describe some of the author’s observations whether real or imagined.

People, especially concerning publicly available information, tend to respond at least to some degree as they percieve others to respond. For example: if people continue to buy stock until it reaches a certain price and then stop (for whatever reason) once, when the stock turns around (after the dive) and goes back up, people will be more wary of keeping the stock after it goes over that price again. This is known as a ‘resistance’ line. Of course resistance lines are...