Day trader is the most common term that one gets to hear when it comes to stock trading and speculation. The day trader starts his day by assessing the stocks that he wants to pick and trade on that particular day. His decision making capabilities play a very crucial role in determining if the trading day is going to be profitable or not. A decision as to when to enter, when to be patient and hold on to the stock and also the right time to book a profit and exit from the stock market are all traits of a the day trader.

The day trader would usually look for stock options that are liquid stocks, which mean that these stocks are easy to buy and sell, also helping to ensure that the loss is minimized. Going back to 10 - 15 years, the day trader had to access the stock options he had and rely on the stock broker to either buy or sell any stock options that he might choose to trade.

However, the advent of new technology has only added to the ease of the trader, he is now in a position to view the real time movement of the stock prices, analyze real time technical data and make decisions. Technology seems to also have understood that the day trader might not be available always to make decisions which help him or her to make money.

This is the reason that many stock brokering websites allow the trader to set a price level up to which he can hold stock, if the price starts to fall below that price then the system automatically sells the stock off to minimize loss. At the same time the system also provides an option for the trader to assign a high level price as to where he or she would like the stock to be sold and exit from it by booking a profit. What else could be a true testimony to what is known as technology at your doorstep?

They are a number of techniques that the trader might implement. Two amongst the very frequently followed practices are Trend Following and Contrarian Investing. The names of the techniques themselves explain a lot. In Trend Following the trader invests money in buying stocks that are following the existing trend. The trend could be the stock that is rising on a constant basis.

Quite opposite to that is the trading practice of Contrarian Investing wherein the day trader waits for shares to fall so as to get a cheap bargain and sell them off at a higher price. Another very popular approach of stock trading that has become popular is that of range trading. In range trading the day trader analyzes stocks that have risen to a high and have fallen down to a low as well. Stocks that are trading in this range are called range trading stocks. The day trader buys stocks when they fall with the hope of selling them when the prices rise.

For the day trader, the stock market is a playground, where only the smartest and the quickest can survive.

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