Archive for June, 2010

Day Trading Explained: Common Misconceptions and its Definition

Saturday, June 12th, 2010

You might have heard the term “Day Trading” but does not understand the meaning. Or maybe a profession called as “Day Trader” such as job of Micah in the movie “Paranormal Activity”. These jobs are not very common and is sometimes confused with the following terms:

a.) Stock trader
b.) Investor
c.) Entrepreneur
d.) Businessman

As a definition, a day trader is someone who:

1.) Trade either stocks or futures in a daily basis.
2.) Mostly work at home or maybe hired to do the job.
3.) Make a living out of trading profits.

So lets back with the common misconceptions:

1.) Does a day trader a stock trader? The answer is yes, (more…)

Stocks and Interest rates

Sunday, June 6th, 2010

If you are a stock trader or an investor, you should be paying attention to government central bank interest rates. In US, this is called US Federal Reserve federal funds rate.

What so called interest rates can actually influence the trend of the stock market.

banks increases interest rate

Let’s illustrate the process flow of what will happen if news came out that the Federal Reserves bank or any government central bank increases their interest rate:

Step 1: Fed increases interest rate. (more…)