Neglog - Virtual Day Trading

Jan. 28, 2008 - PRLog -- Literally, day trading means trading of financial instruments only during the day. This is the practice of avoiding further gaps of stock prices after the end of the day’s trading.  Trade transactions are taking place several times in a day composing of short term transactions with higher volumes enabling brokers to receive profits. That is why some moneymakers call day traders as "Gamblers" or "Bandits".  They may lose a large of money in a particular day, or win millions in some good days.

Trading in stock market is not that easy.  Not just everyone is allowed to trade in the stock market. Take for example in the New York Stock Exchange, one has to hire a stock broker and an analyst to do the trading in the floor of the Wall Street. A license broker must be tapped to do the negotiation inside the stock market.  Other than that, investors must acquire a  "seat" to directly trade inside. A seat is usually priced between US$ 3.5 million. Considering the cost of hiring a professional license broker and the price of the "seat", an investor would normally cost millions just to trade and get directly fresh shares for sale by companies.

When the NASDAQ was introduced, it gave a new face to day trading. What was once a manual trading in the floor has become a virtual stock market.  It was heralded as the new stock market a century from now.  NASDAQ, which stands for National Association of Securities Dealers Automated Quotations, was originally built to be a computer bulletin board system.  But taking consideration of trading at ease, it has incorporated in its system the Electronic Communication Networks. Investors would not shell anymore an extra cost of getting the "seat". While trading through phone is most common in all stock market, phone calls are usually not answered by market makers during some stock market crashes.  This is where Small Order Execution System takes its role as a substitute.  This system reports developments in the NASDAQ closing any gaps of information on what is happening. The NASDAQ has been giving surprises in day trading as it opens more investors to the market.

When the dotcom fever outbreaks in the late 1990's, NASDAQ has found 5000 active traders on it.  The speculative nature of this phenomenon wherein dotcom companies can established a worldwide consciousness of brand prompted the rise of stock prices in major internet website companies. However, the good days of dotcom business went into decline by 2000.  Overvalued stock prices plummeted resulting to the lost of many business. It was a big lost to the virtually-operated business .  By that time, NASDAQ has lost its more than 3,500 traders.  

Day trading, whether done virtually or in the tradition stock market floors, might promise a greater money at the end of the day.  But not all days are good in trading. Several instances have made the markets crashed.  Just like a roller coaster, it is a combination of its peak and its plummet.

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