Day trading refers to the buying and selling of stocks, or trading, multiple times in one day.  This type of trading is based on price imperfections due to peculiarities in the market, such as over reaction to industry news or market swooning.  Day traders look for price imperfections in individual stocks or market fluctuations that allow for a fraction of a point to several points of profit to be made quickly.  Day traders rarely hold any stock at the close of a day. 

To begin day trading, you generally need to have enough money or capital to by enough shares of stock suitable for day trading.  $20,000 of risk capital is generally a good figure to begin with.  It is essential that the day trader not have to worry about losing this entire amount of capital very quickly.  Not every stock is good for day trading.  High volume, well-recognized stocks are best suited for day trading.

 Some general rules of day trading are:

1.  Always have a trading plan,

2.  Control your emotions at all costs,

3.  Always accept and limit your losses,

4.  Make a serious commitment of time and effort,

5.  Don’t over-trade.