David John MarottaDavid John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
Host: What is Day trading?
David Marotta: Day trading is the process of trying to buy and sell stocks over just a period of one trading day. So, from 9:30 in the morning to 4:00 p.
m. in the afternoon you are trying to make money and at the end of each day, day traders are generally completely out of the markets. So, they are trying to figure out in the morning what is going to go up that day. Buy it in the morning and then decide, has it gone up enough? Maybe they sell it at noon and they buy something else and then at 4:00 p.
m. they sell that something else. They are trying to make money simply by the short term trades.