How do people get thousands of dollars in a day? Is there actually a skill involved or is it just gambling?
In: Economics
Today stock xyz opened at $10.33 and closed at $10.35.
During the day it reached a high of $10.42 and a low of $10.28.
Your day trader, through skill and analysis and luck, was able to purchase shares at $10.30 and sell them at $10.39, netting him a $0.09 profit, or about 0.009 percent, 9/10ths of one percent.
If they had $100 to invest, they would have made $0.90. If they had a million dollars to invest, they would have made $9,000.
Now imagine they bought and sold during a 10 minute period. They repeated the same thing multiple times each day.
Note that sometimes they lose money also.
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