There are some traders who rely on "futures". This occurs mainly in the commodity markets, where millions can be made or lost depending on the price, a year or more hence, of winter wheat, soybeans, corn, pork bellies, etc. Day traders, as the name implies, are not willing to wait. They want immediate results. They may invest in the morning, sell by noon, and repeat the procedure over again in the afternoon. It is a matter of timing, and making the right decisions about the current movement of a stock or stocks.
"The decision maker will make decisions consistent with his values, which are those things that are important to him, especially those that are relevant to this decision. A common value is economic, according to which the decision maker will attempt to increase his wealth" (Spradlin 1).
In keeping with economic decisions, one should look to picking stocks that will increase in value. No one buys stocks or bonds merely for altruistic reasons. Most professionals consider that a company's value is what might make its stock attractive. "The idea of value investing and looking for a bargain is one of the oldest ways to pick stocksaThe concept is similar to shopping. You usually look for the product that is reasonably priced without sacrificing quality" (Smatz.com 1). In other words, a "value company" is one that is relatively cheap, compared to its earnings and book value. If there is volatility in the particular stock, and if the day trader believes the volatility is quickly moving upward, he buys. However, so-called value stocks don't always do what the day trader expects. Perhaps one of the reasons so many investors lost heavily on e-commerce and dot.com stocks in recent months is that, while the stocks were originally priced very low and rose tremendously, there were no earnings. One of the most popular stocks, which had a tremendous downturn, is Amazon.com. While some investors felt the future of the compa...