This is a common question to those who have no idea what day trading is, or those who may have heard of the topic but have not actually tried it.
Experts and those who have actually benefited from this type of business are sure to answer in the affirmative, while those who have suffered losses are quick to say no.
So in order to arrive at a sensible answer, we need to understand how it works and how traders can profit from it.
This type of trading involves the typical buy and sell of stocks and other securities, with the distinguishing feature of having both transactions done in one trading day.
While this may seem simple for those who are also into investments and the stock market, you can't use mere judgment or discretion in your decisions.
That is why experts would advise would-be traders to learn the subject well before actually getting involved.
Before you start trading, you need to make an account with online trading companies.
Once you've made an account, you will then hire a broker to make the deals.
These brokers and trading companies charge commissions, slippage fees and other trading fees for transactions made.
These rates differ for each person and company, so you must choose those which do not charge very high amounts.
One common mistake by traders is to use all their money.
This should not be the case.
Use only disposable money.
Money for food, bills payments or tuition should never be used in trading.
Otherwise, it will put unwanted pressure on you not to lose it as you trade.
Once you've learned a system and decided to use it, the next step is to be consistent in your transactions.
To achieve consistency, make sure that the system is documented.
Once you've written it down, you will then measure its critical factors.
Look into the aspects which affect profitability.
Once you've identified these aspects, then you can make the necessary changes in your system.
Day trading can be profitable, if you know the business well.
People who have failed in this venture are often those who did not take time to learn the ropes.
For you to earn in day trading, the goal is to keep your losses and trading costs at a minimum.
With this simple principle in mind, you will then develop your own trading system, and do things according to it.
Experts and those who have actually benefited from this type of business are sure to answer in the affirmative, while those who have suffered losses are quick to say no.
So in order to arrive at a sensible answer, we need to understand how it works and how traders can profit from it.
This type of trading involves the typical buy and sell of stocks and other securities, with the distinguishing feature of having both transactions done in one trading day.
While this may seem simple for those who are also into investments and the stock market, you can't use mere judgment or discretion in your decisions.
That is why experts would advise would-be traders to learn the subject well before actually getting involved.
Before you start trading, you need to make an account with online trading companies.
Once you've made an account, you will then hire a broker to make the deals.
These brokers and trading companies charge commissions, slippage fees and other trading fees for transactions made.
These rates differ for each person and company, so you must choose those which do not charge very high amounts.
One common mistake by traders is to use all their money.
This should not be the case.
Use only disposable money.
Money for food, bills payments or tuition should never be used in trading.
Otherwise, it will put unwanted pressure on you not to lose it as you trade.
Once you've learned a system and decided to use it, the next step is to be consistent in your transactions.
To achieve consistency, make sure that the system is documented.
Once you've written it down, you will then measure its critical factors.
Look into the aspects which affect profitability.
Once you've identified these aspects, then you can make the necessary changes in your system.
Day trading can be profitable, if you know the business well.
People who have failed in this venture are often those who did not take time to learn the ropes.
For you to earn in day trading, the goal is to keep your losses and trading costs at a minimum.
With this simple principle in mind, you will then develop your own trading system, and do things according to it.
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