Prediction

Why Day Trading Can Be Right For You

Day trading is the action of buying and selling securities, usually volatile stocks or options, typically within a day to try to beat the market benchmark and compound it over time.

It has been getting lots of attention during this pandemic because many young folks are stuck at home and looking for something thrilling to do. It has become “sexy” gambling. The adrenaline it produces must be exciting but it surely is not for everyone. It is very difficult to consistently make a profit. But it is achievable for those individuals that are made for it. So let’s see if you are one!

You do not have a day-time job and you intend to make a living from independent day trading. Day trading is not about placing a couple of trades during the lunchtime break, it is about getting into the market at the right time and exit within the day to capitalize on the market or stock swing. To do that you have to constantly track potential market tips and sentiments to make appropriate bets. Thus, it is not something that you can afford to do if you have full-time corporate employment.

You are the focused kind of person. You do not lose track and can efficiently multitask. These are important traits because day traders find themselves sitting for hours daily in front of multiple screens following intra-day orders and not to even mention the many tips they would be getting from multiple subscriptions. There are also some technicals involved in day trading. For example, traders buying on margins need to stay alert making sure that they are not falling below the required equity threshold. Traders also have to consider brokerage commission, taxes, interests, and other fees when they are making bets. These additional costs make some bets not worth it at all. It may sound like it gets quite mathy but maths is not impossible to learn. 

You enjoy setting yourself a goal and working toward it. This is about setting disciplines for yourself. You surely do not want to lose track of your performance. You will have to regularly check in to evaluate your performance, strategies, and goals. Aspired day-traders should seriously consider opening a virtual investment account that is often offered for free by brokerage firms so you can practice your strategies. It hurts and costs less losing fake money. 

Lastly, you have the capitals to spare. Understanding that day-trading not only can amplify gains but also exaggerate losses. It is not recommended you day-trade with your retirement or emergency fund. The risk level is just too great for this to justify. You should also be aware that there are institutional investors like hedge funds and banks who also day-trade. They hire professional day-traders and their offices are equipped with state-of-the-art technology and technical analysis. You bet they are trying to capitalize on your moves too. 

Overall, day-trading can be a career for someone who truly enjoys being in front of multiple screens and staying focused all day long. It is a career you might consider if you understand the trade really well and have spare capitals to risk. It is rewarding when you make it but if you miss it, don’t cry.


OctaFX logo

Where Your Best Forex Experience Begins

100% stocks, 0% commission

Your capital is at risk. Other fees may apply.

Join Tradeback Telegram Channel for Signals, Tips and Offers
Join Channel

News By Categories

Forex

Brexit Implications on the Value of the British Pound in a Post-COVID-19 World

Over the last four and a half years, Brexit has been one of the most high-profile political issues covered by the mainstream media.

Learn More
Commodities

About Us

Founded in 2020, Tradeback is a team of professionals dedicated to finding the best trading and investment deals for you

Learn More

Most Read Today

Join Tradeback Telegram Channel for Signals, Tips and Offers
Join Channel