03-08-2018, 07:15 AM
Day trading is making short-term trades, lasting less than one day, in an attempt to extract a profit from the financial markets. Some day traders are very active, making many trades each day, while other traders may only make one or two trades per day. The most common day trading markets are stocks, forex and futures. Day trading can be a part-time or full-time career, depending on the trader's style.
It can be lucrative for some, but the long-term success rate is low.
There is a lot of hype around day trading. Some websites promote it as a way to get rich quick (it isn't), and others say it is impossible (also not true). There are lots of day traders around the world who find success and make a living off the markets, so the truth lies somewhere in between those two extremes. If you've thought about day trading, it's worth your time to read through and understand the concepts discussed below, so you'll be better prepared for what to expect if you decide to proceed.
We will cover how long it takes to start earning an income, day trading styles, capital requirements, best day trading markets, profit expectations, software and hardware requirements, hurdles traders face, and finally how to become a better day trader.
Time Investment to Day Trade Successfully
Day trading isn't a get rich quick career, nor is it something that takes years to gain consistency at. Expect to spend six months to a year honing your skills and practicing a strategy before you become comfortable with it in all conditions.
The hard part is that a day trading strategy may work great this month, but next month it doesn't. Day traders need to constantly adjust, as no two day in the market are exactly alike.
The problem most new traders make is that they don't practice a strategy in a demo account, for several months or more, before risking real capital. Therefore, they have no idea how a strategy works, and how they need to adjust it when market conditions change. The demo accounts serves as a testing ground, where new traders can test out ideas, see what works and hone trading psychological skills (such as patience, discipline and focus).
It can be lucrative for some, but the long-term success rate is low.
There is a lot of hype around day trading. Some websites promote it as a way to get rich quick (it isn't), and others say it is impossible (also not true). There are lots of day traders around the world who find success and make a living off the markets, so the truth lies somewhere in between those two extremes. If you've thought about day trading, it's worth your time to read through and understand the concepts discussed below, so you'll be better prepared for what to expect if you decide to proceed.
We will cover how long it takes to start earning an income, day trading styles, capital requirements, best day trading markets, profit expectations, software and hardware requirements, hurdles traders face, and finally how to become a better day trader.
Time Investment to Day Trade Successfully
Day trading isn't a get rich quick career, nor is it something that takes years to gain consistency at. Expect to spend six months to a year honing your skills and practicing a strategy before you become comfortable with it in all conditions.
The hard part is that a day trading strategy may work great this month, but next month it doesn't. Day traders need to constantly adjust, as no two day in the market are exactly alike.
The problem most new traders make is that they don't practice a strategy in a demo account, for several months or more, before risking real capital. Therefore, they have no idea how a strategy works, and how they need to adjust it when market conditions change. The demo accounts serves as a testing ground, where new traders can test out ideas, see what works and hone trading psychological skills (such as patience, discipline and focus).