Saturday, September 22, 2018
Articles

Is Day Trading For You?

Day trading is a tough discipline that involves making multiple trades in a single day. You’ll need to develop an understanding of technical analysis and sophisticated charting systems, but the rewards for doing so are highly encouraging. It helps if you understand the RSI trading Strategy, a popular indicator which represents how well a stock is performing against itself. This compares the strength of the up days versus the down days, computing numbers which range from 0 to 100. Seventy is considered bullish, whereas anything below 30 is an indication of bearishness.

As a day trader, your objective is to make a living from trading stocks, commodities, or currencies, focusing on making small profits while capping losses. Day traders are renowned for not keeping securities overnight, and to be successful they need a unique skill set that’s difficult to master. People are slowly gravitating to day trading due to the benefits involved. If you’re seeking inspiration for why day trading is for you, here are some top advantages to consider:

Eliminates Overnight Risk
The market is known to fluctuate overnight, and when a stock closes at a new high, it can open the next day significantly lower. This can wipe out around ten days’ profit, but with day trading you’ve not vulnerable to this occurrence. You can rest assured your portfolio isn’t influenced by political developments or disasters that cause price fluctuations.

Leverage Capital Investment

Brokers usually offer their clients up to twenty times more than their capital margin, allowing day traders to control more investment than is available. This allows prudent traders to multiply their profit many times over, meaning you can make more money with a small investment. The sums attainable are considerably more than you can earn in other businesses investing the same. This leveraging is a highly attractive aspect of day trading.

Opportunity to Learn

You can learn and test different trading patterns and techniques at your own leisure in a relatively short time span. Time is a valuable resource, and if you can fast track learning with ample opportunity, you’re one step closer to success. Day trading gives you the chance to trial and error different trading methods and quickly learn which works best for you, which can generate lucrative earnings.

Flexibility

Day trading doesn’t require as much infrastructure, and you can work independently from the comfort of your own home. This is a huge advantage, because you’re not answerable to anyone except yourself, and you don’t need access to more than a high-speed computer. Enjoy the luxury of waking up and working at your own pace in an environment that suits your individual preferences.

Never a Dull Moment
Day traders thrive off of the thrill of pitting their wits against the market, in a competitive bullfight with other professionals. There is an adrenaline factor with rapid-fire trading, which leaves day traders adamant they’ll never return to a mundane office job.

Bob Buskirk
the authorBob Buskirk
About 10 years of computer experience. Been messing around with electronics since I was 5, got into computers when I was in highschool, been modding them ever since then. Very interested in how things work and their design.
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