Day trading: how to lose money without even trying
Hello Tech Rookies! Let’s talk about why day trading is a very bad idea.
If you’re not the type of person who can handle day-trading, then I’ll do my duty and keep your hands off. It takes more than just an appetite for risks; it takes strong nerves too! The best traders in this business are always on their toes because anything could happen at any time – even when things seem calm as nightfall (which is probably what most people would prefer). Day trading is a popular strategy for investors who want to take advantage of small price movements. However, it’s important not to spend all your time doing this and neglect other parts in order to build up an investment account that will last longer than you’ll be able to work with one specific company or fund exclusively!
Day trading is a lot more than meets the eye. You might think that people on floors are always in high-intensity arguments, but they’re not – at least when you get down to basics of what’s happening right now with your broker and their orders for stocks or forex markets…which brings me nicely onto my next point:
It doesn’t take much intelligence (or finance knowledge) either! So why don’t we talk about how this works? When someone wants something sold (like an asset), all bets can go out from under them because there’ll be no one left who wins. This reminds me of Why most small businesses fail.
You are most likley going to lose day trading
“The success rate for day traders is estimated to be around only 10%, so … 90% are losing money.”
From personal experience, you are most likely going to lose. But If you’re sure day trading is for you, practice with a paper “sim” account. The point is that you must refine your tactics for getting into and out of positions. Isn’t that the kind of counsel you’d give a gambler? That’s correct. Most traders establish and stick to a fairly disciplined trading technique, and they know when to close out a position. You can trade a single stock or a portfolio of equities. Do this for approximately a month and keep track of how much you make and lose each day.
The life of a day trader is not for the faint-hearted. They are up at 6 am trying to trade before anyone else and then stay in contact with their clients through chat rooms, email, or phone calls all throughout the following trading session until it ends around 4 pm EST when they get 2 hours sleep while monitoring stocks 24/7 waiting patiently by your computer screen just in case you need anything! It’s intense but if this sounds like something that would suit your personality go ahead because there really isn’t any other job like ours where one can make lots of money whilst being his own boss.
Long term investing is better than Day Trading
The market has always gone higher over time, the stock market is usually a good choice for long-term gain. But, not all stocks are made alike, with some being more growth-oriented and others being more defensive.
I recommend investing in index funds that provide exposure to a broad market, such as the S&P 500, to help diversify as much as possible. Index funds are also a low-cost choice for fee-sensitive investors, which is critical because long-term investors don’t want to be suffocated by costs.
As I pointed out that investing in equities markets necessitates the ability to resist short-term volatility, as well as the ability to avoid reacting to transitory shocks. These two books below were great reads and helped me a lot understand the market. For more in-depth information about investing check Investors Business Daily.
Also, check out Webull and get 3 free stocks after it’s funded. Pretty decent brokerage for Tech Rookies.
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Disclaimer: This article is for information purposes and should not be considered professional investment advice. It contains some forward-looking statements that should not be taken as indicators of future performance. Every investor has a different risk profile and goals. All investments have risks. Always do your own research or hire an expert before investing and trading in the stock market.
