Introduction to Day Trading
If you are thinking about the possibility of trying day trading for a living, then you’d better fasten your seatbelt for one hell of ride.
Once you enter the world of day trading, you will soon see just how enjoyable, exciting and profitable it all can be.
On the flip side, there are also the losses and frustrations that come on a regular basis. These highs and lows are not for everybody, but if you are truly in it for the long term, then it can be the most rewarding business on the planet.
One of the main benefits of being a day trader in modern times is that there are very little requirements to get up and running. If you have a fairly decent computer in your house, that comes with fast internet access, and you have somewhere to actually trade…then you you are in business!
Don’t be fooled into thinking day trading is easy though. At the very core day trading is certainly a simple game, but it is far from easy.
In fact, of all the thousands of people who try their hand at day trading every year, only a small percentage really make it. The vast majority of people struggle to make any significant long term profits at all, and many bankrupt their day trading accounts.
So what is the key ingredient that separates the winners from the losers?
The main answer to that question is knowledge.
You see, the more that you know about day trading, the more likely you are to be successful at it.
Once you really start to understand how to correctly read the markets and quickly identify trends that can make you money, then you are well on your way to being in control of your financial destiny by being an elite day trader.
Sure, there are other important factors involved in day trading as well, but superior knowledge comes out on top every single time.
What is Day Trading?
If you are still unsure of what day trading actually is, then allow us to clarify that for you.
Basically, day trading is the act of buying and selling things such as stocks, currencies and futures. The main goal of every trade that you get involved in is of course to make a profit, and this can be achieved for example, by selling a stock a higher price than which you bought it.
The main difference between day trading and other forms of trading and investing, is that in the world of day trading the vast majority of trades are completed within the course of a single day.
Sometimes, traders buy and sell within a matter of minutes, and things can definitely get crazy as people look to quickly make a profit.
Many years ago, the traders involved in day trading were mainly people that worked for banks. This however has changed drastically in recent years, as everybody now has access to market data, and trades can be made at a low cost.