To Day Trade or Not To Day Trade

day-tradingA number of people speculate on the market on a daily basis. These traders are referred to as day traders; hence the term “Day-Trading.” Popular instruments of day trading are forex, cfd’s (contracts for difference) and binary options.

There are a few advantages of day trading. The obvious two are being your own boss and being able to make profits on a daily basis. Very little start up capital is needed. All you need to day trade is a computer and an internet connection. There is nobody to give you orders and you do not collect a monthly pay-check. Rather, you make money on a daily basis.

However, caution needs to be exercised. A number of systems and scammers promise thousands of dollars in a day. Work out your own system. As time goes by and you become more familiar with the market you will be able to work things out. It is true what they say; there is no substitute for experience. Different indicators are used by different people. Some focus on momentum shift while others look at technical data.

To answer the question above, one can say that day trading is not for everyone. It depends on all sorts of factors such as risk aversion. Day trading is a personalised decision.