Getting in and getting out as fast as you can without making a loss is what day trading is all about. You only have from the start of the bell toll to the end of the trading day to make your buy and sell of a stock. Mostly, people will lose money trying to make a quick buck because they don’t do their research and think that betting on small movements in the market is like gambling. However, this is why it is seen as a ‘get rich quick’ scheme by some financial commentators. When you try to play a system based on chance, then you will no doubt make some losses. However, just because you are a day trader doesn’t mean your actions are not unlike any other stock trader. You must do your research on what is going out the window and what is starting to pick up steam. Stocks go up and down all the time, but they do so for a reason or multiple reasons. As long as you understand the reasons, you’re not gambling, you’re making smart calculated moves within a small window time frame.
Chosen days and market psychology
Day trading is not easy. Anyone who believes it is and thinks they can play the system is only playing themselves. Take your time and learn what makes markets shift normally such as different economies competing against each other, and when the market moves abnormally. Abnormal is when a government is making a sudden shift in policy. This will no doubt spook the stock market to some degree. This is where market psychology comes into play. A smart day trader will pick a stock that has been riding high right up until the last few minutes of the previous trading day. They will keep up with the news that is relevant to that stock, such as the company that sells that stock publishing financial quarter performance. Based off of this kind of information and knowing that on a chosen day something abnormal is set to occur, you can play the market psychology to your advantage and buy or sell a particular stock.
What do you need?
Do not fall for the ‘get rich quick’ kind of rhetoric you hear sometimes. Day trading is a serious art that takes a lot of mastering to be successful. Here is how to day trade for a living and what you will need to have a chance at succeeding. Capital is definitely high up on the list. Day trading stocks is all about minute percentages. In order to make high enough profit to pay commission fees and still walk away with a handsome wad of cash, you need a lot of capital invested in that small decrease or increase in stock percentages movements. The lack of consistency is the downfall of many day traders. You’re playing a game of hot and fast and you need to be on the ball at any moment. Despite your research and information, sometimes stocks act irregularly and you need to be mindful of when to get out and get back in again.
Can you make day trading your living? Absolutely, yes. But you need capital, enough to make sure those tiny percentage changes actually matter. Play the market psychology to your advantage and get involved early on chosen days of change.