What novices should know about day trading

Why do people get involved in day trading?

Though it’s best to avoid making assumptions about why day trading appeals to so many people, the chance to make a substantial amount of money in such a short period of time undoubtedly contributes to its appeal. However, the SEC notes that the risks associated with day trading are substantially higher than long-term investment strategies. Much can happen over the course of a single market day, and that can leave day traders exposed to heavy losses.

Is day trading for novices?

The thrilling nature of day trading makes it appealing to investors at all levels of investing, whether it’s novices or seasoned investment professionals. However, the SEC notes that professional day traders typically are highly experienced individuals with extensive knowledge of markets, products and strategies. Such individuals are also well-versed in risk.