Day Trading: Passive or Full-time Income
If you are looking for a way to make money, you may be intrigued by the concept of day trading. Day trading involves buying and sell commodities within the same day. For instance, you may buy 100 shares of Apple stock at 10 a.m. and sell them all five minutes or five hours later. Is this a viable way to make money?
You Have to Know What You Are Doing Day trading is an easy way to lose money if you don’t know what you are doing. If you buy and sell stocks without a strategy or a goal in mind, you will lose thousands before you have time to eat breakfast. However, if you understand the market, it could be a great way to earn a full-time living that can support yourself and your family.
Create Your Strategy and Execute It With a Computer The worst thing that you can do is to fail to execute your strategy because your emotions take over. What you should do is determine what price you want to buy a commodity at, what price you want to sell at and then let a computer make those trades for you. This ensures that your strategy will play out and you can determine after the fact whether it was effective or not.
How Much Can You Lose? The question that you have to ask yourself is how much you can afford to lose. This is because you will have days when you lose some or all of your money. Losses are expected because the market behaves irrationally most of the time. Even with the best information, you can still be wrong about your current positions.
Yes, It Is Possible to Make Money From Day Trading Although investors should day trade carefully and with eyes wide open, it can be an effective way to make money. With the right strategy, you can make hundreds or even thousands of dollars in just a single hour or a single trade. While it can be a full-time job, newer investors should not quit their day job until they have a good idea of what it takes to make money consistently.
Day trading is an investment strategy that comes with risk and reward. Therefore, make sure that you do your research, partner with a reputable broker and know which securities you feel most comfortable trading before you jump in with real money.
This post was repurposed for distribution. To read more articles just like this from Jonah Engler, visit his main website at JonahEngler.com.