Day trading can be profitable but it requires that you are able to devote a lot of time to your chosen profession. It is very hard, not to say impossible to be a successful part time day trader. You need to be able to follow the market as is develops to be able to spot opportunities and trade on them.
A day trader usually sells a financial instrument the same day as he or she bought it. Many times they will close their positions within minutes of opening them. They do this to be able to profit from the daily volatility of different stocks. Day traders will some times keep positions open over night but this is an exception not the rule.
Day traders can trade on a large number of different markets. The most common market to day trade on is the stock market and the FOREX market. Other people prefer to day trade commodities.
Day traders often specialize to trade only with a low number of financial instruments such as a low number of stock or one single currency pair.
Can you make money day trading?
Yes. You can make money day trading. To do so requires skill and discipline. Almost anyone can become a successful trader if they are willing to do the work. It is not an easy way to earn easy money.
There is no limit to how much money you can make day trading. There are many traders that make more than 6 figures a year.
For every success story there are a number of failed traders that weren’t able to become successful.
Do you recommend day trading?
The answer to this question will largely depend on how and what you want to day trade. Day trading can be a good option if you got a well developed trading plan. If you got a poor plan or no plan then it can be a very bad idea. An idea that will lose a lot money.
I can therefore nor recommend nor not recommend day trading. It all depends on your exact plan.
My advice is that you research the topic well by visiting websites such as daytrading.com. Once you have researched the topic you can make an informed decision of whether you want to day trade or not. If you decide that you want to day trade than you need to make sure to develop a trading plan before you start trading. It is important that you stick to this plan once you start investing.
Day trading stock
The stock market is one of the best places to day trade. It has limited volatility and you can focus on one or a low number of different stocks. This makes it a lot easier to know everything about the instruments you trade with. This in turns makes it a lot easier to predict future market movements. And thus a lot easier to make money.
You can use CFD certificates to be able to make leveraged trades on the stock market. CFD:s allows you to make a large profit from small market movements. You can read more about CFD:s here.
Day trading currencies
The FOREX market is very big and there is a lot money to be made on this market. The market can however be very hard to predict and a lot of traders lose money trading on the FOREX market. The most common reason for this is that they expect it to be easier than it actually is to make money on the FOREX market and because of the fact that they use too large leverage.
You should always use a demo account for a long time before you start trading for real money on the forex market. You need to know how to make money before you start trading for real money. If you do not then it is likely that you will go broke before you learn how to trade successfully.