Is Daytrading dangerous?

[makarand.mone]

Hi,

Do not wish to debate with the strategy provided on trading in only the shares which you have. Everyone has a point of view.

I believe any type of trading becomes profitable if done in a predetermined manner. Daytrading is nothing extraordinary if done with a plan.

The funda for day-trader should be

PLAN THE TRADE AND TRADE THE PLAN....

It's not simple but if the art of discipline can be mastered enough, day-trading would serve as a profitable profession.

All in all, my answer to the thread is... NO! DAYTRADING IS NOT DANGEROUS FOR THOSE WHO KNOW HOW TO DO IT


Regards

Max

 

[trader31339]

Hi,

I had recently taken sub brokership and can do day trading in clients account. Is there any method in day trading to earn brokerage with little profit?

ADAMKE ,

You are a subbroker ? happy to know this ,
give me your contact details we can have a business relationship

 

[soody]

BULLS & BEARS MAKE PROFIT SOMETIMES BUT BRAINS MAKE PROFIT ALWAYS
...This is possibly true in Derivatives trading !!!

 

[Ali_001]

hello freands,
My self mohammed ali from hyderabad. i am looking for a free software for paper day trading i want to practice little bit before entaring in real ring of traders any advice from senior members will be use full in this mattrer.

thanks a lot in advance for your help mohammed ali

 

[tulika]

hello freands,
My self mohammed ali from hyderabad. i am looking for a free software for paper day trading i want to practice little bit before entaring in real ring of traders any advice from senior members will be use full in this mattrer.

thanks a lot in advance for your help mohammed ali

you can try Moneybhai.com

 

[rajeshrdm]

Day-trading is fraught with risk, no doubt, but can't it serve as a tool for education in trading? The key is to trade in miniscule lots, review the results and iron out wrinkles in strategy and trading personality,,,,,,, .

Nice write up.Keep it up!
After day trading for around for three months and incurring losses and also hearing negative views about day trading from many,I felt day trading is nothing but day dreaming only.
However your article enlightened my spirit.

 

[biyasc]

Hi,

Do not wish to debate with the strategy provided on trading in only the shares which you have. Everyone has a point of view.

I believe any type of trading becomes profitable if done in a predetermined manner. Daytrading is nothing extraordinary if done with a plan.

The funda for day-trader should be

PLAN THE TRADE AND TRADE THE PLAN....

It's not simple but if the art of discipline can be mastered enough, day-trading would serve as a profitable profession.

All in all, my answer to the thread is... NO! DAYTRADING IS NOT DANGEROUS FOR THOSE WHO KNOW HOW TO DO IT


Regards

Max

i agree with you. if day trading is dagerous then all types of trading are dangerous. day trading is a low risk trading strategy than other types of trading. but one have to take care about his/her diciplines/trading rules.

 

[uasish]

Swing Trading suits me more ,Day trading comes 2nd,but in Day Trading (obviously on Margin) one has to be more alert ,vigil & nimble to switch ,with periodically booking of Profit / Loss more often ,apart from all the other skills.

 

[amritbanga]

dear kgsirasani,
thanks for such a good writeup. i am nnew to day trading and i don't know how to fellow which path. i hope after going throug your writeup i will try your way. kindly help me if i require further guindance
amritbanga

 

[sudhir gupta]

Day-trading is fraught with risk, no doubt, but can't it serve as a tool for education in trading? The key is to trade in miniscule lots, review the results and iron out wrinkles in strategy and trading personality..... but is damn difficult to follow. But with persistence, one can definitely learn to.

Please forgive me for barging in this thread. I have noticed that people shying or feeling ‘low’ in admitting themselves being speculators (aka daytraders) but rather proudly admit being investors. You can notice this attitude even on CNBC when people ask stock related question. Even Govt. taxes speculation at higher rates.

I, myself being a die hard day trader (speculator), will like you to read following passage from the book of Jesse Livermore. I have not cut and pasted the text but typed it myself from the book so that it registers more thoroughly on my brain :

Quote

"How often have you heard an investor say: “I don’t have to worry about fluctuations or margin calls. I never speculate. When I buy stock, I buy them for an investment, and if they go down, eventually they will come back.”

But unhappily for such investors many stocks bought at a time when they were deemed good investments have later met with drastically changed conditions. Hence such so-called “investment stocks” frequently become purely speculative. Some go out of existence altogether. The original “investment” evaporates into thin air along with the capital of the investor.

This occurrence is due to the failure to realize that so-called “investments” may be called upon in the future to face a new set of conditions which would jeopardize the earning capacity of the stock, originally bought for a permanent investment. Therefore, the investor must guard his capital account just as the successful speculator does in his speculative ventures.

If this were done, those who like to call themselves “investors” would not be forced to become unwilling speculators of the future-nor would trust fund accounts depreciate so much in their value.

Speculaltors in stock markets have lost money. But I believe it is a safe statement that the money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride. From my pointview, the investors are the big gamblers. They make a bet, stay with it, and if it goes wrong, they lose it all. The speculator might buy at the same time. But if he is an intelligent speculator, he will recognize-if he keeps records-the danger signal warning him all is not well. He will, act promptly, hold his losses to a minimum and await a more favorable opportunity to re-enter the market."

Unquote

I hope above will help in building self confidence in budding day-traders.

Happy Trading!