Is Daytrading dangerous?
- Thread starter pksam
- Start date
Day trading is simple and effective. It is the traders who makes it complicate, when they have losing trade.
When they have:
First losing trade they become sad.
Second losing trade they become frustrated and lose patience.
Third losing trade they become nervous and enter a blind position.
Fourth losing trade they become totally lost.
But if you have be trading with effective stop-loss technique the loss would be minimal and u can recover it in the Fifth trade and move on.(Track your performance on Weekly or Monthly basis rather than trade to trade or daily basis)
Don't worry about the price it is moving now. Concentrate on chart(Buy at support and Sell at resistance) and news(to guess the momentum of the market)
When market opens give some time to settle and enter position along with chart movement.
While entering position be patient and feel soft.
All the Best:thumb:
When they have:
First losing trade they become sad.
Second losing trade they become frustrated and lose patience.
Third losing trade they become nervous and enter a blind position.
Fourth losing trade they become totally lost.
But if you have be trading with effective stop-loss technique the loss would be minimal and u can recover it in the Fifth trade and move on.(Track your performance on Weekly or Monthly basis rather than trade to trade or daily basis)
Don't worry about the price it is moving now. Concentrate on chart(Buy at support and Sell at resistance) and news(to guess the momentum of the market)
When market opens give some time to settle and enter position along with chart movement.
While entering position be patient and feel soft.
All the Best:thumb:
Hello People,
It rather depends on what you mean by 'safe'. Day trading may not suit many individuals, who over the long term would probably get better returns from an index tracker. If on the other hand, a trader can make consistent profits from day trading, then it could be viewed as 'safer' than long term buy and hold. Day trading for beginners is like taming a lion, except more expensive. It's a risky and challenging pursuit: buying stocks and selling them again in the same day, making money off tiny fluctuations in the price of a stock over a six-hour period. For many years the tools of day trading were not available to the average investor. Today with high-speed Internet connections and a lot of nerve, anybody can day trade. If you have a stout heart, here's what you can do to avoid common and costly mistakes. Keep in mind:
1. Develop a business plan.
2. Create a trading plan.
3. Anticipate losses.
4. Expect the unexpected.
5. Practice trading.
6. Stick to your trading strategy.
7. Stay on top of the news.
8. Adapt to changing markets.
9. Remember that "hope" is not a trading strategy.
10. Use a stop-loss with every order.
11. Use limit orders.
12. Avoid "chasing" stocks.
Happy Trading
It rather depends on what you mean by 'safe'. Day trading may not suit many individuals, who over the long term would probably get better returns from an index tracker. If on the other hand, a trader can make consistent profits from day trading, then it could be viewed as 'safer' than long term buy and hold. Day trading for beginners is like taming a lion, except more expensive. It's a risky and challenging pursuit: buying stocks and selling them again in the same day, making money off tiny fluctuations in the price of a stock over a six-hour period. For many years the tools of day trading were not available to the average investor. Today with high-speed Internet connections and a lot of nerve, anybody can day trade. If you have a stout heart, here's what you can do to avoid common and costly mistakes. Keep in mind:
1. Develop a business plan.
2. Create a trading plan.
3. Anticipate losses.
4. Expect the unexpected.
5. Practice trading.
6. Stick to your trading strategy.
7. Stay on top of the news.
8. Adapt to changing markets.
9. Remember that "hope" is not a trading strategy.
10. Use a stop-loss with every order.
11. Use limit orders.
12. Avoid "chasing" stocks.
Happy Trading
As per the experts definition, day traders are those investors who makes rapid trades and then tends to close them at every day end. Some of them uses leverages too but i guess using high leverages may leads to higher damages if you are not familiar to the market volatility. So day trading is good to make some extra bucks but high leverage should be avoided.
Trading is not only risky but it is impossible to make money from trading consistently in the long run..due to the fractal nature of the markets..Markets geometry simply does not allow to make money in trading in long run...Only money is made in investing because stocks have value..
Have a look at this thread..
http://www.traderji.com/community/t...fe-but-its-good-to-give-up-in-trading.105874/
Have a look at this thread..
http://www.traderji.com/community/t...fe-but-its-good-to-give-up-in-trading.105874/
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