Some investors can become addicted to day trading. Day traders sit in front of computer screens and look for a stock that is either moving up or down in value. Top daytraders have a proven day trading system. Day Trading is a process and could take years to achieve the desired results, unless you are following a proven daytrading system. Market professionals agree volatility definitely is a plus for the day-trader. A very simple formula for stock market success is to risk less than 3% of your total account value on a single trade.
Day traders will holdi a stock until it goes up to about five or six cents and then start selling. A day trader will rarely hold a tock overnight as there are many other opportunities and a stock that takes hours to move is not worth holding. The day-trader must adjust profit objectives to the shortened time horizon of day trading. Only you can decide if you have what it takes to be a successful day trader. The advantages of day trading as a job are numerous. When day trading, set yourself a limit on how much you are prepared to lose on any particular trade.
Day trading is not a get rich quick business. Day trading is an inherently variable business. Does day-trading offer advantages above and beyond position trading? By definition, day-trading means you exit at the end of the day, so your profits must at least cover your commissions and slippage.
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