Nov
9
Should You Be Day Trading For a Living?
November 9, 2009 | Leave a Comment
If you mention day trading for a living to someone who has never traded before, you can be rest assured that they’ll immediately ask you why there aren’t more people doing it if there’s really so much money to be made.
The question does not seem to be rooted in a sincere desire to get at an actual answer as much as it is used as a convenient way out of making a decision to get involved. For those individuals seeking a sincere answer to the question, it is important to point out there is a huge logic flaw present in it. That logic flaw is the use of the word “invest.”
Right off the bat, it is critical that those interested in this type of revenue generating understand that day trading is most definitely not a form of investing. It is trading. There is a huge difference between the two. Investing is all about the value of money over time.
Yes there are high risk investment opportunities out there, but you need to bear in mind that whether it’s a high risk investment or whether it’s a conservative investment, the basic principle still involves holding onto your investment for a certain period of time.
On the other hand, when you’re day trading for a living, you certainly won’t be aiming to hold onto your money. To the contrary, you should actually be trying to buy and sell on the same day. As you can well imagine, such a process is by no means a stroll in the park. Yes, of course there is a huge potential to make large amounts of money by day trading for a living, but you need to bear in mind that there is also a certain amount of risk.
To answer the original question, this is why so many people do not embark on day trading for a living. It simply is not for them and there is nothing wrong with such an assessment. Some people are just more cut out for the world of day trading than others.
Furthermore, you need to bear in mind that day trading for a living can involve huge amounts of money, and a tremendous amount of effort. This alone is enough to put many people off.
If you feel you have a knack for the markets and you’re confident enough to begin trading, then of course it is possible for you to make a huge amount of money. You can be rest assured that there are some people who have begun day trading with virtually no money at all, only to end up making millions of dollars. Admittedly, this is certain not the case for everybody, but at least you can look to these people for inspiration if you’re currently sitting on the fence with regards to becoming involved with day trading.
Contrary to what you may have heard, you can start day trading with a very small amount of money, and in fact, this is actually advisable, irrespective of how wealthy you are, so that you can first gain some experience.
By no means is day trading for a living for everyone, but for those with find it to be a rewarding adventure, there’s a lot of money to be made. The bottom line is; if in your heart you don’t believe that day trading for a living is for you, then you should walk away. On the other hand, if you have a feeling that might enjoy it, then by all means go ahead and give it a go.
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