Day Trading: Drawbacks To Day Trading As A Beginner

Day Trading: Drawbacks To Day Trading As A Beginner

If you're a beginner when it comes to trading the markets, you're wondering exactly what day trading is all about. Fortunately, day trading is actually fairly simple to explain.

When you're day trading, this means you're closing out your transactions on the same day you open them.

* You're not worrying about your profits (or losses) overnight because your work is done when the market closes for the day

* You're able to quickly re-allocate your day trading capital into the next trading opportunity you see as long as the market's open, you're ready for business

* By taking many day trading opportunities, you can generate a stream of regular day trading profits in quick succession

However, day trading isn't as easy as it looks and there are some disadvantages to making money by day trading. These drawbacks include:

* Time Commitments: You're normally spending a few hours a day in front of your computer to watch the market for profitable trading opportunities

* Fear-based Decisions: Without a good system in place, you're making "snap decisions" where a few moments' hesitation will cost you a good entry point or a lost profit on an existing trade

* Accumulative Stress: You aren't making money unless you're actively following the market on sometimes a minute-by-minute basis this can be very stressful also

In fact, those reasons are why many day traders aren't successful and their dreams of making $100,000 or more each year are shattered. Despite their high hopes, probably 90% of day traders give up after losing more money than they can stand. The stress is too much!

So how do winning day traders succeed where the losers fail?

Do they have nerves of steel and cast-iron stomachs to handle the stress? Are they like emotionless machines who don't feel anything when they're day trading? Actually it has everything to do with trading psychology.

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