Day Trading has become more popular again in the past 5 years and it has a lot to do with the volatility in the stock market
. The slow and steady rise in the stock market in the 80s and 90s has drastically changed to a market that can move up and down like a roller coaster in an instant. The increase in volatility can be attributed to technology as nowadays people get access to information much quicker and therefore, people are able to react to good or bad news faster. This presents an opportunity for people who are actively trading the stock market on a short term basis.
Since the worldwide recession started in 2008, many people lost their jobs and were forced to create their own jobs or become self employed because they couldnt find any suitable jobs. Many people looked at trying to make money in the stock market on a daily basis by becoming day traders. For those who dont know, Day traders are people who buy and sell any financial instrument within the same trading day and all their positions are closed before the market closes each day. You may have guessed that a lot of these day traders lost money and you were right. Many people perceive day trading as a path to wealth and the lifestyle of financial freedom. However, this competitive game of day trading is extremely risky and the odds are against you in favor of failure. In fact, there are studies out there that show that over 70% of day traders lose money in their first year of trading. However, for those who are comfortable with this type of environment it can be a very profitable and rewarding venture. Let me share with you my experiences as a day trader and how you can become the other 30% who succeed as day traders.