What’s is Day Trading? In a few words, day trading is a trading approach when you open and close trades within the borders of a single day.
Of course, such a trading approach gives traders a lot of amazing opportunities as well as it requires good knowledge, experience, and discipline. I want to share with you my point why day trading should be in the trading arsenal of every trader who wants to get a stable income for living and diversify a trading portfolio.
What are the benefits of Day Trading? 1. You can get trades in different market conditions. The market can be bullish, bearish, or in a range - as a day trader you can trade in all these conditions. For the crypto market, it is an obvious advantage when the market becomes bearish and you can’t trade profitably as a swing or a long-term trader.
2. You trade within the borders of a single day and it means you control all your trades. You close your trades and sleep well, without thinking how the market will move during the night. The same goes for situations when you are not at your laptop but you have active trades.
3. A lot of trade opportunities which markets give you every day. You can pick the most interesting and strong which perfectly match your trading style.
4. More trades mean better income you can get from the market. If we compare day trading with swing and long-term trading, we will see that day trading is a much more profitable approach. It is possible to make 1-5% per day as a day trader when a swing trader will dream about 10-20% per month. As for investors, they focus on 20-30% annual income.
5. More trades give you more experience and knowledge. It means you improve your trading much faster using new experience and knowledge. Day trading can highlight the strong and weak sides of your personality as a trader. You have an opportunity to improve yourself and it will need less time than if you were a swing/long-term trader.
6. More income from day trading means less capital you need to start from. You can start from 100$, turn it into several thousand, and for many of you this capital will be more than enough for your day trading. You will be able to generate enough profit for living trading with 3000-5000$. For swing trading, you will need 20 000 - 50 000$ and for investing it will be better to have 100 000$.
7. The path to your financial freedom is shorter with day trading. If you want to become a full-time trader and you don’t have good capital - day trading is the best choice.
8. Day trading keeps the motivation to move forward to your goals. You see feedback from your activity in real-time. With swing and long-term trading, you need to wait for days, weeks, and months in order to get a result. Sometimes it is boring! With day trading you have emotions every day and it is cool!
9. Day trading in combination with swing trading/long-term trading / Algo trading can give you a system with very strong risk diversification and smart money management. In this model, day trading will be responsible for short-term income which can be invested in other activities.
10. Day trading is the best way to build your brand and an audience. People like action, emotions, and day trading can produce catchy content for them. It gives you an opportunity to start your own business in the Financial field and do cool things together with interesting people!
There is an opinion that day trading = gambling!
NO! DAY TRADING IS NOT GAMBLING!
It is a trading approach that gives high profit not because of ignoring rules of proper risk and money management, but because of leverage and a high number of trades per day, week, and month.
Definitely day trading worths your attention. It is an opportunity for you to boost your trading in a shorter period of time, get everything you need for profitable trading, gain a lot of trading experience. Day trading is the best approach that can help you become a full-time trader even if you don't have solid capital. As you can see, there are many reasons to try day trading.
For many traders, day trading looks impossible because of a full-time job. But I have ideas how you can combine your day trading with a full-time job. Do you want to read about it? If yes, please support this post with your LIKEs and comments and I will write a new post within this week.
Great idea in general, nice chart but ... what are the buy/sell triggers? It is easy to put the green/red arrow on chart after thigs happend, but how do you know IT WILL HAPPEN?
@akwoska, this post is about day trading as an approach, but it is not about the exact trading setups. Yes, I know how we could trade those trade opportunities. But this post is about the benefits of day trading.
kojack2121
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@akwoska, you need to learn the technicals and fundamentals. its hard from the start as you go on you will learn it.
ecicic
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Hey @DLavrov I do respect your thoughts and idea's hence why you are on my list of followed individuals since 2017 and its a small list. I will say tho i completely disagree with this advice. 90%+ of day traders lose money and this is generally not sound advice to give random people. Most day trading "teachers" do not make money day trading but rather selling programs and courses. This is something to be beware off. In general its much easier to see where the market is headed in a few months/1/3/5 years than the next 5 mins. Most new traders havent grasped the concept of risk management nor how to size trades properly and will make all the rookie mistakes. They are already holding crypto which is a volatile appreciating asset, and just holding that long term is a skill that most people can't handle.
bm8ter
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@ecicic Excellent reply. I thought this post was a little irresponsible, and definitely not fact checked . Where did these statistics come from ? I'm new to technical analysis and working towards becoming a day trader , and I have to say this advice, and these statistics are contrary to everything I have come across up to this point in my studies. I would really think twice before following anything advice like this if you are new to trading.
DLavrov
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@bm8ter, guys, in order to say that day trading is not a profitable approach, you must have solid arguments. Traders fail not because of day trading, they fail because they do stupid things. It doesn't matter who you are. You will fail everywhere doing stupid things. I ask you, why not to focus on getting solutions how to succeed in day trading?
@ecicic, thanks a lot for your interest to my work! I'm very grateful!
Yes, you are absolutely right saying about 90% of failed traders. But are you sure that all of them are day traders?
From my own experience, knowledge from other experts, direct messages from many traders, I can say that swing and long-term traders fail as well. I also want to do that from my point the majority of traders do their best to fail! Sometimes it looks like that their goal is to fail. Because in other way I have no ideas how we can explain their stupid mistakes and stupid trading. Traders fail because they don't do the right things. It doesn't matter day, swing or long-term trading or any other activity... you will fail if you don't know how to do your job properly. That's why I'm sure that if day traders follow the right plan, get the right knowledge, gain good experience, use workable tools, get support from more experienced traders - they have good chances to succeed.
Yes, I know that there are many "gurus" who offer their courses and products and it si their main source of income. But why not to follow those who you trust? Why not to think before buying any course and try to understand how it will help you?
I think it is the best way to join trading communities in order to become good day traders. I followed several of them and I should say it really helps to move faster and avoid mistakes. Of course, you have to pay for this service, but do you know people who work for free???
There are many profitable day traders and I want to say that day trading is 100% workable approach that can give profit in the long run.