The practice of day trading is becoming highly popular among traders who seek to make quick earnings. Day trading can be beneficial to calculate return and making good money if you have a sound understanding of the concepts that come into play. It requires you to have a sound understanding of advanced tools.
But can day trading be considered a reliable option for earning a living? Let us find out!
What is Day Trading?
It is the practice of purchasing and selling a bunch of assets in a day. It is much different from traditional trading. Here, traders take advantage of the inevitable price movements variations that occur during a trading session.
Can Day Trading Be An Occupation?
Day can be considered a full-fledged occupation, and many depend on day trading to earn a living. If you think it is easy and doesn’t require much work, you are wrong!
People who rely on day trading for a living have a lot of patience. They must be able to make logical judgments on the go, which comes from having a sound knowledge of the stock market. They must also be able to use tools like a personal index and a trading view chart.
If you always find yourself making hasty calls, day trading won’t be the right fit for you.
For example IPO prices can be volatile, and the excitement surrounding a new listing may lead to overvaluation.
The Upsides and Downsides of Day Trading As A Job
Let’s start with the perks of taking day trading as a job:
- It will allow you to operate on your own time. Be will be in charge of your working hours, free time, and holidays.
- There is no need to physically travel to a workplace; you can work from the comfort of your home. Also, you don’t need many resources to start; One computer and a stable internet connection will do the trick.
- You don’t need to undergo any Formal training. You can familiarize yourself with the important concepts through free or paid tutorials on the internet.
Now let’s take a look at the challenges of day trading for a living:
- You always have to be ready to face the risk of loss. Which is why you must learn to assess and manage the risks with the help of trading view chart.
- You must be disciplined. Every move you make will count.
- Day traders often lead solitary lives. This can be rough for your mental health.
- There is no fixed paycheck at the end of each month. The money earned will depend on your performance.
Perks of Day Trading Over Positional Trading
Positional trading is the practice of holding a stock for a specific period, which can be a week, months, or even years. Day trading, on the other hand, is when traders close all positions by the end of the day.
Here are a few benefits of day trading over positional trading:
- Your invested capital won’t be stuck in one stock.
- Trade output is calculated daily.
- You can earn profits through falling stocks and quickly selling the assets.
Conclusion: The Bottom Line
Day trading might look easy from the sidelines, but it is not. It takes a great deal of patience and hard work to earn a significant amount of profits. Also, if you can master the art of day trading, it can be considered a reliable source to earn a living. If you are a beginner you can take help of an investment app to help you make wise trading decisions.
Yes, there are many perks, but also keep an eye out for the challenges related to day trading.