This article explains a few things about Day Trading, and if you’re thinking about quiting your job to go into this full time, read on first to see if you are ready for this!

Daytrading brokers agree that:

• 90% of traders end up losing money,
• 5% of traders end up at break even and
• only 5% of them achieve consistent profitable results.

Many day trading professionals will tell you that 2% is too much to risk on a single day trade.  But this does not mean that you will lose.  It just means that you need to be well educated in trading, patience and have strict discipline.

Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations.

Breakout traders like to enter the market on the breakout of a previously identified range. Once you’ve found a day-tradable market, you can expect the track to be stable. A day trader will rarely hold a stock overnight as there are many other opportunities and a stock that takes hours to move is not worth holding.

The more information about Day Trading you know, the more likely you will succeed in Day Trading. Read on for more facts.

Good day traders do not rush into trades. Some of the more commonly day-traded financial instruments are:

• stocks,
• stock options,
• forex (In contrast with other financial markets where you require the full deposit of the amount traded, this market requires only a margin deposit), and
• a host of futures contracts such as equity index futures, interest-rate futures, and commodity futures.

A true day trader is a professional, who employs discipline and uses the latest in technology to execute day trading orders.

Steal Our Simple Forex Trading System!

Many day traders end up losing a lot of money because they fail to make trades that meet their own criteria. A study in 1999 found that those day traders that made money the profits were made from just one trade following a tested system.  To get an example on a tested sytem on How To Profit From Forex Trading, click here.

The advantages of day trading as a job are numerous. Practice your day trading using a simulated trading system before using real money. This step is very critical.  Practice before you use real money.

Day trading has become an online phenomenon in the last few years which has resulted in manuals and courses on how to successfully day trade. Pick one of the financial instruments that suit your risk level and your comfort level.  Absorb the training materials and PRACTICE before you start your daytrading career.

Happy Trading,
Keith Choy

Tag: daytrading, day trading, stock trading, option trading, forex trading