| Intraday trading or simply day trading is the risky | | | | day trading whilst risky fills that void. |
| venture of trading stocks very quickly, normally | | | | Intraday trading shares many parallels with gambling. |
| closing all positions by the end of the day. With all this | | | | Don't get me wrong that's not a bad thing because |
| risk there must be a lot of reward right? Well yes | | | | as with professional gambling if you can design a |
| and no, if you buy and sell emotionally at random | | | | system with a positive expectation and manage your |
| times then you lose money faster due to | | | | money correctly you can make money. But on the |
| commissions on every purchase. The stock market | | | | other hand gambling can be compulsive and it can be |
| has been in an overall uptrend if we look back over a | | | | dangerous, so researching professional gambling might |
| hundred years but day trading is too fast to capture | | | | be a good place to get educated first. |
| this very good bet on the stock market. | | | | A lot of new people hit one of the biggest problems |
| However day trading does open new strategies such | | | | of gambling. Money management. They realise if they |
| as scalping that can't be achieved over longer periods | | | | double a bet every time they lose then eventually |
| of time. If you are an advanced trader it could | | | | they'll make all their money back and a profit. |
| increase your overall profit, although one of the catch | | | | Obviously this is terrible money management because |
| 22 scenarios is that already established traders often | | | | of how far in debt it will put you, but it shows that |
| would rather accept the risks they already accept | | | | one of the biggest problems is how much to bet. |
| than enter a new venture. | | | | You can limit how much you lose per bet in trading |
| One strategy that exists in intraday trading is | | | | by using stop losses, so that you have a fine control |
| scalping, attempting to buy at the bid price and then | | | | over the exact percentage you may lose. Just |
| almost immediately sell at the ask for a quick profit. | | | | because you lose 60% of the time also doesn't mean |
| This can be an intensive and potentially exciting | | | | you will lose money if 40% of the time you make |
| process which is the allure of day trading. Often | | | | far more than you lost by getting stopped out of |
| people feel that if they are not physically working | | | | the market. |
| hard that they are somehow unentitled to profits and | | | | |