| To make Surefire Profits in Stock Trading the key is | | | | overnight. All trades are exited before the close each |
| to know yourself. | | | | day... unless you screw up of course and can't get |
| The thing about investing is that your success is | | | | out. But even then you can still sell or hedge in the |
| going to depend on your emotions and your control | | | | aftermarket. |
| over them far more than on your learning and skill. | | | | 2. A day trader is active in the market making two |
| I will give you the trading tools you need to succeed | | | | or three or even up the 100 or more trades each |
| but your emotions can still sabotage your efforts. | | | | day. |
| So it's very important for you to find the trading | | | | What are the advantages of Day trading? |
| style that best fits for you. | | | | 1. No overnight exposure |
| Then you're ready for the big money! | | | | 2. You can take short positions without worrying |
| And of course there are endless strategies to | | | | about borrowing the stock or being responsible for |
| choose from. So let's start with an easy question: | | | | the dividend. |
| "Are you a short term or a long term oriented | | | | 3. You can trade quick market swings both up and |
| investor?" | | | | down. |
| Day Trading or Swing Trading... what Stock Trading | | | | 4. You reduce your risk. |
| Strategy appeals to you the most? | | | | What are the disadvantages? |
| The active day trader approaches the game with an | | | | 1. Day trading takes more work and more focus. |
| entirely different perspective to the swing trader | | | | 2. You must be watching the market every second |
| (who holds for 1 week to 3 months) or the buy and | | | | or you miss your entry or exit points. |
| hold investor. We won't be covering buy-and-hold | | | | 3. It's very stressful to live on the edge all day every |
| here because that's not trading... it's investing. | | | | day although some people thrive on it. |
| So what are the advantages of day trading versus | | | | 4. Your transaction costs can often eat up most of |
| intermediate term swing trading? | | | | your profit on a bad day. |
| There are two major characteristics that define a | | | | Swing trading on the other hand is somewhat less |
| day trader: | | | | frenetic although it has its stressful moments too. I'll |
| 1. A day trader never... ever... holds a position | | | | deal with that in another article. |