Active Traders often believe that they are grouped into two categories: Day trading or intraday trading and the swing trading. Both the two types of trading gives you profit from short-term stock movements. However, it is believed that intraday trading strategy is the better one than the swing trading. Following are some of the pros of day trading versus swing trading.
Intraday trading involves making dozens of trades in a single day, based on technical analysis and sophisticated charting systems. The main goal of the day trader is to make a living from trading stocks. They believe in making small profits on numerous trades and thus minimizing losses on unprofitable trades. In this type of trading, traders typically do not keep any positions or own any securities overnight.
Latent to make considerable profits: One of the biggest lures of day trading is latent for stunning profits. However, this may only be a possibility for the rare individual, who possesses all the traits like decisiveness, discipline and diligence required becoming a successful day trader.
Believe in yourself: If you want to be a successful day trader then you need to work alone, independent from the whims of corporate bigwigs. You can have a flexible working schedule, take time off whenever needed, and work at your own pace, unlike someone on the corporate treadmill.
Bright moments: Though all the day traders love the thrill of the market and other professional’s day in and day out. You must never think that you cannot try out Intraday trading on your own. Learn from your mistakes and only a few things you need to keep in mind is never risked more than 2% of your trading capital on every trade. The study proves that no one will go bust in trading if they trade with proper risk management.
No expensive education is required: If you want to get jobs in finance, then having the right degree from the right university is a qualification just for an interview. However, to do Day trading you do not require any Expensive Education from a particular school. There are no formal educational requirements for becoming a day trader. Various courses in technical analysis and computerized trading may be very helpful.
The benefit of Self-employment: While practicing day trading, you earn your bread. Thus, you are a self-employed individual.