As mentioned above, day trading as a career can be very difficult and quite challenging.
- First, you need to come in with some knowledge of the trading world and have a good idea of your risk tolerance, capital, and goals.
- Day trading is also a career that requires a lot of time. If you want to perfect your strategies—after you’ve practiced, of course—and make money, then you’ll have to devote a lot of time to it. This isn’t something that you can do part time or whenever you get the urge. You have to be fully invested in it.
- If you do decide that the thrill of trading is right for you, remember to start small. Focus on a few stocks rather than going into the market headfirst and wearing yourself thin. Going all out will only complicate your trading strategy and can mean big losses.
- Finally, stay cool and try to keep the emotion out of your trades. The more you can do that, the more you’ll be able to stick to your plan. Keeping a level head allows you to maintain your focus while keeping you on the path you’ve selected to go down.
If you follow these simple guidelines, it’s possible that you may be headed for a sustainable career in day trading.
Is Day Trading Illegal?
Though day trading is not illegal or unethical, it can prove very risky. Because most day-trading strategies employ leverage in margin accounts, day traders can potentially lose more than they have invested and end up in significant debt.