Although day trading holds the promise of handsome profits when approached professionally, day trading is not especially easy to learn. That is, if you want to learn how to enter, manage, and exit trades profitably on a routine basis, you need to take the time and expend the effort to learn the necessary skills. Then you need to routinely exercise discipline in choosing trades and pursuing strategies that limit risk while providing the likelihood of profit.
Is Day Trading Easy to Learn?
No single part of what one needs to learn to day trade successfully is all that difficult to learn. However, there is a lot to learn, depending on the depth of knowledge and extent of the skills that one wishes to obtain. At DayTradeSafe we train our students to the point of being benchmarked professional traders. With clear, professional instruction our students are able to learn every aspect of trading that they need to know. We proceed at a pace that allows the student to take in the necessary information and learn how to apply it. All trading should be in simulation to begin with and we do not suggest going to live trades with one’s own money until simulation trades are routinely profitable.
Is It Easy to Make Money Day Trading?
Day trading consists of trades that are opened and closed within a single trading session. This approach allows a day trader to gain profits from the normal price swings that occur throughout the day due to variations in market sentiment as well as changes in the fundamentals that eventually drive all prices. As a rule it is easier to make money when one uses a conservative strategy. These approaches tend to produce small profits in return for limited risk. Trades who use riskier approaches may make more money at times but also need to expect more losses as well!
Is Swing Trading Easier Than Day Trading?
While day trading is limited to trades that start and end during a single trading session swing trades can remain open for days, weeks, and even months. The same general principles apply to both in that one seeks to gain from price fluctuations in commodity futures, stocks, currencies, or crypto. Day trading decisions are mostly based on the use of technical indicators to predict short term changes in market sentiment. In swing trades one pays more attention to the fundamentals that drive prices. In both arenas strategies with low risk tend to produce smaller rewards and higher-risk strategies may end in substantial losses instead of the desired larger profits.
Is Day Trading Stocks Easier Than Cryptos?
The technical tools a day trader uses can be applied equally to stocks and crypto trading. But there are serious issues with crypto that day traders need to be aware of. First of all there are no real fundamentals in crypto trading. Second, wash trading is common in the Bitcoin market which distorts trading volume figures and can lead to disastrous trades. Wash trades are when someone both buys and sells to create the illusion of market activity when, in reality, there is little real interest at the moment. A third factor is the extent to which movers in the crypto markets are “pumping” a given token with lots of hype only to “dump” it at the peak leaving others to take the losses.
Is It Easy to Make Money Day Trading Penny Stocks?
Be very, very careful when day trading penny stocks. The backbone of successful day trading is accurate technical analysis. For technical analysis to be most accurate one needs to be trading something that trades at high volume and liquidity. This applies to the S&P 500, Nasdaq, Dow, Apple, Microsoft, etc. The risk with a penny stock is that if a trade goes bad there can be so little liquidity that the trader cannot exit their position before losses become huge.
Why Does Day Trading Seem So Easy?
When markets are on the rise everyone seems to be able to make money. Pick a commodity, get into a trade, sell when there is a profit and repeat daily. Unfortunately, markets do not go up forever and when they start getting volatile and then fall, many novice traders lose every trade and have no idea why. The best approach is to learn how to day trade from a professional like DayTradeSafe and become a benchmarked professional trader. Then one has the capacity to make money no matter which way the market is going and no matter how volatile it is.
Why Is It So Easy to Lose Money Day Trading?
Greed and fear are the constant enemies of all investors and traders. When markets are going up many novice traders come in using things like the Robinhood app which allows one to set up trades quickly and easily but without necessarily planning a good strategy, hedging risk, or setting stop losses. Novice traders start acting like this is a trip to the casino and their “luck is hot.” Luck has nothing to do with day trading and the markets are not big casinos. At DayTradeSafe we teach the necessary skills to make money day trading which skills include the ability to keep fear and greed out of any trading equation.