The Benefits of Day Trading

Why Day Trading? What are the benefits of day trading?

Day by day, more and more people are getting attracted to day trading, because of the numerous benefits it poses. It attracts more youngsters than aged. It appears simple, easy, and lucrative.

The day trading benefits varies with person to person. What one perceives as benefit, may not be so for other.

    I discuss here what lot many traders around me thinks about it.
    So the benefits of day trading are:

  • It eliminates overnight risk.

  • The market can fluctuate 5 to 10 percent overnight. A stock which is making higher high and higher low, and which has closed at a new high, can open on the next day at such a low level, wiping out ten days of profit. Any disaster, political development or any news will not disturb you. Day trading completely eliminates this havoc. You can sleep like a baby.

  • It offers an opportunity to leverage the capital investment.

  • Many brokers offer their clients several (even twenty) times more than their capital margin. This provides an opportunity to control more investment than is available. There by a prudent trader can multiply her/his profit many times. He can earn many times more money, with a small investment, than he can earn in any other business, with the same investment. This leveraging attracts many small investors.

    (Word of caution: Leveraging is not good for beginners)

  • It provides ample opportunity to learn.

  • It provides ample opportunity to learn and test variety of trading patterns and technique, in relatively short time span. Time is a costly, non replenishable resource of man. Any method / gadget, which reduces the time required to perform / achieve a job / project, increases overall efficiency / profitability of man. All inventions are towards achieving the same.

  • Day trading as a Home based business.

  • Day Trading can be taken as a home based business. It does not require any major infrastructure. No shop; No furnishing; No workers; No boss. Home makers, moms, disabled persons – who find it difficult to move around, can find a business at home.

  • Psychological satisfaction of challenges.

  • Continuous bull and bear ride gives a sense of accomplishment, by challenging their ego. It is like a bull fight. The adrenaline surge created by day trading produces a similar effect as any adventurous games. It thrills them and gives a kick.

Each lover finds a different reasons to love.

The benefits of day trading may be perceived as educative, thrilling, time pass, interesting, boring, scientific, artistic, adventurous, fun, game, intellectual, spiritual, a honest way of earning, second income, alternative income or the only source of income.

I wish you best of everything.



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