In a previous post we wrote about the benefits to Day Trading, which were amongst others, no risk overnight and better return on capital, but there are always 2 sides to a coin. So in this post we will write about the downside to day trading.
Most People Cannot Day Trade Next To Their Job
When you swing trade or long term trade you can do your analysis after work or in the weekend thus making swing trades or long term trading perfect as a secondary career. But when you Day Trade then for most people it means trading while they are working making it very difficult. First of all day trading takes full concentration and secondly what happens if your boss catches you trading?? So if you want to become a successful Day Trader you ideally have to quit your job which can be a costly thing to do. A solution to this is to get a part time job in the evening and/or weekends. But regardless what you do this is a down side to Day Trading.
Day Trading Can Be Very Stressful
Looking at 4 monitors each showing 4 charts can be quite stressful. You do not want to miss the next winning trade so your eyes are glued to all the screens and charts. A stock starts to move only to stop or another stock moves and this time it is real. You have to find your trading dome and enter the trade and all within a few seconds. This can be very stressful and to make it even more stressful, you have to monitor all your open positions at the same time.
Analyzing charts real time can be very stressful as you know you have a limited amount of time to analyze the charts and then not making any mistakes. This can and will stress you out some days!
So it is important you work on reducing stress and learn to handle the pressure so you avoid making some trading mistakes. These mistakes can cost you so do not shrug off the idea of working on stress relief methods.
In our next post we will look into some mistakes Day Traders often make.
When you swing trade or long term trade you can do your analysis after work or in the weekend thus making swing trades or long term trading perfect as a secondary career. But when you Day Trade then for most people it means trading while they are working making it very difficult. First of all day trading takes full concentration and secondly what happens if your boss catches you trading?? So if you want to become a successful Day Trader you ideally have to quit your job which can be a costly thing to do. A solution to this is to get a part time job in the evening and/or weekends. But regardless what you do this is a down side to Day Trading.