Day trading for life? Stop going to your day job!

Are you mired in debt? Would you like to earn money and change careers? Consider the benefits of day trading for life.

Now, before we go any further, let’s get something straight. Day trading is not a “make millions in your spare time” investment opportunity. Day trading, and doing it right means treating it like a job. Day trading for a living can be a lucrative career, but in order to make money, you need to understand the basics of how the stock market works and some pretty advanced concepts. Fortunately, there are no barriers to entry other than having the money to invest and the time to learn.

We will focus on education first; there are many places on the internet where you can buy the “day trading guru” program as a package. We’ll walk you through what day trading entails so you can gauge exactly what you need in a software assistant.

At its core, day trading is betting on the volatility – the degree of change – that the stock market will experience over a period of time. Rather than following a buy-and-hold or even a buy-and-ignore strategy, except for dividends, day trading focuses on betting on the value of individual stocks and how they will move up or down at a given time. a period of time.

This is a good time to be a volatility player; markets have been, broadly speaking, all over the place since September 2008, and almost any news can cause them to spike or crash. Markets (and stocks) fall in value when they are sold; this is the basic principle of supply and demand, and as someone who wants to make a living day trading, you will live by this principle.

One of the first things day traders learn is how to work with both market swings; if you expect a stock to fall in value, the key is to borrow a stock, sell it while it’s high, then buy a replacement stock to return to the person you borrowed it from when the price falls. This is called the short selling method. This is the opposite of buying a stock when it is low and selling it when it is high.

Another technique that traders must master is the use of specialized loans called “leverage”. It is a short-term loan that a trader takes out, uses to buy capital that they believe will move in the direction of their predictions, and then pays off after making a profit.

For example, if you have a leverage of 20:1, for every dollar you invest, there are $20 in short-term loans. If you want to ditch the drudgery of your day job, learning how to use leverage effectively will be essential to making money.

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