Hello everyone
I am just attracted by this topic.There can be any number of points in favour or against daytrading.And also this is the most abused word in trading.The reason is very simple.Those who have done daytrading have lost miserably.Instead of analysing their faults and weaknesses,they just abuse the system.First and foremost daytrading is different in totality in comparison to the other forms of trading.But no one wants to accept this fact.People invest and buy a few shares and forget for 6-24 months,somewhere in between they remember they own some shares or some one informs them that the market has gone up.Now they wake up,sell the shares and make some profits.If these people want to indulge in daytrading,the results are obvious.
One can not sit in the brokers office and daytrade,for the simple reason that a brokers office does not have the facilities which are a prerequisit for daytrading.So one should have his own infrastructure for daytrading.A daytrader should be familiar with the basics of technical analysis,should devote a lot of time,should have patience,should have sufficient money to burn.
Infrastructure includes a computer,good internet connection,technical analysis software,a good anti virus,a power backup for atleast 6-7 hours.
A daytrader should do lots of home work,and before the market starts should have prepared a list of shares for long and short positions including their entry,exit and stoploss levels.
A daytrader must spend the entire trading schedule from 9-45 to 3-30 before his system,and spend atleast about 2 hours in the evening doing home work for next days trading.
If a person does not have the necessary infrastructure in place and can not spend 7-8 hours for daytrading then it is but natural he will be poorer at the end of day.
A lot can be written on this topic,but I wish to end here,lest I am accused of boring or irritating others members.Thank you,and I wish all the best to all members.daytrader