So you may have heard of day trading and how much money you can make in one day?
Or you may have met someone who claim to be an expert in the field and want to give it a try?
If you have ever experienced day trading, you would know how chaotic the market can be. With the current economic crisis, it is more fluctuating than ever and opportunities to make profit are more difficult to find than ever.
If you are one of the beginners about to invest in the market, then be aware that you are likely to fail if you don’t have a proper day trading plan. Normal stocks fluctuate due to a lot of outside social and political influences, and it may be near impossible to understand them to make informed decisions.
On the other hand, day trading systems cut out these external sources and you are only looking at the ups and downs that happen within a single day. In other words, you earn profit by relying on luck rather than skill, which is why it is such a popular option amongst new buyers. If you decide to invest, it is important to keep constantly synchronized with minute to minute fluctuations in market values.
Why is this day trading system preferred over traditional stocks?
In these times of economic turmoil, there is great uncertainty of how stocks would do in the future.
Although the advisors tells us that long term stocks would only go up in the long term, the investment environment is not the same any more as it was 20 years ago.
Currently, most investors are trying to sell their stocks due to decreasing confidence, and market timing is favored in bear markets where losses occur.
Stock picking is only the preferred means in bull markets where people think that stocks would rise. Psychology is important in day trading and timing is difficult to achieve and predict.
A new style of play is involved: you need to sell fast and buy fast, and in order to survive you would have to adapt. This is not but day trading and you can do it in a number of ways. The most simplest being currency futures
There are certain software or “robots” that claim to predict when it is the best time to sell or buy up stocks. They have been developed to detect and analyze trends in the rise and fall of stocks. Although they are controversial and has been criticized by some groups, some claimed that they have been successful, so use them at your own peril.
Remember that nobody can really predict how the stocks would do, so rely on your common sense as well.