Short term and day trading are the two strategies mostly utilized by the traders and both of them have their own advantages and disadvantages; of these some are not the absolute truth and here we bust the myths of online day trading and give you an insight into the actual facts to help you make your own decision.
Some of the myths of online day trading
Day trading is riskier than short term trading or investing
Let me bust this myth of online day trading; in actuality short term trading is far riskier than day trading. In any single trade the risk in short term trade or long term investment is greater than in day trade. It is the number of trades in day trading that gives the wrong notion of it being riskier.
Day trading is like gambling
For that matter any trading is akin to gambling if you go without a proper plan or control; taking on anything you are unprepared for amounts to gambling. Day trading needs enormous practice, great focus and dedication to a set of rules where the key difference is whether the odds are in your favour or not. If you are unable to put the odds in your favour than any trade becomes a gamble but if you have your eyes on the ball day trading is so very predictable; as much as receiving a pay check from your job.
Day trading is very stressful
Which trading is not stressful if you are losing money? So it isn’t the type of trading that is stressful; it depends on whether you are making profits or running into losses. One feels the stress of day trading due to two factors; poor trading and not being able to adjust emotionally to the fast pace of the trade which requires faster response due to it being made in real time. In day trading one has not much time to analyze properly and then respond with a decision. One has to be well versed with the trading methods and trade with emotions in check to stay away from stressful situations and this is achieved with practice.
Day trading is a man’s game
This myth of online day trading is surely busted since today you can see that anything a man can do a woman can do better. You can see for yourself that some of the best traders in the world are women and this can be cross checked with an article from Investopedia where some of the top female traders are highlighted.
Day trading ties you up the whole day to your computer
This is a myth of online day trading that makes you actually laugh; most day traders tell you that on any typical day it is an hour and a half in the morning and two hours in the afternoon that they sit at the computer. And even during time one need not glue their eyes to the screen watching the markets like a hawk.
There are so many myths like this of online day trading which are nothing but myths so don’t let them intimidate you on getting into day trading; get yourself a good online trading platform and start off now that we did bust the myths of online day trading, though not all at least a few of them.