Monthly Archives: December 2016

Benefits of Day Trading


Most traders would say that the benefit of Day Trading is the money. You can become a millionaire while sitting in the comfort of your home but this is rarely the case as Day Trading is one of the most difficult careers to succeed in. However, this post is not about the above mentioned benefits but more about benefits in Day Trading compared to other trading styles.

Day Trading Removes the Overnight Risk

The biggest benefit of Day Trading is that you are flat at the end of day. You are not holding any positions overnight, therefore making your trading risk free when you are off from work. There are plenty of risks during the day but when you turn off your computer all hell could break loose and you would not lose any money (if you stayed disciplined and closed out your positions). That is a great feeling and gives a lot of peace and quiet at night.

Stock Market Chart Analysis


We have mentioned several times that there is a lot more to trading than just buying and selling. We have also emphasized many times that it is very important that you analyze the charts to determine what your bias should be; long, short or even stay out. Sometimes the market is just too choppy to trade so staying on the sideline is the best you can do. We also mentioned that trading psychology plays a huge role in your trading. Without the proper mindset you are more than likely destined to fail as trader. A good example is that if you cannot control the greed emotion than you could easily start trading with too big a position and then when you hit a losing trade not be able to cope with the loss. But we can take it even further by saying that there is more to stock market education than just learning to analyze charts and controlling your emotions.

Learning to Structure Your Trading Should Be A Big Part Of Your Education

When you start learning about trading you are exposed to many new things you have never heard about before. These things could be money management, risk/reward, trailing stop, filters and so on. On top of all that you are also exposed to many different indicators and chart patterns. After you finally learn about them you need to put together your trading plan. You think you are almost finished with your stock market education because you have learned so much and boiled it down to the few indicators and/or chart patterns you want to use. But this could not be further from the truth. You are missing a big part and that is structuring your trading. This is split up in 2 equally important subjects, trading plan and record keeping.