BECOME A MORE PROFITABLE TRADER WITH THE RIGHT EDUCATION

Get on our mailing list so you know when we release free training, live classes, new courses, and even discounts and promotions.

Advantages and Disadvantages of Being a Day Trader

Hey I’m Sasha Evdakov and this video I want to share with you in the advantages and disadvantages behind being a day trader. If you want to trade stocks and looking to become a day trader, it’s important to understand what you’re getting yourself into and the advantages and the disadvantages. So in case you want to change and become a swing trader, then you’ll at least know the reason behind it.

First off, a day trader is someone that holds a stock or position less than a day which is 6 ½ hours, since the trading day last 6 ½ hours. So you can hold it for 20 minutes, you can hold it for an hour, you can hold it for five hours.

It’s totally up to you, you can hold if for a minute. It doesn’t matter, but it’s less than a full day. That’s what a day trader is and that’s what they do. Where as a swing trader holds a position for multiple days, two, three days, a week, a month. For longer term position.

Let’s talk about some of the advantages behind being a day trader. Advantage number one is that a day trader has no overnight risk on gaps or earnings, because you’re hundred percent cash by the end of the day. The second thing is is that your earnings compound faster, so if you’re making money every single day, you’re able to use the money that you made from the previous day to put into the next trading day.

It allows you to really accelerate your compounding earnings time and time again. This is one of the great attractions to people for day trading is because it’s like quick money. Now also behind day trading there’s more excitement. This is typically an emotional state and a lot of novice traders are really attracted to day trading because they get to see their account fluctuating up and down up and down. And you get really emotionally tied to it, it’s like wow my profit’s going up. Or wow this really sucks, my profits going down. There is that rush of the emotions that’s happening but again like I said that’s typically for novice or beginners and it’s not a good way to be, if you’re looking to trade.

Now the next thing is also that there’s interest on overnight cash balance position for certain brokers. So if you’re able to be in cash by the end of the day, you’ll earn some interest but certain places not all of them. I think most of them do do that nowadays. So those are some the advantages behind day trading now.

You may want to be a day trader and you may like those types of advantages and that might just fit your personality. But for other people it may not work, so there are disadvantages to being a day trader and some of them include things such as support and resistance areas just really suck, they’re not very well developed such as things that are looking on the daily chart or even the weekly chart. There is a lot less support and there’s a lot less resistance in the day trading areas or levels.

Also a lot of the day trading action that happens is much work computer algorithmic. Or you can think of high frequency trading. So again you’re kind of training against the machines and you have to be really careful when you’re dong that because machines will always out win, because of trigger respond much faster.

They are able to get in and out of positions much quicker and they’re only looking to make a couple micro cents on their trade or positions, where for you just might not be worth it. But if they are dong it thousands of times for the machine it’s worth it. For the company that owns that machine.

In addition to that, it can be more stressful since you have to be more alert and aware of your position each and every single day. This can really put a drain on you mentally. You’ll also miss out on overnight gap ops, it the stock starts climbing higher and higher every single day if you’re day trader. Because the stock that continues to run higher will gap up time and time again, until it proves otherwise.

The market hours just don’t work for everyone when you’re day trading. Sometimes you can’t be watching the market for being so alert just because you might have a regular job and something that you might have to go in and do every single day. You’ll have more commissions and expenses because you’re getting in and out of position much more frequently. So their expenses tend to add up much more rapidly if you’re a day trader.

And finally there’s the pattern day trade role that you have to be careful of. If you’re trading frequently and you have less than $25,000. These annoying regulations are in placed to help you out, but it could be annoying to the fact that might not be able to trade so often, since you have to get in and get out of the position within that single day.

Those are some of the advantages and disadvantages behind being a day trader. Again I think it’s based on the personality type along with the market conditions if you’re a day trader or if your swing trader. With a day trader, you’re in for the day and you are out. Maybe you want to close out your day and have the rest of your evening to just relax with your family and you don’t want to be stressed or think about your stocks at all.

Whereas for swing trading position you might think about it in terms of a longer-term position and if it’s a longer-term position, if the stock dips you may think okay I’m not as stressed because I’m in it for the long haul. Whatever mindset works for you, use that and you it to your advantage.

That’s kind of the advantages and disadvantages to being a day trader. Now which one is better? Which one makes more money? It is going to depend on the trader, the style and the system. But pretty much no one understand the advantages and disadvantages behind being in a day trader. So that way you can make a rational decision of what’s going to work for you and which style of trading you’re attracted to.

Thanks for watching this video, I’m Sasha Evdakov and if you enjoyed this video and you want to take your trading to that next level and you want learn faster than you’ve ever learned before, check out some of my courses on my website at tradersfly.com.

If you would like to get recaps on exactly the stocks I’m watching today in this market conditions, you just go ahead and sign up to my newsletter list right here and when you’re on it, you’ll get notified when I release new market recaps. Thanks again and remember to do what you love, contribute to others and most importantly, go out and live life abundantly. Good, see you next time.

Posted in:

Join other stock who get a trading edge each week with our newsletter

Get our free stock market tip, video reviews, and exclusive announcements.

No spam, no gimmicks, no junk - Unsubscribe anytime

I'M SASHA.

Thanks for joining me on my trading website where I share with you about trading stocks and options.

DOWNLOAD 100 Stock trading tips Book

Ready to check out some of our best-selling books that can help you become a better and more profitable trader? Check them out by clicking the link below… 

Video recaps on the recent market trends

Summary of recent market activity looking at swing chart opportunities, potential setups, and technicals.

Stock market picture charts annotated

Quickly review screen captured stock charts with annotations. Includes support, resistance, ABCD patterns, and possible breakouts.

want some helpful advice?

Pay-Per-Minute Coaching

I am scheduling helpful coaching sessions for people who are interested in real-world advice & guidance where you only pay per session. No long term commitment required.

This website and content is for information purposes only as Rise2Learn, TradersFly, and Sasha Evdakov are NOT registered as a securities broker-dealer nor an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Rise2Learn, TradersFly, and Sasha Evdakov cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Rise2Learn, TradersFly, and Sasha Evdakov in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Rise2Learn, TradersFly, and Sasha Evdakov accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

15 Hot Stocks Warren Buffet Loves

Trade and earn like Warren Buffet! Here are the stocks he invests in!

 

Get the list now and start earning your money!

Ready to Learn Profitable Strategies to Trading Stocks?

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...

 

Then sign up to get our free educational videos!

AWESOME!

In order for you to get your goodies and freebies you have to confirm your email address.

 

To confirm your email address, just go to your email inbox (or check your spam) and click the link that's inside the email that states you want to receive messages from us.

 

That's its!

Just one more thing... 

Ready to Get Our Educational Videos Each Week?

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...

 

Then sign up to get our free educational videos!

AWESOME!

In order for you to get your goodies and freebies you have to confirm your email address.

 

To confirm your email address, just go to your email inbox (or check your spam) and click the link that's inside the email that states you want to receive messages from us.

 

That's its!

Just one more thing... 

Portfolio Allocation - Percentage of Each Stock

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...

 

Then sign up to get our free educational videos!

Quickly Calculate Mid-Day Volume

This Excel sheet will allow you to quickly find out if your stock's volume is trading above or below the daily average during the middle of the day.

Top 15 Dividend Stocks for Retirement in 2020

Download our list of the best stocks for retirement. Simply enter your email address below to get the PDF!

Buying or Building a Trading Computer for 2020

Learn how to buy the right computer for your trading needs or choose the perfect parts if you are custom building a trading computer!

 

 

VIDEO COURSE

Top 25 Tech Gear for Traders

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...

 

Then sign up to get our free educational videos!

Awesome Phone Apps for Traders

Discover these awesome phone apps most traders use on trading! Earn money anytime, anywhere with these apps!

Top 7 Dividend Paying ETF's for 2020

Want to know the top 7 ETFs that pays the biggest dividends in 2020? Download this list now and start earning your dollars!

Do you want to download a list of over 125+ popular stocks that you should keep your eye on?

 

Enter your email below and we will email you the list of 125+ hot stocks!

OPTION TRADING GEEKS

Download my easy worksheet so that you can quickly see and know what the greeks will do to your position! 

 

Enter your email address below to download it!

OPTION STRATEGIES

Enter your email address below and get access to our video strategy session on 25+ option strategies and how to set them up!

25

How Long Will it Take to Reach $1,000,000 in The Stock Market?

Want to see for yourself how long it will take you to reach $1,000,000 based on your personal return?

 

Then download my Excel cheatsheet for FREE to see and play with the numbers!

OPTIONS GREEKS

Ready to get a deep understanding of the option Greeks?

 

Get access to my video training by entering your email address below!

VIDEO TRAINING SESSION

Ready to Get Our Educational Videos Each Week?

If you are serious to learn how to trade stocks more profitably, make more money, and trade with confidence...

 

Then sign up to get our free educational videos!

AWESOME!

In order for you to get your goodies and freebies you have to confirm your email address.

 

To confirm your email address, just go to your email inbox (or check your spam) and click the link that's inside the email that states you want to receive messages from us.

 

That's its!

Just one more thing...