Myth 3: Day Trading is Stressful
Day trading can be stressful...if you
are always chasing the highest possible gain, and if you are watching
charts all day. Greed is the enemy of all day traders. While others
are chasing a 5% gain on a unique breakout and developing high blood
pressure and heart disease, many successful day traders are calmly
gaining their 1% that could have been made on several trends during
Successful day trading is all about
having a reliable strategy.
Many long-term day traders who are
highly successful will day trade for about 15 to 30 minutes and be
done for the day. With an account value of $25,000 they trade on
margin with four times their account value of $100,000. They gain
their 1% of $1,000, which is actually a 4% gain from their $25,000,
and then they are done for the day.
$1,000 in 30 minutes, how does that
sound to you? If that is the only trade you make the entire week,
that would be $4,000 a month. How does $4,000 per month from a couple
hours of work sound to you?
Myth 4: Day Trading is Gambling
Day trading is only gambling if you
don't have a strategy, if you ignore your stop-losses, or if you are
always chasing an unlikely breakout or huge percentage gain. However,
when you aim for a feasible and realistic 1% gain on a stock that has
an average volatility over 5%, then day trading is simply all about
good strategy and risk management.
Remember that a 1% gain on your account
value per week translates into a 68% gain in a year, and using your
four times buying power can even result in a 340% increase per year.
Stocks vs Forex: Why Trade Forex?
Want to easily calculate your stop-loss
and profit goals?
Download this easy-to-use Stock Profit
Calculator. Just type in the stock price and it will automatically
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The cost is only $1, which is just to help cover the costs of the automated system to send you the Calculator.
Get the Stock Profit
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