Is day trading luck or skill? I'm not talking about one-time trades, but long-term trading.
Day trading is a skill. Many professionals earn high income through day trading. Most retail traders lack the knowledge and skills for day trading. Furthermore, one must adhere to the rules and regulations governing retail day trading, which most retail traders are unaware of and face issues when brokers enforce these rules on behalf of the U.S. Securities and Exchange Commission.
Day trading is a professional trading method. According to the U.S. Securities and Exchange Commission regulations, it requires a minimum investment of $25,000. Pattern day trading rules apply to retail day traders. Please visit the U.S. Securities and Exchange Commission website for reliable and accurate guidance on what the requirements for pattern day trading are and what is not required.
Day trading can bring substantial profits and there are many strategies available for use, these strategies are not scalp trading, which is a common strategy offered by most day trading training companies.
There are easier-to-learn day trading strategies, but they require more training and skills than retail traders realize. In addition, you must have a very high risk tolerance and be able to make quick, accurate decisions in seconds.
1. Research and find a qualified, certified professional educator, avoid retail chat rooms frequented by losing retail traders, treat trading as a hobby rather than a profession.
2. It may take several months or even years to hone your skills, so when learning day trading through papertrade, you should practice and hone day trading skills while engaging in swing trading or position trading (holding for weeks).
3. Have enough capital, you can buy 1000 stocks. Odd lots and 100 shares are usually not enough to earn sufficient profits to cover your trading costs. Of course, there are commission-free brokers, but this is just one of the many costs of day trading.
4. You need to develop a personality that can handle high pressure calmly and make quick decisions.
5. The risk tolerance must be very high. Take a risk tolerance test, understand your risk tolerance, and then cultivate a higher risk tolerance through skill development, as day trading carries higher risks for retail traders compared to other trading methods.
Many readers hope my answers can inspire them. However, this format is for reference only and cannot replace excellent courses on monthly income from trading stocks. Most day trading courses take at least 3-6 months to complete. If this is too long for you, then do not engage in day trading.
Professional traders not only need a degree in financial markets but also need to learn on the job. Junior professional traders may need to spend several years before being allowed to make more than sporadic trades, adjusting stock inventory developed from mutual funds or ETFs.
Plan to read more SEC articles on day trading, as you will be subject to SEC scrutiny, and brokers must comply with these rules. There is no holy grail, no magical stock indicators, no perfect candles, no effortless strategy for quick wealth. If you want to day trade, then you must think like a professional, act like a professional, do your homework, and develop skills, which require hundreds of hours of practice.
If this sounds like too much work, then save yourself from the erosion of your money, time, pain, anger, losses, and self-worth—trading volatile, momentum, or platform styles.
This is not the ultimate trading style is day trading. It is not. The ultimate style is the one that can bring you substantial income.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
成熟投资者：格局，概率，取舍。没有格局必然急功近利。不计概率会把运气当技术。不懂取舍，有所不为，最后必落入陷阱和圈套。
1155Followers
63Following
6711Visitors
Follow