The majority of people who day trade lose money. In fact, according to the North American Securities Administrators Association, a mere 11.5 percent might trade profitably; an astounding 70 percent lose their hard earned cash. Industry experts claim that 95 percent will fail within the first two years.
The above percentages are due to the often tumultuous nature of the stock market. Traditionally, investing usually involves studying businesses, carefully choosing stocks, and planning to hold onto the stock or investment for the long term. Conversely, day trading involves hours spent tethered to trading computer systems with eyes glued to trading monitors and trading laptop computers tracking the ever changing movements of stocks. In an average day, a day trader will place many, many orders and hold each stock or investment no longer than a few hours.
If, however, you are still interested in embarking on this stressful and expensive career path, there are a few must haves that you need to consider.
The people who appear to be making (at least a little) money day trading are those who have powerful day trading systems, such as trading laptop computers or desktop computers, that can keep apace with the demands of the job. Having reliable and fast access to real time market data, which is fluctuating constantly, is an imperative first step for day trading. Consider this, too; you will be glued to trading laptop computers every minute the stock market is open watching ticker quotes and market fluctuations. It is to your absolute benefit to employ multiple technologies such as trading laptop computers.
It is also important to consider that trading laptop computers might be eschewed for a faster desktop computer with higher speed processing, loads of RAM, and giant (and super reliable) storage.
In addition to having top notch technology, equipment, and trading laptop computers, do not trust claims from companies promising easy and quick secrets to day trading success. If you are considering day trading, do yourself a favor: do not quit your day job.