Chapter 1
So You Want to Be a Day Trader
IN THIS CHAPTER
Figuring out just what day traders do
Setting up a trading business
Knowing what being a successful trader takes
Dispelling a few day trading myths
Can you make a fortune at home, in your bunny slippers, by trading the markets?
Maybe.
But let me’ get a few things straight. Day trading is a crazy business. Traders work in front of their computer screens, reacting to blips, each of which represents real dollars. They make quick decisions because their ability to bring in profits depends on successfully executing a large number of trades that generate small profits. They close out their positions in the stocks, options, and futures contracts they own at the end of the day, which limits some of the risks. A lot can happen in a year when you’re a day trader, increasing the likelihood that your trade idea will work out, but in a day? You have to be patient and work fast. Some days offer nothing good to buy. Other days, every trade seems to lose money.
The individual human day trader is up against a tough opponent: high-frequency ...
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