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Day Trading For Dummies, 4th Edition
book

Day Trading For Dummies, 4th Edition

by Ann C. Logue
April 2019
Beginner
368 pages
10h 17m
English
For Dummies
Content preview from Day Trading For Dummies, 4th Edition

Chapter 5

Increasing Risk and Potential Return with Short Selling and Leverage

IN THIS CHAPTER

Bullet Making money with other people’s money

Bullet Garnering tall profits from short sales

Bullet Using leverage in every market you can imagine

Bullet Borrowing for business and personal needs

Bullet Considering the consequences of leverage

In a certain sense, day trading isn’t risky at all. Day traders close out their positions overnight to minimize the possibility of something going wrong while the trader isn’t paying attention. Each trade is based on finding a small price change in the market over a short period of time, so nothing is likely to change dramatically. But here’s the thing: Trading this way leads to small returns. Trading full time is hard to justify if you aren’t making a lot of money when you do it, no matter how low your risk is.

And some days, there aren’t many good trades to make. You may be looking for securities to go up, but they don’t. Zero trades lead to zero risk — and zero return. For this ...

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Publisher Resources

ISBN: 9781119554080Purchase book