Why day trading is better than long-term (Opinion )
forex_trader_1786937
Member Since Aug 23, 2020
142 posts
Sep 25, 2020 at 02:41
Day trading and investing for the long term are both viable forms of securities trading, and many traders opt to do both. Day trading involves making trades that last for seconds or minutes, taking advantage of short-term fluctuations in an asset's price. With day trading, all positions are opened and closed within the same day.
Long-term investing, on the other hand, consists of making trades that stay open for months, and often years. These are buy-and-hold trades, rather than quick, buy-and-sell-trades. The decision-making process for a day trade can be quite different from a long-term investment with different skills and, in some cases, personality traits required for each. There is also a middle ground between investing and day trading called swing trading, which is when trades last for a few days to a few months.
Day trading and long-term investing differ in terms of capital requirements, time commitments, skills and personality requirements, and potential returns. Both day trading and holding some long-term investments are important parts of a diversified investment strategy, although buying and holding investments offer a more passive form of income and wealth generation than the constant vigilance and work of day trading, I chose day trading because 80% of my time from Monday to Friday are spent full time trading.
BENIFITS YOU GET FROM BEING A DAY TRADER;
Day traders can make 0.5 percent to 3 percent (on the high end) per day on their capital. That may not sound like much, but it could equate to 10 percent to 60 percent per month.
Higher return percentages may be possible on smaller accounts, but as the account size grows, returns are more likely to shift into the 10 percent per month region or less.
With day trading, gains compound quickly. For example, if you start with $30,000 and make 2 percent a day, the next month you're starting out with $42,000. If you make 2 percent again daily for next month, now you have $54,000 to . Compounding occurs daily since profits are locked in daily. That means you make gains on prior gains (in addition to any additional deposited capital), so your account might balloon rather quickly.
You can do far more than above with very strict money management and lot of time dedication to market analyses daily.
If you are not a full time trader, this will be very very difficult for you, I chose day trading because not only I'm a full time trader, I love closing all my positions daily and bag my profits each day, I hate leaving trades overnight, except I have locked the profits in a trending market and i expect the market to jump further to my direction of anticipation (Gold normally does this) , then I have no reason to leave my trades overnight.
Long-term investing, on the other hand, consists of making trades that stay open for months, and often years. These are buy-and-hold trades, rather than quick, buy-and-sell-trades. The decision-making process for a day trade can be quite different from a long-term investment with different skills and, in some cases, personality traits required for each. There is also a middle ground between investing and day trading called swing trading, which is when trades last for a few days to a few months.
Day trading and long-term investing differ in terms of capital requirements, time commitments, skills and personality requirements, and potential returns. Both day trading and holding some long-term investments are important parts of a diversified investment strategy, although buying and holding investments offer a more passive form of income and wealth generation than the constant vigilance and work of day trading, I chose day trading because 80% of my time from Monday to Friday are spent full time trading.
BENIFITS YOU GET FROM BEING A DAY TRADER;
Day traders can make 0.5 percent to 3 percent (on the high end) per day on their capital. That may not sound like much, but it could equate to 10 percent to 60 percent per month.
Higher return percentages may be possible on smaller accounts, but as the account size grows, returns are more likely to shift into the 10 percent per month region or less.
With day trading, gains compound quickly. For example, if you start with $30,000 and make 2 percent a day, the next month you're starting out with $42,000. If you make 2 percent again daily for next month, now you have $54,000 to . Compounding occurs daily since profits are locked in daily. That means you make gains on prior gains (in addition to any additional deposited capital), so your account might balloon rather quickly.
You can do far more than above with very strict money management and lot of time dedication to market analyses daily.
If you are not a full time trader, this will be very very difficult for you, I chose day trading because not only I'm a full time trader, I love closing all my positions daily and bag my profits each day, I hate leaving trades overnight, except I have locked the profits in a trending market and i expect the market to jump further to my direction of anticipation (Gold normally does this) , then I have no reason to leave my trades overnight.
Member Since Aug 17, 2020
123 posts
Sep 25, 2020 at 04:16
I see your point. Day trading can absolutely bring more profit on the long run and it is enticing. However like you said it requires different skills and personalities and I guess it also depends on the goals of the trader, whether one wants to make a living or just take care of their savings, etc. In my experience swing trading is getting more and more popular, there are many people who can't / don't want to trade full time but want to do more than long term investing.
forex_trader_1786937
Member Since Aug 23, 2020
142 posts
Sep 25, 2020 at 04:48
DoraWalletInvest posted:
I see your point. Day trading can absolutely bring more profit on the long run and it is enticing. However like you said it requires different skills and personalities and I guess it also depends on the goals of the trader, whether one wants to make a living or just take care of their savings, etc. In my experience swing trading is getting more and more popular, there are many people who can't / don't want to trade full time but want to do more than long term investing.
Yes, but if you are a full time trader like me, day trading should be the best option.
Sep 25, 2020 at 08:47
There is no better or worse. It's about what you understand the most and what you are comfortable with. I like day trading it doesn't mean everyone has to like it. If anyone understand long term trading very well he should go with that.
forex_trader_1786937
Member Since Aug 23, 2020
142 posts
Sep 25, 2020 at 08:53
Michihito posted:My point from experience you make much profits from day trading than long time trading.
There is no better or worse. It's about what you understand the most and what you are comfortable with. I like day trading it doesn't mean everyone has to like it. If anyone understand long term trading very well he should go with that.
Sep 25, 2020 at 09:24
Day trading requires a significant time investment, while long-term investing takes much less time. ... Because of these discrepancies, there is a big difference in the potential returns of day traders versus investors. Day traders can make more than the long-term investors as they are dedicated to their trading and they keep a close watch on their trades and long-term investors, they invest and rest so the risk is low but the returns are also low as well.
forex_trader_1786937
Member Since Aug 23, 2020
142 posts
Sep 28, 2020 at 06:51
Well if I'm long time trader, I don't think all the profits I made from buying and selling gold through day trading from last year till date on live accounts would have been up to quarter of it as a long timer. Day Trading Rules for me.
Member Since Aug 17, 2020
123 posts
Sep 30, 2020 at 07:59
TraderAngolan posted:DoraWalletInvest posted:
I see your point. Day trading can absolutely bring more profit on the long run and it is enticing. However like you said it requires different skills and personalities and I guess it also depends on the goals of the trader, whether one wants to make a living or just take care of their savings, etc. In my experience swing trading is getting more and more popular, there are many people who can't / don't want to trade full time but want to do more than long term investing.
Yes, but if you are a full time trader like me, day trading should be the best option.
Yes, that is true.
Member Since Nov 07, 2020
15 posts
Nov 24, 2020 at 07:55
I think day trading is a great option for traders who do trading full day. It is all about the experience you have.
Member Since Jul 23, 2020
759 posts
Nov 24, 2020 at 14:02
Harshalmark09 posted:I think day trading is best especially for new trader. However, most of the new trader often show interest in scalping which is riskier in my opinion.
I think day trading is a great option for traders who do trading full day. It is all about the experience you have.
Member Since Jul 19, 2020
318 posts
Nov 25, 2020 at 10:55
If you trade the full day and give all your time in trading, Day trading will be the best option for you.
forex_trader_795593
Member Since Oct 09, 2019
32 posts
Dec 17, 2020 at 11:21
Day trading is as it is saying, a short term looking for quick profit in trading while long term has a longevity to it. Personally, I think I am mixed in this, I do enjoy day trading but at the same time, I also tend to keep some derivatives in for long term
Member Since Feb 04, 2021
35 posts
Feb 09, 2021 at 11:55
No doubt, if you are experienced enough, day trading helps you make profits almost all the days but it is useful for full time traders only because it requires all your time to watch the market and accordingly place the trade.
Member Since Jan 13, 2021
29 posts
Feb 09, 2021 at 20:26
I prefer day trading.
Member Since Jan 22, 2021
125 posts
Feb 16, 2021 at 16:17
Day trading is always a better option for those who want to earn high profits in very less time, provided you have good knowledge. As per me, this helps me to lock profits in both rising and falling trends.
