Why day trading is better than long-term (Opinion )

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.

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.

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.

Definitely day trading, trading is much more profitable, but it all depends on how much time you can devote to 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.

Michihito posted:
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.

My point from experience you make much profits from day trading than long time trading.

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.

I think it's all about what what you understand the most. In day trading it's more fun as everyday we can trade and profit or loss. But whatever the style one must master the art of trading to be profitable.

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.

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.

I think day trading is a great option for traders who do trading full day. It is all about the experience you have.

Harshalmark09 posted:
I think day trading is a great option for traders who do trading full day. It is all about the experience you have.

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.

Indeed, many traders who already have some experience try to use long-term trading because they understand its benefits.

If you trade the full day and give all your time in trading, Day trading will be the best option for you.

Perhaps the main difference between day trading and long-term trading is that you can make a profit almost every day. And you see your income visually every day.

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

Many people do not understand the advantages in long-term trading, because getting quick profits is much more pleasant and motivating.

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.

Realistically, in order to benefit from day trading, it is really scientific to be prepared enough and have plenty of time to devote to work.