The Truth About Day Trading Stocks: A Cautionary Tale About Hard Challenges and What It Takes To Succeed

CHAPTER 1

Truths about Yourself to Know First

You’d be totally realistic to ask this: What is day trading, exactly? How does it differ from other types of stock trading? And last but most definitely not least: What’s my skill level in day trading? Where do I fit in?

Before you get into the profession full time, you should know all the answers to those questions.

You may find, however, that the answers don’t come easily. Confusion about just what day trading involves is common in the stock brokerage industry, and gauging just how adept you are at it can feel a bit nebulous, too.

Consider the Investopedia definition of day trading:

Day trading is defined as the buying and selling of a security within a single trading day.

Does that description define much?

As a beginner, you should start with an awareness of the distinct separation of day trading from investing. Be clear about which one you’re interested in, and just how well-honed your skills are. You may find that sorting out these questions requires some headwork, because day trading has come to be associated with a variety of workplace scenarios.

Prior to the Internet takeover, a decade or more ago, for the most part day traders worked at bank or investment firms and were known as equity investment specialists, or else fund management pros. But now, in the midst of both changing legislation and proliferating prospects online, day trading has emerged as a popular calling for thousands hooked up at home. Private equity trader ...