what do you think of an amatuer day trading.
I tried it the other day and made over $700.00, and then I was told I had to bring my account to $25,000.00 in order to participate in day trading.
It seems to me to be the way to go, if you have nothing better to do but make money.
Best Answer
4085 points
EthanR answered 10 months ago …
Congratulations! Now that you have made money, you are no longer an amatuer! Try swing trading (2-3 days) instead of day trading, see if your brokerage will allow that. What I would do is wait until there is a down day in the market and many stocks are pulling back. Find a stock that has good relative strength or was just overbought, and try to buy it near the lows of the day. Then hold it for 2-3 days, try to sell it near the high of day two or three.
If your brokerage still doesn't allow this, find out how long you must hold a stock, or get a second job and save up the $25,000, then go back and day trade!
Answers
2183 points
ChaosNantuko answered 10 months ago …
The vast majority of day traders lose money, most of them because they don't have the knowledge necessary to succeed. I would papertrade the system and methods you intend on using for at least a month before using real money. Remember to papertrade in the exact same way you would trade using real money, and to keep track of all the results. Don't forget to factor in commissions as well. While I believe daytrading is a valid way to make money, and can be very profitable, you have to keep in mind the reality that most fail, mostly due to inadequate risk management. With that in mind, as an amateur, you should approach day trading with caution.
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457 points
SallyG answered 10 months ago …
It's very risky, which is I would guess is probably why they ask for such a high minimum: if you can afford to stake that much, it seems to indicates that you have the potential to absorb the losses that will surely come. Congratulations on the one successful trade (how much did you invest, if I might ask?), but realize that the downside potential is just as great. Good luck!
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