| While day trading offers a lucrative opportunity, it still | | | | happening. |
| has some inherent disadvantages that are hard to | | | | Huge stressors |
| get over for many people. Here are some of them: | | | | Being a trader requires you to endure huge daily |
| Loss of money | | | | stressors, not only on the perspective of possible |
| The trade is very lucrative but is also very | | | | money losses, but also because the job will require |
| dangerous. Many traders walk out at the end of the | | | | you to give all your focus on what's happening in the |
| day with a depleted account which would not even | | | | markets that could affect your trades. You will also |
| pass as a paycheck. Depending on the decisions one | | | | have to constantly watch the fluctuations in the |
| makes during trading, a person could lose several | | | | prices and the market plus the indicators that will help |
| hundreds to thousands of dollars | | | | you decide where to put your next trade. |
| Improper money management | | | | Overnight Gaps |
| Because this trade revolves around money, and the | | | | Trading ends as the day closes so any market |
| money invested here could be lost at any time of | | | | activities overnight won't affect you in anyway- even |
| the day, a trader then faces the risk of spending the | | | | if sometimes it could be advantageous on your part. |
| money he could not afford to lose. He might find the | | | | A moving market is not a guarantee |
| need to borrow money from lenders or use his | | | | Sometimes, the market is so active but you'll end up |
| money intended for bills as funds for trading. | | | | with a loss or a breakeven. This could be attributed |
| Demanding Job | | | | to wrong decisions on what shares to buy or to sell |
| Day trading is not a laid-back type of job. You have | | | | or wrong timing in entering the trade. |
| to dedicate a certain time of your day to it with full | | | | Overtrading |
| focus depending on the income you want to achieve. | | | | Overtrading - is defined as either taking too many |
| Also, it is a highly stressful job which demands you | | | | opportunities or trading too large shares - is very |
| always make make-or-break decisions while being | | | | prevalent in day trading. Amateurs and emotional |
| time pressured. For people who find it hard to focus | | | | trades find it hard not to overtrade which puts them |
| for lengthy period, they may find this trade a bit | | | | at a lot more risks than necessary. |
| frustrating especially when very little is actually | | | | |