Coffee Break

Living on Stocks: What is a Day Trader?

When most people start investing in stocks, securities, and other assets, they do it because they have a long-term goal to build their cash over time. These people don’t expect to see any immediate results from the things that they spend their money on, but they hope that eventually, the businesses that they get involved with will reward them with profits. However, if you start to spend a lot of time looking at the NYSE and other exchange markets, you might begin to get a taste for the excitement and thrill of buying and selling shares every day. When that happens, you might even consider giving up your day job so that you can make a living on the sales and purchases that you make each day.

Becoming a Day Trader

A day trader is someone in the investment landscape who executes large numbers of long and short trades in an attempt to capitalize on the changing prices of businesses. These people know how to spot red flags in the marketplace, like economic or political unrest, and use what they learn about their industry to make a consistent profit. Some people even earn so much through this method, that they get to the point where they can classify themselves as a pattern day trader.

PTD or pattern day trader can use money borrowed from a broker to make trades. This basically means that they can spend more on an investment than they actually have available to them at any given time. Accessing what’s called “leverage” PTDs are able to make huge profits off smaller investments that they make on a daily basis. The only downside is that they need to make sure that they’re keeping a consistent amount of capital in their account, or they could risk losing their status.

Who Benefits from Day Trading?

Like any investment strategy, becoming a DT investor is a process that comes with both its positives and its negatives to consider. On the plus side, this strategy can be a very lucrative undertaking, as it means that you can consistently make money through the right platforms on a daily basis. Some people even give up their traditional job so that they can watch the markets full-time. Additionally, there are plenty environments out there that offer training and support for people who want to dedicate their lives and livelihood to stocks and assets.

However, at the same time, there are some serious downsides to spending all of your money and time on the stock exchange. For instance, there’s a lot of risk involved in getting started with such a fast-paced and constantly changing environment. Many people in this landscape find that they’re frequently dealing with high levels of stress. That means that if you tend to get overwhelmed by your emotions or anxiety, then you might not survive well in this landscape. Not everyone will be able to thrive in the chaotic stock and securities market every day. Some people will need a more passive way to make money over the long-term.