The risks and requirements
Any activity that offers potential for gain, comes with an equal amount of risk. Day trading is no different.
- To find an angle or approach you may need to spend a few hours in research each and every day. Day trading requires a time commitment, and you may have to log up to 40 hours a week as a full-time trader.
- You will probably have to pay a commission on each trade. If you plan on executing multiple trades a day, the fees can add up.
- Day trading, if done incorrectly, can significantly impact your finances. Therefore, it’s a good idea to know what you are investing in.
- The potential for quick financial losses can make day trading extremely stressful. It is certainly not for the faint of heart.