Saturday, December 22, 2007

What Are The Risks Of Day Trading?

If you are looking for a truly risky venture for your investment dollar then you may want to investigate the roller coaster ride that many know as day trading. While those that swear by it for making and breaking fortunes will swear there is a formula those that have been raked onto the rocky shores of this particular trading business will be the first to tell you that their luck ran out. Whether it's luck or science, day trading for many has proven to be risky business at best.

The Risks

In order to be successful in day trading you must be absolutely prepared to lose. You do not have time to think about failure, as it is likely at any moment. This is a lightening quick business and sometimes the market moves much more quickly than your fingers. This can result in unexpected losses as well as unexpected gains along the way. These bumps in the road are nothing compared to the highs and lows of actually being a day trader though. Forget the finances for a moment and consider the risks of heart attacks, heart palpitations, and strokes brought on the by excitement and heartburn (not that this can bring about a stroke but it sounded good) of the moment.

Day trading is very taxing. You must constantly watch your computer throughout the day for signs of life from your stock and act immediately. This is a high stress job that many simply cannot handle long term. Unfortunately day trading must become your day job because you have little time or energy to invest in anything else. There are those that get a huge charge from day trading but this is not a job for the average citizen it takes a huge toll on their health much too quickly-especially those that are sensitive to stress as it is.