Are you considering day trading as a career? Or perhaps, you are trying to weigh out the pros and cons of day trading to determine if it is a viable option. This article will further explore the advantages of day trading to determine if it is the right fit for your lifestyle and needs.
Let’s first begin by defining what “day trading” is.
Day trading in the stock market is when an individual or entity buys a stock or other security (such as options contracts, futures derivatives, or forex currencies) and sells that same security before the closing bell for the day. The stock market is available for trading from 9:30 am (EST) to 4:00 pm (EST). An individual who day trades stocks would purchase the security during these market hours and close their position, resulting in a profit or a loss, by 4:00 PM EST the same day.
So, what are the benefits of being a day trader? Let’s discuss a few below to determine if this is the right path for you.
The Advantages of Day Trading
# 1 – Create Your Own Schedule
One of the most positive advantages of day trading is that you can set your own schedule. Day trading offers the flexibility to trade on your own time. Perhaps, you work as a stay-at-home parent and you are busy early mornings and cannot commit to trading. The stock market provides the flexibility to trade between 9:30 am and 4 pm (EST). Offering the opportunity to trade whenever it’s convenient such as in the afternoon or lunchtime. Even if you work a full-time job, it is still possible to trade over your lunch break if that is the most convenient time. Day trading provides the trader the ultimate control over their time and schedule.
# 2 – Obtain Quick Profits
When investing long-term in stocks or other securities it can take months or years to generate a profit from your purchase. However, if done correctly, the opportunity exists with day trading to make consistent daily profits to reach your financial goals. Daily profits are a significant advantage of day trading that entices many traders because they are looking for consistent account growth day after day and month after month. Many traders enjoy seeing those quick wins and not waiting months or years to obtain a return on their investment through either swing trading or long-term holding.
# 3 – No Overnight Risk
When stock positions are held overnight, they are subject to overnight volatility. We have recently witnessed stock prices from good companies, like Netflix and Facebook, aggressively drop overnight due to company earnings reports or other adverse market news. No one likes to wake up and see their favorite stock drop 15% overnight. One of the advantages of day trading is that positions are not held overnight when stock prices can be affected based on negative news and events. At the end of the trading day, day traders take their wins or losses for the day and live to trade the next day.
# 4 – Trade As Much or Little As You Want
It can be a misnomer that day trading requires one to stare at a computer screen the entire day. The most successful day traders trade for a few hours and log off the computer to enjoy the rest of their day. Day trading can allow traders to create the balance they desire to earn a living while at the same time enjoying their life outside of trading. Day trading also works for those who want to trade all day long.
# 5 – No Boss Required
Another advantage to day trading is that you are your own boss. Day trading works well for individuals who can thrive with no involvement from management. Many traders can attest to having a sense of freedom and independence from being their own boss. This realization ultimately leads many to the idea of trading because they can treat it as a business where they are the ones in control and are not dependent on others.
# 6 – No Glass Ceiling
There are no limits to the potential profits earned from day trading, regardless of whether you are looking to make $100 a day or $1000 a day. With a tested and proven day trading strategy there is the potential to earn whatever daily amount that one desires. Please note day trading is NOT a get-rich quick scheme. However, with the proper tools, strategy, and mindset a trader can be profitable and reach their desired earning potential.
# 7 – Not Location Dependent
Another benefit to day trading is that it is not location-dependent for those who love to travel. It is a skill that anyone can perform anywhere in the world with a good wi-fi signal. It only requires a computer with Internet access and a trading platform. You can trade in the comfort of your car over your lunch break, within your home, or at your next travel destination.
# 8 – Recession Proof Income
Considering how volatile the job market is today, relying solely on your job as a primary source of income can be stressful. Companies relocating or downsizing is a common theme in our economy today. As a result, many individuals turn to day trading to supplement income due to a job loss, employment insecurity, or as a way to build wealth. Profits from the stock market are recession-proof because the stock market is not going anywhere anytime soon. The stock market has existed for over 200 years, even longer than most companies today. With the right skills and tools, a trader can make money when the market is booming or in a recession.
The above list of advantages summarizes the benefits of learning to day trade. Whether or not you are looking for a skill that you can do around your current job or while backpacking through your favorite country, there are many advantages of day trading that you can benefit from once you take the first step and embark on this journey.
Are you ready to start your day trading career?
Maurice Kenny is a successful day trading coach that can help you begin your journey as a day trader. He has worked with hundreds of students and helped them become profitable day traders.
Check out another article that can help you if you’re wondering how to day trade with a full time job HERE.
Feel free to check out our 1-hr webinar and other FREE educational resources to help guide you as you begin your new journey to financial freedom.
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