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Day Trading. Most people have heard that term before, and it is usually followed with some form of negative comment or reaction.
So, what is day trading and is it as bad as people say it is?
After trading the markets for over 11 years, I thought I’d set the record straight and not only dispel some of the negative information out there, but also help folks to better understand exactly what day trading is and how they can get started if they so choose. My hope is that this article will get people to think more rationally about this very serious business rather than simply listening to erroneous commentary from TV or internet pundits, which leads to a great deal of misinformation.
Before we get started, please understand that any form of trading or investing can be risky and it’s possible to lose money. The comments made in this article are only my personal opinions and not meant to be construed as financial advice.
The term ‘Day Trading’ is very broad, and can also be referred to as ‘intra-day trading,’ ‘scalp trading,’ or ‘micro trading.’ Though slightly different in their approach, all of these terms are used to describe someone who enters and exits trades relatively quickly. This typically means ‘minutes’ or ‘hours’ rather than days, weeks or even years, which is what the ‘average’ investor is typically used to.