I like the idea of day trading, but i do not like gambling, would you consider day trading fancy gambling or do you think by using different strategies such as technical analysis or news trading, you have a high chance of profiting...?
2007-02-13 11:58:25 · 9 answers · asked by ? 2 in Business & Finance ➔ Investing
Day Trading, in the final count, is really a combination of skill & luck. In that sense, it's akin to gambling.
Sure, using TA methods like Japanese Candlesticks, and RSI and MACD will help you get a SLIGHTLY better picture, but TA does not allow for the emotional aspect of it - say, when a stock in a particular sector blows up due to mismanagement or fraud, all the other stocks in that sector go down because of "guilt by association".
And, when folks panic for whatever reason, they dump stocks regardless of whether they are good or bad.
If I were to resume Day Trading ( I gave that up some time ago ), I would depend most heavily on the MOMENTUM indicator, and not hold for more than a few hours.
From experience, it is VERY difficult to make money consistently in Day Trading, and I hope you will consider a longer term perspective.
Choose stocks with good fundamentals, good management, a stable market space, then buy some. The probability of being able to exit with a profit increases the longer you hold it.
2007-02-13 12:07:46 · answer #1 · answered by InspectorBudget 7 · 3⤊ 0⤋
Day trading is gambling, but it doesn't hurt to "play" with a small portion of your portfolio (<10%) to try and capitalize on short-term movements in stocks. However, in the long-run most investors are better off just buying some index funds and spending their time doing other things. Remember the dot.com boom? Money was falling from the sky, but soon vanished into thin air. Until you can find a way to accurately forsee the future, day trading in stocks will be a gamble. Just "play" with what you can afford to lose. Good luck!
2007-02-13 23:10:42 · answer #2 · answered by Contrarian 3 · 0⤊ 0⤋
Day Trading is an art it will never be science . If it was a science it would of been easy too master. You will only be able too make money consistently through experience (3 years or more) and more importantly love for what you do , in this case day trading. You will experience the following : money loss , fear , greed , depression , discrimination , marginalization , stress , lack of conviction , mistrust of yourself and ultimately getting to know yourself and changing . That is why most people fail at day trading , who in their right mind would want to experience the above . Bottom line : put in the hours , take what get dished out on the chin , learn and ultimately profit.
2013-11-30 05:51:06 · answer #3 · answered by ? 1 · 0⤊ 0⤋
Every technical analysis report I have read has about 10 pages of past history showing charts, fancy named lines & points, and sums up with a line something like "The charts seems to indicate that if this buying stays strong, this upward monumentum will continue, BUT, if people stop buying and begin selling, the price will go down". My reaction: DUH........
Take the advice of the most successful investor in the world, Warren Buffet -- Invest in good (money making) businesses. Time in the market, not market timing is the way to success. His favorite holding period is forever. Think about how much interest and dividends he collects every year.
2007-02-13 22:55:49 · answer #4 · answered by gosh137 6 · 0⤊ 0⤋
In between, more to the science side.
It isn't completely a science as there are too many subjective factors.
It isn't gambling, as you try to have the highest probabilities on your side.
One BIG problem with day trading is that you need high amounts to start, about 25K, best to start with low amounts and when you make some money, increase gradually.
Get to know the market and know its main trend, never, never, never, invest against the trend, because if you invest with the trend you can almost always catch the next "wave".
Trade index ETFs first (SPY, QQQQ, DIA)
2007-02-13 20:21:03 · answer #5 · answered by Carlos G 3 · 1⤊ 0⤋
No one can predict the future even the very best in the industry.
So it is a gamble. To really gain you need to leave money in your selections and let them ride. Just look at the gains over the past 4 years if you had just left your money in your choices instead of trying to out guess the market!!
2007-02-14 01:12:38 · answer #6 · answered by Brick 5 · 0⤊ 0⤋
Day trading is a real science, not a fancy gambling. If our moves were perfect its a real flow of money, if our analysis were wrong, then its worse than gamble
2007-02-13 22:27:08 · answer #7 · answered by chandar88 1 · 0⤊ 1⤋
If it wasa science, it could be automated and everyone would try to get in on it and drive any potential profit away.
Lie with arbitrage, if there is a pricing discrepancy, everyne will try to take advanate of it until no such discrepancy exists.
2007-02-13 20:39:50 · answer #8 · answered by Peaches 4 · 0⤊ 0⤋