Day Trading - Is It Worth It And Can YOU Do It?
Post By: Admin / USA Frugal Club
There are plenty of ways to make money online, and most people seem to follow trends.
While every new trend seems like a cash cow project, it’s actually not. Most side hustles might seem better than your full-time job, but these are just temporary boosts people are attracted to. One of the newest ways to make money online fast is day trading. It’s one of the fastest-growing side gigs that makes people a lot of money, but is it worth it for the short-term? Let’s find out.
What Is Day Trading?
Day trading is a practice of dealing in stocks for a shorter period, typically a day. The idea is to make small profits and then compound these gains over time. With the rise of online stock brokers, day trading has become a viable but risky way for retail investors to turn a few days of quick win into a substantial bankroll.
Is It Easy To Make Money Day trading?
Many retail investors who hear about this quick way of making money online often ask, “is it easy to make money by day trading.” Brad Barber’s research at the University of California concluded that only 1% of day traders make a substantial amount of money. This study examined trades over 14 years.
How Do People In Day Trading Make Money
You might be dazzled by people making money through day trading, and this might appeal to you like a side gig. However, making a substantial bankroll from day trading requires commitment and determination. Those who make impressive income from day trading treat it as a full-time job.
However, there are other more profitable trading activities where you can invest your day and make even more money. Investing in long term projects and diversifying your portfolio for protection against losses is a better overall strategy. As your invested projects grow, your income will steadily rise as well. This will create a ripple effect where you can expand your investment portfolio and become rich by investing time and effort.
Day trading might seem like a shortcut to becoming rich, but it requires more effort than you think. Taking it as a short term project and exit after making your projected profits is not the best idea. Since day trading deals in tiny amounts of profit, it will take you a lot of time to reach your financial goals. Moreover, it’s an added effort in your daily routine that does not reap as much as you sow.