Day trading is type of speculative trading in which traders buy and sell financial instruments usually stock within the same day.
Day trading also can be done into futures, options, commodity, and currency et cetera.
New comers or amateurs attract towards this type of trading because they want to make lot of money in short period of time.
Some of the day trading statics figures:
Statics shows day traders demographic made up of 74% male and 26% female traders. Trading is male dominated industry and this is male dominated area because of excitement, rage and greed.
Day trader’s average yearly income is around 49,200 dollars.
Day trader’s community average age comes around 38. So, well settled males with good enough money in hand are the major participants of day trading.
Some of day trading facts and traders mistakes:
70% of day traders lose money and most of them are new comers or amateurs. Lack of market in depth knowledge, trading without stop loss and taking too much risk are most common causes.
Most common mistake is rushing into trades without a good trading plan.
Only 12% of professional day traders make money in long term due to their strict trading discipline.
A Study found that 25% of traders that started out losing money begun to make profit after 3 to 5 months average professional training.
So from all of this, traders can take away that do not do day trading without in depth knowledge and professional training.