The Pros
Day Trading is great because all trades are completed when the market closes for the day.
Futures usually open at a price that is very different from where they end. Volatility means you can fall asleep at night in a winning position, and wake up at a loss. Day Trading provides rest from this risk. Literal rest. A good nights sleep.
There is no overnight risk with Day Trading, which is one of it’s biggest Pros.
There is a lot to learn when entering the trading world.
Day Trading is like an accelerated learning course in trading. You’ll make more trades in a day than position traders. This will help you learn quickly what is necessary for success. You’ll
The Cons
It takes great discipline to day trade. It can be vey difficult to stay the course and not over reach. Many who try out day trading find themselves overreaching and over trading.
Commissions can also be an issue when Day Trading. It is very possible to break even, but have a big commission bill at the end of the year. To make money day trading you have to make many winning trades.
A Word On Volatility
Short term trading can outweigh long term investing in certain situations. Volatility of the market will determine which approach is most favorable.
In a highly volatile market, prices are moving up and down frantically. This is what you want to look for. The high volatility allows you to buy and sell for profit within a days time. A stagnant market is a no go for day traders.
Day Trading takes a lot of preparation, education and discipline. It can me really difficult to make money Day Trading. It is crucial that you treat it seriously and dedicate proper time.
However, if you do your research and map out a game plan, Day Trading can be a very rewarding.