The Pros And Cons Of Day Trading
Day trading is popular and many are dreaming of striking it rich. The chances of striking it rich should be better than ever before, right? Free commissions, crypto trading, plenty of news, bell, and whistles make sure of that? You can even put up much less money than if you do swing trading or long-term investing. Is it any reality in this? Let's look at some of the pros and cons of day trading.
There are several pros of day trading: high turnover of capital, potentially fewer and smaller drawdowns than investing, you can utilize leverage, and you can exploit the law of large numbers to your advantage. Of course, there are cons of day trading too: you can't participate in the long-term upward drift in most assets, commissions and slippage can be ruinous, and you need to devote a lot of time (opportunity cost).
To continue reading, please read what are the pros and cons of day trading.
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