8 good reasons to avoid day trading

Intraday trading is a bad idea for most people because it requires a strong personality; people who can face market fluctuations day after day. It is for those who pay enough attention to detail to run a business. But for people who have a hard time staying calm or are impatient to learn to trade, intraday trading can be a quick path to destruction.

The article guides 8 reasons to avoid trading and opt for investing.

Reason 1) Investing Is a Good Option to Discover

There are three types of people when it comes to the stock market; investor, trader and third who confuses traders to be investors.

Investor and trader are two different terms, investing is for long term purpose where investors invest the lump sum amount in stocks of a company and forget it for years whereas traders trade for the short term to earn profits.

You buy and sell securities to take advantage of movement in trading prices during the day. This may be a successful strategy, but it is not a good idea to spend all the money on trading. Even if one cannot be a trader, one can make money in the stock markets by investing.

Reason 2) Fundamentals Be Your Cup of Tea

If studying charts and sitting in front of tv from 9 to 3 is not possible then fundamental research is the best option for you. In fundamental you need to analyse the company you need to see how well the company is performing, its management and employees, its annual reports. The fundamentals are the overall study of the business the company belongs to.

Fundamental analysts analyse numbers, make predictions, test products, and look for stocks that perform well in the long term. Fundamental analysis is the opposite of day trading. Traders look for profit opportunities in short-term price movements. They often don't know which industry a company belongs to and don't care. If you like the fundamentals, then you may be too analytical to be a good trader.

Reason 3) If Time Is Money

Starting a day transaction is a lot like buying a small business. It requires time and money. If you don't have enough time, it is very difficult to learn technical patterns. If you don't have money, you won't be able to work hard cycles. And there will be difficult cycles. This is the only certainty in intraday trading.

Reason 4) If You Don’t Like Roller Coaster

Roller coaster is all about the excitement you don’t know what is next move, similarly in stock market price movement are not predictable, they change every second and this could get boring for few people.

Due to changes in the way people trade, most large stock, bond and derivatives exchanges have undergone mergers and have reduced the size of their trading floors. Today, most businesses are sitting in an office, in front of a computer screen. They have to focus on the small spot in front of them, which can be very boring. Sometimes, there are very few opportunities (if any) to trade using your system.

If you crave excitement and have difficulty concentrating, you may find that day trading is too boring for you. It can involve tremendous stress and there is almost no possibility of resolving it during the day.

Reason 5) You Are Impetuous

In situations involving busy transactions and fast decision-making, trading may seem like a perfect job for impulsive people. It's about instinct, acting on intuition and observing what happens. To be a good trader, you must trust your trading system rather than intuition. Sometimes you make a transaction when it doesn't seem right and put it on hold, even if you want to see it. If you want to act immediately and process the results later, trading is not a good idea.

Reason 6) If You Don’t Like Following Rules

Successful traders are subject to disciplinary action. They set up the business hours they claim to be, set up a system for planning trades and managing funds. They are taking the time to carefully test their trading strategy. They don't have a system and know that if they don't manage the risk, they might lose everything prematurely and become one of the traders. The basic idea of ​​trading is to close positions at the end of the day to limit risk.

If you are dissatisfied with the rules, you can rebel against the rules you set.

Reason 7) You Want to Get Rich

You are trading just because you have heard that it makes money fast, then you are wrong. Trading makes a profit by looking for short-term profit opportunities. They make money by making a lot of small profits.

Some exceptions make a lot of money in a week but those who win through trading require patience and persistence.

Reason 8) Trading on Just Expert View

It is possible to make a lot of money from day trading, but sometimes it seems to make more money selling day trading training systems. Some of these systems are heavily marketed online and even through tv channels. The pitch makes day trading an easy, safe and fun way to make money using your wits. These ads offer confusing details about the research and testing system, the high level of risk and the stress that trading can put on a person.

Trading is ideal for some people. But like everything, if it sounds too good to be true, it probably is. Don't let a strong sale cost you your hard-earned money.

Whenever we talk about a reason to avoid something it does not mean it has a bad effect, some reason may not suit your personality or attitude. Trading is not bad but risky than investing. If you are a beginner and planning to enter the stock market, start with investing, learn investing rules and strategies, make your position and study the market. As you are a beginner you will approach by brokerage firms and advisors who will tempt you to earn more by stock recommendation, tips to earn more, etc. But stay focused on your goal and follow these two rules which I followed to stay in the stock market:

Rule 1) stay in the market for the first 2 years

Rule 2) don’t get greedy