Why day trading doesn’t work?

Why day trading doesn’t work? Daytrading means using changes in the value of the financial instrument till the opening and closing positions in a single session, based on the daily chart. It may be an interesting alternative to achieve fast, but small earnings. You can buy based on the classic buy signal, but do not hold the position for more than one day. On the graph below all the averages are pointing downward in the order providing an advanced downward trend. There is no reason for a longer holding of the shares in the portfolio, as the company is somehow “doomed to decline.” This is not, however, a lack of investment opportunities in one session. The moment marked with an arrow, the killing rates of the small triangle has been utilized in a great way for players to reach several percent of short-term profits, thereby starting the adjustment of prices in a downward trend.
day trading doesn't work
Just before this event MACD histogram reached the zero line – bulls started to take control of the market. Despite this strong simple correction from few weeks ago prevented other players taking long positions. The shares began to fall. According to the potential strength of listed securities, estimated on the basis of growth in the past few weeks, you should consider whether the involvement of money for at least a few hours will bring the desired results or will jeopardize the level of your capital. As you can see now daytrading is not a perfect way for investing. In the end 90% of day traders end up losing money, and the world’s best make only 10% ROI which are not large profits. Why day trading doesn’t work? The primary reason of this is that short-term stock price changes aren’t predictable. To make a profit you need to overcomeĀ slippage due to the bid-ask spread and expenses – margin interest and commisions. A lot of day traders are trying to minimize the slippage issues and costs by making fewer trades along with increasing the size of each trade. This tactic exposes day traders to much higher risk if the stock price rise or fall against them. So why day trading doesn’t work? It’s partially true it doesn’t work, however the profits are minimal compared to the risk involved.

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