As exciting as it can be to be a day-trader, there are some problems you should be aware of.
- There is always a potential that you could lose money from a trade. Sometimes those losses could be significant depending on how a stock moves. These could be worse if the proper stop-loss orders are not placed.
- You would have to prepare the proper materials before you can actually start trading. These materials will be referenced later in this chapter.
- It can be stressful to those who are not fully prepared or ready to handle some of the trades involved. You have to be ready to execute trades quickly. Sometimes the window of opportunity for a trade might be extremely short.
- Many day-traders will trade during the entire regular trading period from 9:30am to 4pm Eastern Time. Some traders might even trade well beyond those hours.
- There is risk involved to make a profit. Although you can make various small trades here and there, it is much easier for you to make money if you are able to buy larger positions.
