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TEN GOOD REASONS TO AVOID DAY TRADING

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TEN GOOD REASONS TO AVOID DAY TRADING


Day trading isn’t right for everyone. In fact, it’s a bad idea for most people. It requires a strong personality, someone who can face the gyrations of the markets day in and day out. And it also requires someone with enough attention to detail to run a business. It’s a great career option for the right person in the right circumstances. But for people who have trouble keeping cool, who don’t have the patience to learn how to trade, and for anyone who has a gambling problem, day trading can be a quick road to ruin.
I list ten signs that maybe day trading isn’t right for you right now. Take them seriously. Most day traders lose money, in part because a lot of people who aren’t cut out for day trading try it anyway. Don’t fret if it turns out that you aren’t day trader material. Most people aren’t.
You Want to Learn Investing by Day Trading
Many people want to manage their own investments, and it’s certainly possible. It requires taking the time to lear…

SIGNING UP FOR ASSET CLASSES

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SIGNING UP FOR ASSET CLASSES



It’s one thing to day trade, but what are you going to trade? Stocks, pork bellies, or baseball cards? You have myriad choices, but you have to choose so that you can learn the market, know what changes to expect, and make your trades accordingly. And, to avoid of the devilment of the wash-sale rule, which can limit the tax deductibility of short-term losses, you’ll probably want to make your universe of trading assets as broad as possible.
Still, you can’t trade everything. There are only so many hours in a day and only so many ideas you can hold in your head at any one time. Furthermore, some trading strategies lend themselves better to certain types of assets than others. By learning more about all the various investment assets available to a day trader, you can make better decisions about what you want to trade and how you want to trade it.
What Makes a Good Day Trading Asset
In academic terms, the universe of investable assets includes just about anything…