So, You Want to Be a Day Trader? Read This.
Those who dream of day trading should read advice from Jake Bernstein, an internationally recognized futures analyst, trader and author of more than 41 books. It’s part of our new series of Trader Lessons from industry experts each Friday and available in our new weekly newsletter here.
Success as a day trader: it’s an American dream. It’s the crux of capitalism. It’s the pinnacle of peak performance in the financial world.
If you have an email account and if you’ve logged into any investment website, then you’re probably being bombarded daily by emails touting every investment scheme from forex to day trading.
It’s hard to know what to believe. Many claims are outrageous. Clearly, even the beginning investor will understand that if it’s too good to be true, then it’s probably not true.
However, some of the claims are plausible and real. After all, given the highly volatile market climate, it seems reasonable that one could take advantage of the numerous large intraday price swings in the capital markets.
Unfortunately, and all too frequently what appears to be obvious is obviously wrong.
This is not to say you can’t make money as a day trader. I must, however, exercise my due diligence and tell you that there are certain things you need to know before you jump into the swamp that has consumed so many new traders.
Only by knowing what you’re up against can you make an informed decision.
As the author of The Complete Day Trader (McGraw-Hill 1995) and The Complete Day Trader II (McGraw-Hill 1998) in addition to other books and articles about day trading, I understand the game.
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