The answer is yes. There are half a million people in India day trading for a living. Do you feel day trading is a way to make easy money? Or, you may think it does not need as much work as a regular job. Then, you are mistaken. Day trading for a living involves patience. You must have the ability to make logical judgements. You also need vast knowledge of the share market. A firm mental set up is another plus point.
If you have all these qualities, day trading would suit you. Do you want to derive your main source of income from day trading? Then, you need to understand the pros and cons of the job.
Read more: Day trading options
Here are some advantages of day trading for a living:
Let us now look at some challenges of day trading for a living:
There are also certain advantages of day trading over positional trading.
Positional trading means holding a stock for a particular period of time. This could be anything from one week to many years. Day traders, in contrast, close their positions by the end of the business day. The obvious benefits are as follows:
Read more: Forex day trading
It is crucial to select the object (security) and the market for day trading. There are a wide range of securities including:
Your success as a day trader depends on your understanding of fundamental aspects of the market and securities.
Read more: How to be a successful day trader
You need to be familiar with the following terms:
It is the degree to which a stock can be traded without affecting the price to a large extent. A day trader should look for assets with liquidity.
This refers to the potential shift in a security’s value over a small span of time. A day trader must be a good judge of an asset’s volatility.
Read more: Is intraday trading profitable?
India is a great country to live in for a day trader. The most important reason being the low costs of living. As a day trader, you are more likely not to face losses. The low living costs help you endure losses, if any.
Also, you can start off with less capital in India as compared to the USA or the UK.
How do you make a living from day trading?
Here are some tips to sustain yourself as a day trader:
Read more: What is a day trader?
Day trading can be a viable profession if you have the right temperament for it. Keep in mind the information and guidelines given above. You can start off by opening a trading account with Kotak Securities and learn your way up.
Read more: Intraday trading formula
Things to do when markets turn volatile
How to choose stocks for intraday trading
Secure your finances with an equity trading account
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