As Warren Buffett said, 'whether it's socks or stocks, I like mine 50% off.'
I do not day trade but I have been swing trading for the last five years (holding longer than 1 day and usually a few weeks). Like any profession, there is a lot to know and there's a million ways to approach the market - penny stocks, shorting, news-driven, earnings, options, selling options, etc. To save yourself a lot of time, money, and frustration, this is what I'd say to anyone wanting to do it, whether day trading, swing trading or position trading (investing for months on end):
1) Study a lot of charts - the good news is that the market is fractal so a 15minute time frame might work the same as a Daily or Monthly chart will.
2) The two most used indicators seem to be RSI 14 and MACD w/ Histogram so if that's what everyone else is generally using, maybe your entries should be based on that too.
3) Study the next higher time frame - I swing so I start with considering the Monthly and Weekly charts.
Free Bonus Tip - Bullish ('buy low and sell high') will usually begin with the price crossing above the 20 simple moving average and the RSI 14 will be above 40.
P.S. Here is an example of a recent swing trade. I entered in the $3 range with $4 Call options expiring in September. I sold those Call options slowly in the $6.50 - $8 range and made 400% - 600% gains. No, it isn't always like that but if you bail quickly then you'll survive and maybe even thrive.
Topic: Do any of you day trade for your living? (Read 15097 times)