Winning at Day Trading

A day-trader is connected directly to the stock markets and not to an intermediary. This possibility saves considerable time and time is synonymous with money. The notion of real-time takes on its full dimension when day trading. Peek at the Facebook page of Rockwell Trading for more details.

Setting precedent

The United States was the first to discover day-trading, but it was also the first to experience its problems. It is customary for “trading houses” to grant their clients facilities far superior to those permitted by the American authorities. In Tokyo, a broker may grant a credit allowing the investor to buy more than they possess.

This process was extended with a “marginal account”. In the United States, a broker can lend up to twice the amount held by a client. Trading houses are less demanding in terms of collateral and do not hesitate to lend 10 to 20 times more.

This system inexorably leads to the indebtedness of some American households. In fact, this was one of the propagators of the economic and stock market crisis of 1929.

Is day trading worth it?

But does one gain a fortune by day trading? Once again, the US is the only country with reliable statistics on this topic. If you believe that day-trading is the best way to make a fortune, review everything again and see if that’s truly the case. In most instances, the broker is the one who wins big and not the client.

Indeed, according to a study by Washington State, 77% of day-traders (purchase and sale shares over one session) had an average positive balance of $36,000. At the same time, only 11.5% of day-traders would be able to live sustainably through their business. These figures, far from the dreams of investors, is compared to the annual cost of managing a day-trading portfolio.

According to the SEC, the overall cost of the day-trading is around $200,000. It goes without saying that the individual qualities of each day-trader clearly influence its performance. Faced with such an observation, it is no longer surprising that there is a massive amount of enthusiasm for the online brokerage industry.