Being a day trader and an online trader have a lot of advantages. Check out these 8 biggest advantages you can reap by being a day trader.
1. Potential for bigger profits
The biggest appeal of day trading is the chance to earn higher and stellar profits. But this can only happen for a rare individual with all the necessary characteristics to succeed.
2. You can be your own boss
Since you will be working alone as a day trader, you’re free from the whims and demands of corporate, beer-bellied bosses.
You can have a flexible working schedule, take time off whenever you need or want, and work at your own pace. You will not feel like you’re running on a corporate treadmill like a corporate rat.
3. Excitement is never gone
Long time day traders will tell you that one of the best things about being one is the thrill and excitement you get as you pit yourself against the market and other professionals day in and day out.
The adrenaline rush from quick-fire trading is something that many traders feel ecstatic about, but keep in mind that this can be a big factor in your decisions.
It’s quite unimaginable for these people to spend their days poring over documents inside an office cubicle.
4. Expensive education not needed
If you try to seek a job in the finance industry, having the right degree from an ivy-league university is a prerequisite just to get an interview. You’re not even sure if you can really land the job, given the fact that there may be hundreds out there applying for the same job, only with better credentials.
Day trading, on the other hand, does not require an expensive education from any of those universities. You don’t need any kind of formal education or training. Though that may be an edge, you can always learn as you go on with your journey.
5. Being Day Trader = Self-employment
Since you’re a self-employed individual, you can write off certain expenses for tax purposes, which cannot be claimed by an employed individual.
6. Free Information and Resources
Obviously, similar to any other industry, there is a lot of study and knowledge to acquire. The good news is that there is a truckload of free resources on the internet and at your local library. These things can definitely help you in your trading career.
You can even buy a day trading software that can provide you with instant news, charts, and stock information.
7. No Overnight Risks
As a day trader, you can close your positions at or before the end of the trading day. For a day trader who opens and closes his position before the trading day ends, the risks of holding a stock overnight are erased.
A traditional trader’s profits can be gone overnight with traditional, long-term trading. Your profits are locked in and secured as long as you close your positions before the end of the trading day. This enables you to sleep with ease at night.
8. Profits in Bad Market Conditions
Being a day trader also means that you can take advantage of a weak market by utilizing short selling trading techniques to take advantage of falling stock prices.
The ability to make money off of the stock market in bear market conditions is a huge advantage for a wise day trader.