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The majority of people who day trade lose money. You can see this is the consensus by web searching on the terms "day trade" and "lose." Of the few people who make money day trading, most of them work for brokerages. The people who work for brokerages have the lowest commissions, and they can make money on low margin trades, while the small guy would lose money on the same trade from commission costs. If you have the low commission rate of the insider, you can make small amounts of money on a large number of computer automated trades. They are the only people who can successfully scalp.
Some people will say, "It’s true that the majority of people lose money on day trading, but if you work hard you can succeed." However, the majority of people that work hard also lose money. There is no proof that working hard at day trading will ever give you success anymore than working hard at video poker will make you a success. Some things are just very hard to do.
You can find people on the internet that says things like "It’s true that the majority of people lose money day trading, but if you use the methods at bogustrading . com/q2237 you will make money. However there is never real proof that the methods at "bogustrading" work. Do you see the "/q2237" at the end of link? That is called a referral tag. If you buy something at bogustrading, then "q2237" gets a kickback. The guy who is giving you advice to go to bogustrading is only referring you there because he hopes to get a kickback.
However, don’t believe anything I say, because a lot of the people here on Yahoo answers are trolls and liars. Instead, read the U.S. Government links below to learn of the problems with day trading.
A lot if you are motivated and sharp!
Don’t listen to all the goody twoshoes who tell you the only way to make money is to invest long term. Well firstly just to even get to that stage you need a lot of money doh. How do you make it? Daytrading. Now, the skills you learn daytrading are going to be very useful to you in long term investing too. How you might ask? Firstly if you have those street smart instincts you know when to get into a stock at the right minute, hour, day or week based on those skills and save yourself an extra 10% or 15% right there. Secondly, a daytrader has their exit strategy very well defined for each trade but a long term invester doesn’t understand how and when to jump off a sinking ship. Yeah so connect the dots–it’s good to learn how to daytrade even just so you know how the fast movers think.
You should also look at forex and commodities as well as daytrading. The problem with daytrading is if you do like 20 trades a day they will kill you with brokerage fees so you need a broker that is geared more towards daytraders rather than "investors". This would mean a low commission brokerage like sogo or king. Avoid the other glitzy ones that charge you $10 or more per trade for no good reason. $3 is a lot better and trust me it adds up especially if you trade low volume(which translates to low risk)
How much you can make as a day trader depends on your skill. The same as with other methods. The difference is that you can also lose a lot and lose it very fast.
Momentum and scalping are individual preferences, although I believe momentum trading is not as risky. Scalping requires more resources because you need to make bigger bets to make worthwhile profits. Which also makes it much more dangerous in volatile markets.
Most people who try day trading think it is a way to get rich quick. They don’t understand how hard it is, or how dangerous it is. That is why they lose. You should never attempt day trading unless you have successful experience as an investor, and then successful experience as a swing trader.