Short-Term Investments: Day Trading vs. the Long-Term Approach

When it comes to buying and selling stocks, traders tend to fall into one of two categories: Trading vs. investing. It a nutshell, it’s short-term trading vs. long-term trading. Both trade and investment require discipline, although day trading stocks involves paying extremely close attention to a stock price and a much greater time commitment. Think of day trading as the equivalent of a part-time job. With long-term trading, investors must engage in more research, but that research doesn’t have to take place during market hours. There’s no reason traders can’t day trade while making longer-term investments, but personality, lifestyle and goals generally means one type of stock trading is preferred.

Day Trading vs. the Long-Term Approach

Day trading stocks involves a totally different investing philosophy than long-term trading. When day trading, all buying and selling takes place within one trading day. Day traders make money on short-term asset price fluctuations. For those taking the long-term investment route, such investing ranges from weeks to years, even decades. One caveat: Day trading is riskier than long-term trading, but the potential gains are greater.

The Benefits of Not Holding on to Your Investments When Markets are Up

The whole concept of day trading revolves around making money within minutes. You have a target to hit, and once that occurs, you sell and leave before the stocks start to decline. Once you do well at day trading, you retain your earnings via compounding. A good day trader might make 10 percent a month. Look at it this way: If you start with $20K and make 10 percent a month, the following month you have $22K. The month after that, you have $24,200. Skilled day traders make that amount whether markets are up or down.

Alternative Options a Long-Term Investor Must Make

Long-term investors must rely on strategies such as dollar-cost averaging to see positive gains over time. This simple concept involves investing X number of dollars in a stock, mutual fund or ETF on a regular basis, usually once a month. The idea behind dollar cost averaging is that, over time, you do not buy at the highest or lowest share price. Dollar cost averaging allows investors to see positive gains in their portfolio over time, even when losses are experienced.

Why Short-Term Trading May Be a Preferred Approach to Online Trading for a Beginning Investor

For those getting their feet wet in the stock market, short-term trading requires learning all about market fundamentals and the use of technical tools and charts. This education, and the ability to make paper trades on a simulator before actually trading with their own funds, serves the beginning investor well no matter whether they decide to stay with day trading or take another approach.

The SureTrader Advantage

Whether you are an experienced trader or new to the game, SureTrader offers the best online trading experience available. Our state-of-the-art platform, technical analysis and trading tools are second to none. Start trading with a $500 account minimum. We offer 6:1 leverage on day trades, allowing even beginning users’ opportunities to leverage day trading opportunities and maximize profits. That’s the SureTrader advantage.

stock_comparison

Short-Term Investments: Day Trading vs. the Long-Term Approach

Short-Term Investments: Day Trading vs. the Long-Term Approach

When it comes to buying and selling stocks, traders tend to fall into one of two categories: Trading vs. investing. It a nutshell, it’s short-term trading vs. long-term trading. Both trade and investment require discipline, although day trading stocks involves paying extremely close attention to a stock price and a much greater time commitment. Think of day trading as the equivalent of a part-time job. With long-term trading, investors must engage in more research, but that research doesn’t have to take place during market hours. There’s no reason traders can’t day trade while making longer-term investments, but personality, lifestyle and goals generally means one type of stock trading is preferred.

Day Trading vs. the Long-Term Approach

Day trading stocks involves a totally different investing philosophy than long-term trading. When day trading, all buying and selling takes place within one trading day. Day traders make money on short-term asset price fluctuations. For those taking the long-term investment route, such investing ranges from weeks to years, even decades. One caveat: Day trading is riskier than long-term trading, but the potential gains are greater.

The Benefits of Not Holding on to Your Investments When Markets are Up

The whole concept of day trading revolves around making money within minutes. You have a target to hit, and once that occurs, you sell and leave before the stocks start to decline. Once you do well at day trading, you retain your earnings via compounding. A good day trader might make 10 percent a month. Look at it this way: If you start with $20K and make 10 percent a month, the following month you have $22K. The month after that, you have $24,200. Skilled day traders make that amount whether markets are up or down.

Alternative Options a Long-Term Investor Must Make

Long-term investors must rely on strategies such as dollar-cost averaging to see positive gains over time. This simple concept involves investing X number of dollars in a stock, mutual fund or ETF on a regular basis, usually once a month. The idea behind dollar cost averaging is that, over time, you do not buy at the highest or lowest share price. Dollar cost averaging allows investors to see positive gains in their portfolio over time, even when losses are experienced.

Why Short-Term Trading May Be a Preferred Approach to Online Trading for a Beginning Investor

For those getting their feet wet in the stock market, short-term trading requires learning all about market fundamentals and the use of technical tools and charts. This education, and the ability to make paper trades on a simulator before actually trading with their own funds, serves the beginning investor well no matter whether they decide to stay with day trading or take another approach.

The SureTrader Advantage

Whether you are an experienced trader or new to the game, SureTrader offers the best online trading experience available. Our state-of-the-art platform, technical analysis and trading tools are second to none. Start trading with a $500 account minimum. We offer 6:1 leverage on day trades, allowing even beginning users’ opportunities to leverage day trading opportunities and maximize profits. That’s the SureTrader advantage.