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The Pitfalls Of Day Trading Stock OnlineAn intelligent trader once said, `The only difference between gambling at a cassino and day trading stock online is that you have to serve yourself drinks when sitting at your home computer.` Sure... some day traders have made some decent money through day trading stock online. But these are the exception, not the rule. Most day traders lose in the long run and that `long run` aint too long at times! You see, the trouble is... most day traders are seeking a `quick fix`. Their persona isn`t suited to mid term or long term trading. They quite likely have lost money in the past, either through gambling of some sort, or through losing patience with longer term trading strategies that turned sour. They most likely don`t have a large capital base, especially if they`ve been wiped out a few times in the past. And so the concept of... day trading stock online is incredibly appealing. Unfortunately, far too many traders who`ve either made the switch to day trading - or who are brand spanking new to it and thereby lack basic risk management skills, embark on a journey they`ll never forget... for the wrong reasons! For one thing, seduced by the apparent simplicity of it all, many traders approach the whole thing of day trading stock online without really knowing what they`re doing. Secondly, they have little or no concept of the underlying risks involved. Thirdly, as I`ve already alluded to, they often find themselves `horribly undercapitalized`. Fourthly, and most definitely a deal-killer... They play with borrowed funds! Not a good move... and a breach of fundamental trading basics to boot! So, is it even possible to make a living from day trading stock online? Yes it is. But the odds are stacked against you from day one. You absolutely positively HAVE TO HAVE A PLAN... or you`ll lose... simple as that. For starters... you have to know your entry and exit points BEFORE entering the market. It`s no good waiting until the market has moved so far against you that you`re too frightened to take the loss! When you participate in day trading stock online you have to leave your emotions at the door and follow your plan like your life depends on it (which some might argue `it does`). Suppose you buy 1,000 shares of abc-xyz at $1 per share - on a day trading basis... and you notice that the stock rises 30 cents a share before lunch. The left-side of your brain coolly advises you to `get out and pocket a massive $300 profit`. Hells bells... 30% in a morning is a good earn! However, you also have this other side of your brain which has no basis in logic. It is commonly referred to as the `emotional side` or right-side of your brain. It also has a deeply embedded relationship with every gambler`s nemisis... `Greed`. Accordingly, you decide in your professional lack of wisdom to... `Just hold on in there a little longer... it`s bound to go higher`. You go out and make some lunch, have a coffee... and smile...in the knowledge that you`re a day trading wizard who is on the brink of making a fortune. And it`s all so damn easy! 1.45pm... The stock has reached intraday highs of $1.37... `Maybe it`ll hit $1.50 by closing bell?` 2.52pm... News comes out that the company`s patent is invalid... the stock plunges to $0.60 in three minutes... For you, the dream has not only been shattered, but the sky has just fallen in... and your $1,000 investment has reversed a $337 profit into a $400 loss... and it`s still falling. You find yourself hurled into a maelstrom of helplessness, fear and chaos...but with no plan in place, you simply hang on in there. 3.30 pm... Trading in the stock is suspended. The last trade went through at $0.42. You are so stunned you can`t even shed a tear. Your day trading career lasted precisely 6 hours, 22 minutes and 8 seconds... `Welcome to the frenetic world of... day trading stock online`. For some of you, this article may very well bring back some rather painful memories. For others, let it be a warning... If day trading stock online is something that you are serious about and want to succeed in, then at least show you`ve got the intelligence, emotional control and discipline to survive the bad hits as well as bagging the big profits! There are over 10,000,000 web pages in Google dealing with courses and coaching on the subject of day trading stock online. So, before you risk another cent... do yourself (and your bank account) a favour... and start researching the mentoring options out there... until you find one that suits. Read Full Stock Pick article here!
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