Day Trading. Should You Become A Trader?

Does the thought of making big money from home excite you? All you need is a computer, some free or low cost software, real time data, knowledge, and the time to be at your computer when the stock market is open. But before you jump into trading for a living, there are some things you need to know.

Benefits of Day Trading

Work from anywhere in the world where an internet connection is available
Minimal business expenses
Take time off whenever you want to
Be your own boss, - No one to answer to except yourself
Unlimited earning potential depends only upon your skills as a trader
Traders with limited capital find day trading attractive because they are risking less money per trade
No need to worry about marketing, customers, liability, complaints, and common business concerns
No need to worry about possible losses overnight when the financial markets are closed. (By definition, day trading means that you don't keep positions open overnight.)

Disadvantages of Day Trading

Day trading is much more intense compared to end of day trading
Long hours sitting at your computer
Requires more time than end of day trading
Self discipline is required to overcome psychological challenges unique to day trading
More market noise and wild price fluctuations can lead to a string of small losses even when you're clear about the market's direction

Should You Be A Day Trader?
If you're a successful end of day trader and have the time to watch the market all day, you might find day trading to be interesting and profitable. It can be addictive but it does require discipline, dedication, and the ability to concentrate for long hours.
Even if you're a good long term or swing trader, day trading presents unique challenges. It is a mistake to start day trading without adequate education. Learning how to trade can set you back thousands of dollars. However the cost of education is cheap compared to the cost of ignorance. Without a mentor, the market will eat you alive. Unprepared traders who think they know what they're doing, - but don't, can easily lose their entire trading account. A relatively small investment in education is a prudent decision.
When I started day trading in 1995, you had no choice but to risk real money. There were no real time trading simulators and day trading instruction was a joke compared to today.
The best way to learn day trading, is to learn from an experienced trader, and use simulators with real time data. Most trading simulators are free or low cost. It's a mistake to simply back test your ideas with old data and then expect the same results in the future. Don't take short cuts and don't be in a rush to make money. The faster you want to make money, the faster you'll lose it.
Find an experienced mentor and paper trade with a simulator until you're consistently making money. Trading with real money is different because your emotions can distort your your better judgement. Confusion and impulsive trading can dig into your trading profits. When you start risking real money, start small and reward yourself based on your performance.
Day trading is challenging, but the profit potential is unlimited. Do you have what it takes to compete with the best traders in the world?