OK, we got the idea from a cigarette box warning label, and there has never really been any scientific proof that day trading causes strokes or heart disease. However, day trading is a risk investment strategy that could potentially be hazardous to your health due to the amount of stress involved. If you are looking for a truly risky venture for your investment dollar then you may want to first look into the emotional roller coaster ride that day trading comes with before accepting the challenge. While those that swear by it for making and breaking fortunes, others who have been raked onto the rocky shores of this particular trading business will be the first to tell you that it?s a dangerous road to go down if you don?t know what you?re doing. Whether it?s luck or science, day trading for many has proven to be risky business at best.
The Risks Involved In Day Trading
In order to be successful in day trading you must be absolutely prepared to lose. You do not have time to think about failure, as it is inevitable that you will lose money at any given moment. This is a lightening quick business and most of the time, the markets move much quicker than you?re fingers. This can result in unexpected losses as well as unexpected gains along the way. However, these bumps in the road are nothing compared to the highs and lows of actually being a day trader. Forget the financial gains or losses for a moment and consider the risks of heart attacks, heart palpitations, and strokes brought on by the amount of stress caused by day trading.
Day trading is very taxing. You must constantly watch your computer throughout the day for any one of the hundreds of signs that indicate it may be time to make a move. This is a high stress job that many simply cannot handle long term. Unfortunately day trading must become your day job because you have little time or energy to invest in anything else. There are those that get a huge rush from day trading, but this is not a job for the average citizen as it takes a huge toll on their health much too quickly???especially those that are sensitive to stress as it is.
Perhaps the biggest risk is that you can become addicted to the highs and lows. This is a huge problem because once you become addicted it is much more difficult to temper your purchases and counter your losses. When you aren?t looking at it with a clear mind and unhampered perspective, it doesn?t seem nearly as dangerous as it can be. Lives are ruined financially because of irresponsible day trading and addictions to day trading that are much like addictions to gambling.
You should also understand that day trading isn?t investing in the strictest sense of the word. Day traders don?t invest in stocks so much as they trade stocks and while some may claim this is a simple case of semantics, there are a few major differences. Investors hold onto stocks for a little while with the expectation of gains over time while traders buy and sell quickly hoping for immediate gratification. Investors research and study a specific stock before jumping in while traders study patterns and formulas and hope they made the right decision.
Investing in and of itself is risky; day trading adds another layer of risk to the equation. If you want to get involved with day trading then make sure you have other investments as well that hedge against the high level of risk involved. Or better yet, trade your own brokerage account but look for online membership programs that may help point you in the right direction. There are many services out there that actually give you stock picks and tips based on the research conducted by their in house team. A good example of this is service within our website called Elite Inside Trader Pro. The bottom line is make sure you know what you?re getting yourself into before you start picking your own investments. Oh, and never ?put all of your eggs in one basket?.
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Source: http://hottrends.wikiaspace.com/2012/03/09/warning-day-trading-causes-strokes-and-heart-disease/
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