haha thanks, but what i was really asking is if there are any serious drawbacks that anyone with more experience can think of or good reasons not to try this strategy.
This type of trading style is often referred to as [color=darkblue:04ec632136][/color:04ec632136][b:04ec632136]Day trading[/b:04ec632136]If you are looking to [i:04ec632136]Day Trade[/i:04ec632136] watch for the fees that day trading will incur. Most online brokers charge about 7.00 per trade. This must be accounted for in daily gains/ losses..
Ah thanks, good to know it has a name. Does anyone have any opinions on this type of trading or better yet, experience with it?
There are definitely draw backs to the day trading strategy. Notably, high stress, high demand, high taxes, and high losses on certain trades will wear you down. If you're extremely dedicated to the strategy you can do well, but you will have to stay focused on every detail for the entire time the market is open. But undoubtedly people succeed using this method, as they do at others.
thats a tough road to hoe. you need to get a nailed down connection to the internet. and you better make sure its redudant (what would happen if you lost your connection during a trade?). You need several computers to monitor all the action of the market. you will be looking for small profits, so you are going to need a good deal of capital, probably between 50,000 and 100,000 to make decent enough money on trades. then you will have to totally limit your downside so you arent wiped out by a bad trade. plus all your trades will be subject to normal taxation. its doable but not easy. good luck.
and be prepared to pay taxes, taxes, taxes. (Unless you are doing trading in a tax-deferred account)