That is a great question! A lot of it depends on personal preference and time. A day trader will have to spend a good amount of time each day in stocks. Day traders jump in and out of stocks in periods as small as 1-2 minutes. This means you will have to be sitting in front of your computer very actively focused on trading.
A day trader will also have to purchase software and equipment to assist them in trading.
They also do not care as much about the quality of the company, because they are just catching it on up and down swings.
A long-term investor can do research as they get the time. They are not as worried about a few cents change in the short run. They can invest using a simple stock broker and their regular home computer (or even smartphone). They invest in the long-term vision of the company.
I prefer to be a long-term investor, find good companies, then wait for a good buying opportunity, but there are day traders that make good money doing what they do.
Day trading is nothing but short term trading. Many people find it confusing to identify the difference between, stock, binary options and day trading. Well these are all the ways to make (or lose) money in the financial industry, but they are quite different from each other. Growing popularity of binary options signals to win trades is making all conventional trading form out of date. Day traders need to work on entry price, exit price, the number of shares etc. to gain profit.
- Francisco Burdick answered 7 months ago
- last edited 7 months ago