Day trading is another popular style that most new traders attempt, and would like to become proficient at.The basic premise of day trading is that all trades are opened and closed within the trading day. On wall street a day trader is usually defined as someone who takes around 100 trades per month, this equates to around 5 trades per day. there can be a lot of confusion as to the difference between a day trader and a scalper, and the answer is simply that a day trader is someone who may only get 1 entry on a given day, or even no entries, due to the fact that thier set ups are usually much more qualified than those of a scalper, i.e they require more factors in their favour before they enter.
The positive aspect of day trading is that trading can be carried out regularly and profits can be higher due to the higher volume of trades completed. It also a much safer way of trading due to the fact that the set ups are usually of a better quality.
The negative side to day trading is that there is still a large amount of psychological stress faced by the trader, for example several losses are still possible within a single day, which can create fear and aprehension when taking the next trade. The other problem faced by traders is that of a lack of patience, for example some traders get into particular mindsets and a classic mind set of a day trader can be that they must be making trades every day. This is a bad mind set to have, especially if it leads you into taking trades just for the sake of trading, rather than waiting for perfect opportunities to present themselves.
In summary, if you can avoid the common pitfalls that daytrading bring, you can enjoy the great benefits that regular short term trading brings, without the stress and risks associated with something like scalping. I would recommend that day trading be attempted once you have found a safe, robust methodology for entering and exiting your trades, and this has been tested on a small micro lot account for a sustained period of time.
