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Pros and cons of day trading
While the above makes day trading sound
relatively straightforward, the truth of the matter is that it has a variety of pros
and cons that means it is not for everyone. Take a look at the following list to
determine if there isn’t another type of trading that is better suited to your goals.
Pros
Large profit margins: 
For those who do it right, day trading can be a very
profitable career path with profits that are greater and more reliable than just
about any other type of securities trading.
Work for yourself: 
Many of the most successful day traders are self-employed
which means they don’t have to answer to anyone, they can make their own
hours and set their own profit goals.
Always exciting: 
Dealing with the shortest market timeframes means that day
traders typically see more action than any other type of security trader. You will
have the opportunity to pit your wits against the market as well as your
competition each and every day. Those who are natural thrill seekers will also

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appreciate the adrenaline rush that comes from rapid-fire trading and pulling a
big win from the grip of defeat.
No degree required: 
As opposed to many other financial jobs, a perfectly
successful day trader can be completely self-taught. As long as you are willing to
put in the time and energy to learn the skills you need, you can be a success with
no degree required. Everything you need to learn can be found, at very little
expense, online.
Tax write off: 
As self-employed individuals, day traders can write off a great
deal of their expenses when it comes time to pay taxes. Sophisticated hardware,
expensive software, even home office space can all be partly written off by those
who work from home.
Cons
Commissions can noticeably affect profits: 
Due to the higher than average
number of trades they make in a single day, the commission cost of individual
trades can significantly affect your overall profits if you don’t do everything in
your power to minimize these costs.
The potential for loss is substantial: 
Day trading is without a doubt the most
difficult of all of the types of securities trading to make a reliable profit in. Most
day traders see nothing but losses for a least the first month of their nascent
career and if they are not careful these loses can prevent them from ever
reaching profit making status. While only trading what you can afford to lose is
something that every trader should keep in mind, many new day traders trade
with borrowed money in the form of margined trades or capital from loans
which can cause them to start out from a significantly indebted position.
High startup costs: 
Day traders are actively competing against hedge funds,
high-frequency traders and other professionals who often have trading capital
reserves in the millions. As such, in order to compete it is recommended that you
have a trading bankroll that is at least $10,000 at the bare minimum.
Additionally, you are going to need to invest upfront in charting software, a
trading platform, computer hardware and more. Added to this are the ongoing
costs of commissions, live price quotes and other brokerage fees, all of which
add up faster than they otherwise would do to the high volume of trades to be
made. Finally, many brokerages will not allow you to day trade unless you have
proven yourself to be a successful trader on a smaller scale which means there is
a time as well as a monetary commitment.

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Self-employed: 
While there are benefits to working for yourself, there are also
drawbacks. These include a lack of health insurance, a steady paycheck and
corporate infrastructure, just to name a few. This also means that you will need
to deal with the isolation that comes from working by yourself with no one
around to lend a hand or to make sure you spend your days working instead of
browsing social media, you will be completely responsible for your own success.
Finally, in order to truly day trade successfully, you need to commit fully from
the start which means giving up your steady paycheck to try something far less
guaranteed.