What Are The Risk Associated With Day Trading?

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Day trading is very risky just like how risk is associated with investing and especially the day trading, as traders can loss their assets in the blink of an eye, especially if the traders doesn't have the basic knowledge about day trading. As a trader, you must know when to enter and exit trading and utilizing technical analysis can help to by keep one updated about the market price movement.

For the middle ranking investors, day trading could be an intimidating theory due to the number of risks associated with it.

Below are some of the risks associated with day trading

Like I said earlier that day trading can be so risky and as a day traders, you can loss or suffer a critical financial losses and may not be able to acquire any profits.

Day trading consumed most of the day traders time and can also be so stressful. Day trading requires great concentration especially while monitoring many ticker qoutes and price swinging.

Day trading can leads to serious debt as many day traders rely majorly on borrowing fund to trade as day trading strategy utilize the leverage of borrowed money to acquire profits. Various day traders wind up in debt as they are not only loosing their own money.

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2 comments
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The risk should be whatever you are willing to lose, no more!

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