Online Day Trading
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(pg. 2)
- Be aware that day trading does not offer the protection of an advisor who can tell you whether a particular investment is suitable to your financial goals. An advisor has the obligation to tell you whether an investment appropriate to you income, goals and age. This safeguard does not exist in day trading where you are on your own since day trading usually involves the use of a discount broker which offers no advice.
- Some investors can become addicted to day trading. Day trading can be a form of gambling and any individual who is prone to a gambling addiction could be in for a long, expensive ride.
- Only invest money that you can afford to lose. Day traders usually set the goal of buying and selling the same stock in a day. The loss could be incremental but over time, such incremental losses and trading commissions could add up before you know that you have lost a considerable amount of money. Consequently, only invest with money you are prepared to lose and set a limit of how much you are willing to lose.
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(pg. 2)