Is It Possible To Earn Money In Day Trading?

In case you want to trade the shares on intra-day basis, there are lots of different methods that you can do all this, mainly if you stay in UK. For instance you can make use of financial spread betting company or else trade through CFD provider, or else you can just buy & sell the shares through traditional share broker. Thus how simple it is to make some money in day trading shares?

Well I have been trader for some years & in my knowledge trying to make some money from the share trading over course of single-trading day are the hardest methods to earn money. Major problem that you face is volatility, or else lack of that in lots of cases. At times even an most liquid of the shares have got days where they hardly ever move & this is the real problem for the traders as they require decent price moves to make any of the worthwhile profits.

Other problem is however, you choose to trade markets, and you have spread to overcome whatever share you select to trade. This is problem in itself, as you can often need share to move some points so you may break, never mind make profit.

There are as well some other factors, which make an intraday trading very difficult & one of biggest is wild swing that happen in wider market. Though shares may often move according to other shares in same sector, you can as well find that larger shares are very heavily influenced by direction of overall market. Example most of the FTSE 100 shares can obviously move in same direction as FTSE 100 index.

This makes it very difficult to predict a future cost moves as you need to have an eye on wider market, and news announcements, which influence this entire index. Because of these extended market moves, you may often find out that any of the company specific analysis are based on the charting patterns, example, is rendered useless if wider market moves against you.

Thus overall when it is likely to make the profits from the share trading at short time frame, then I have found it is easier to trade an individual shares over number of days & weeks instead. All this method you can eliminate lots of short term price movements, which are very hard to legislate for, also you must find out that it is very easy to predict the future price moves.