Generally, day trading should be avoided. If you decide to participate in day trading, what should you keep in mind?
What will be an ideal response?
Answer: Be prepared to suffer severe financial losses.
Don't confuse day trading with investing–they aren't the same. Day traders aren't interested in value, but in how the stock might perform in the next few hours or day.
Don't believe claims of easy profits. Investors have a tendency to talk more about when they make money, but not about when they lose it. In fact, day trading has been called "a trading method for transferring wealth from unsophisticated investors to sophisticated investors."
Watch out for "hot tips" and "expert advice" from newsletters and websites catering to day traders. There's no question that someone makes money from day trading; unfortunately, in the vast majority of cases, it isn't the investor
You might also like to view...
For managers, communication cannot be over-emphasized because _______ requires communication.
Fill in the blank(s) with the appropriate word(s).
In linear programming, statements such as "the blend must consist of at least 10% of ingredient A, at least 30% of ingredient B, and no more than 50% of ingredient C" can be made into valid constraints even though the percentages do not add up t
percent. Indicate whether the statement is true or false