Day trading is when one buys and sell stocks on a more frequent basis in the hope of making a quick profit. This can be done multiple times in a day and can make someone rich or broke quickly, most likely the latter. This is basically gambling since no one knows what’s going to happen to the price of a stock after its purchase.

There are many people who claim that they are making money out of day trading. Just like in gambling, people likes to talk about their winnings but keep quiet about their loses. Do not listen to these people and even if they show proof that they are making money from it, do not get tempted in doing it too. You are just going to base your trades on luck and this is not a good strategy to become financially successful or millionaire. There are of course a few who became rich doing day trading but they are exceptions and for each one who got lucky it, there are thousands who lost their money.

I mentioned from my previous note that timing the market is not a good strategy and day trading is exactly that on a more frequent basis. Statistically, your chance of becoming rich through day trading is extremely low. Just stick to a strategy that is repeatable and gives a better chance of success such as diversification and long term regular contribution to your investment accounts.