Pros and Cons of Trading Stocks

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Pros and Cons of trading stocks is something very important to consider since almost 99% of the people around the world own stocks in their retirement and pension portfolios. Stocks are one of the most popular (if not the most popular) financial vehicle in the world. If you are considering day trading stocks it is important to understand both the pros and cons of trading this vehicle since there are so many different ways of trading.

First we will start with the pros of trading stocks.
Day trading stocks is one of the best vehicles to start in. Stocks are relatively easy to understand and also very liquid in most cases. Since most people in the world own stocks the markets and exchanges around these financial vehicles are very deep. Once we get to point where we are trading a lot of money (think millions upon millions of dollars) we don’t have to worry about spreading risk and limiting orders due to financial constraints. Trade setups are relatively easy to find and execute depending on the stock and type of trade we are looking for.

The cons of trading stocks.
The first and most important thing to consider when trading stocks is the federal regulation that would require us to obtain $25,000 as a minimum to be able to day trade stocks. Compare this with the futures market where we would only need $1,000 to open an account. This goes without saying that one can still “swing trade” stocks with less money but in order to day trade we do need that amount of money.

Another disadvantage of trading stocks is the amount of work it requires in order to find the trades we need to take. Day trading for us at the Day Trading Academy has always been a lifestyle and we never want to consider this to be a job. When it comes to day trading stocks it takes an immense amount of homework in order to find the right stocks to trade. This include volume filters and also specific rules for setups. This can be extremely time consuming which is not what most traders want to do.

If you want to learn more about the pros and cons of trading stocks and learn more about the advantages and disadvantages watch the video and let us know if you have any questions.

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Also learn how we day trading and traveling around the world for the last six years at http://wanderingtrader.com. Our WanderingTrader sister site.

Comments

Declan Tiso says:

Hi Marcello, nice videos 🙂 I'm in Brisbane and was wondering what's a good contact to find out more info on the Surfer's Paradise "military training"?

Pablo Ribeiro says:

I'm a little bit curious about how do you deal with bank accounts and money transfer, do you use a specific county for reference?

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