Day Trading vs. Continuous Trading

Should I use a 'Day Trading' or a 'Continuous Trading' strategy? It is a great question. If you do a small research on the web, you will find many professional investors advertising the benefits of 'Day Trading'. However, the truth is that 'Day Trading' and 'Continuous Trading' both make and lose money.

Some successful 'Continuous Trading' investors lose their money when attempting to day-trade and some day traders miss out on leaving their investment in market for longer periods of time.

In terms of trading, the difference is mainly one of personal preference.

Discover what works for you

Experiment in simulation mode with both 'Day Trading' and 'Continuous Trading'.

'Day Trading' is designed for risk adverse investors. Day Trader's cardinal rule is to sell everything before the closing bell to ensure peace of mind. This way, if something happens overnight and the market is affected, their money is safe. However said, be aware that this strategy often leaves massive amounts of money on the table as the investor loses money on the way out, never realizing profits that could have materialized the next day.

'Continuous Trading' is more lenient from a risk tolerance perspective. If market conditions are somewhat stable, it can yield good profits. Investors using this strategy do so to prevent exiting too early. They are betting that the market will trend in a specific direction after hours. They are willing to stay in-market overnight. The risk of leaving positions in-market after hours relates to stock price changing overnight due to macro-economic or company news.

To find out what is right for you, you should experiment with both trading styles. If you are unsure, use the simulator and learn what works best for you, risk free.