The stock market is one of the most common mediums that people use to earn money. While some people only dabble in the stock market in order to earn some money on the side, some people make their living out of buying and selling shares and stock. There are many different types of share trading in existence, and one of the most common ones is day trading. This kind of share trading should not at all be confused with the likes of intraday trading. Like all other forms of share dealing, when it comes to day share trading, people also wonder what its advantages are. Well, the following are some of the most significant advantages of taking part in day share trading:
The initial investment is very small
The first, and perhaps the most significant, advantage of being a day trader is the fact that the initial investment is very small. When a person enters the stock market for the first time, they fret a lot because they know that the stock market is a dangerous place and that they can lose their money quite easily. However, day traders are only required to invest a small amount of money, ensuring financial security.
Working hours are extremely flexible
If a person takes part in day share dealing, one of the most significant benefits which they will be able to experience is the flexibility of their working hours. Day traders do not need to be connected to the market at all times, meaning that they can work whenever they want, as long as they are not absent from the market at key times such as when fundamental foreign markets open.
You have liquid assets at the beginning and end of every day
Since day share dealing is begins at the break of the day and ends when the market closes, day traders are cash both at the beginning and at the end of every day. An extremely significant advantage of taking part in day share dealing is the fact that a person has liquid assets all the time and does not have to leave anything in the market overnight.
Day traders earn interest on their overnight cash balance
Last, but certainly not the least, another significant advantage of being a day trader is the fact that day traders earn interest on their overnight cash balance. Furthermore, the interest earned on overnight cash balance by day traders is also quite substantial.