Zero Overnight risk: One of the best advantages of day trading is ability to close your position at or before the end of the trading day. Since positions are closed prior to the end of the trading day, news and events that affect the next trading day’s opening prices do not effect your portfolio.

When you open and close your position before the trading day ends, the risks of holding a stock overnight are erased. A traditional trader’s profits can disappear overnight with traditional, long-term trading, but with day trading your profits are secure as long as you close your positions before the end of the trading day. No overnight crises or calamities in the financial markets can affect your income for that day.

Increased leverage: Unlike positions trading where you would have to have high levels of investment to put up in the market to gain a profit, in day trading it is quite the opposite. Day traders usually need to put up less money to get into day trading and succeed at it. Because of 121 low margin requirements for day trades you enjoy a greater leverage on your trading capital. This increased leverage can multiply your profits.

Profit in any market direction: Unlike long term investors who keep their stocks for long duration to capitalize only bull market, day traders can take advantage of both rising and falling market. Day traders can often take advantage of a struggling market by utilizing short-selling trading strategies to take advantage of falling stock prices. The ability to lock in profi ts even as markets fall throughout the trading day is extremely useful during bear market conditions.

High returns: If successful, the rewards of day trading can far exceed the risks. Of course if you begin day trading it will not always mean that you get high returns all the time. In the beginning you have to learn the ins and outs and fluctuations of the market to keep up. However, over time, you will hone a certain skill to make day trading profitable for you.

Unlike in ordinary stock market trading or position trading, day trading only requires you to trade intensely within market hours. Day trading requires discipline and time management, but it also affords an individual to make their own hours without a manager or boss standing over their back. And, in addition to the amount of money an individual can make form the comfort of their own home, day trading offers individuals many advantages they will not encounter in the more traditional forms of trading stocks and other financial instruments.