Unlike other types of stock trading and investing, day trading involves holding securities for only one day. Day trading is risky and it can be stressful, especially if you’re not prepared. Find out what personality traits you should have if you’re considering a career in day trading, useful websites for Canadian day traders, and a list of the most common mistakes day traders tend to make.

Day traders have expenses. They buy computer equipment, subscribe to research services, pay trading commissions, and hire accountants to prepare their taxes. It adds up, and the tax code recognizes that. That’s why day traders can deduct many of their costs from their income taxes. You’ll make your life as a day trader much easier if you keep track of your expenses as you incur them.

Several vendors have risen to meet the challenge of backtesting (using historical data to reconstruct trades that would have occurred in the past) and simulation so day traders can try out their strategies before they lay down real money. This list is by no means exhaustive, nor is it an endorsement of their services.

Day trading is a cousin to both investing and gambling, but it is not the same as either. Day trading involves quick reactions to the markets, not a long-term consideration of all the factors that can drive an investment. It works with odds in your favor, or at least that are even, rather than with odds that are against you.

Income seems like a straightforward concept, but little about taxation is straightforward. To the IRS, the money you make as a day trader falls into different categories, with different tax rates, different allowed deductions, and different forms to fill out.Don't worry, we're going to cover those here and make it as straightforward as possible.

Day trading income is comprised of capital gains and losses. A capital gain is the profit you make when you buy low and sell high — the aim of day trading. The opposite of a capital gain is a capital loss, which happens when you sell an asset for less than you paid for it. Investors can offset some of their capital gains with some of their capital losses to reduce their tax burden.

After you put your day trading strategy to work during the trading day, it’s easy to let the energy and emotion overtake you. You can get sloppy and stop keeping track of what’s happening. And that’s not good.Day trading is not a video game; it’s a job (to be honest, it would be a pretty terrible video game). Keeping careful records helps you identify not only how well you follow your strategy but also ways to refine it.

Currency trading can be really exciting for a day trader. Every day, trillions (yes, that’s trillions with a t) of dollars of currency are exchanged between governments, banks, travelers, businesses, and speculators. With every trade and every blip in exchange rates, you have new opportunities to make money. Currency is a bigger, more liquid market than the U.

Maybe you like the idea of trading but you've decided that working for yourself making large numbers of short-term trades isn't exactly what you want to do. What options are left? This article puts forward several ideas for alternative activities that may better match your interests than day trading. They include other career options, different ways to invest your money, and entertainment that gives you the excitement of trading without the same amount of risk.