But if one thing's certain about stocks, commodity futures, options and similar investments, it's that they're uncertain. They trade in the hope that their investments will soar in value in the short time they hold them, and net them quick profits. Often they use computerized systems or advisory services that claim to be able to predict the markets. No doubt about it, this is a risky business. Despite the picture of investing success painted by some day trading companies' ads, far more day traders lose money than make it.
Some traders lose big, forfeiting their student loan money, second mortgages or retirement funds.
In addition, people who trade on margin or sell short risk losing much more than their investment. Every time investors make a trade, they pay a commission. That's true whether they buy or sell and whether they make money or lose their shirt. Read Between the Lines Learning the language of day trading can help you separate fact from fantasy when reading an ad or listening to a commercial. The potential to make a six or seven figure annual income from trading is at the ends of our fingertips.