Perhaps you've heard of people quitting their regular jobs to go into day trading. This, despite the fact that an estimate of 70% of traders and securities investors lost some or all of their money in the process, or for futures traders, about 94% of them lost some or all of their money and quit trading altogether. Or that it has other added costs which you need to pay like commissions in both buying and selling stocks.

The thing that lures people into this type of business is the same temptation that gambling or betting does to others - the possibility of earning fast, easy money. But while others see this as another form of gambling, traders and investors would argue otherwise.

For one, it is not based solely on chance. Before buying securities, stocks or futures, you need to have information on the financial market. In other words, you need to study and do your homework. There are tons of books that you can read, websites that can provide you with more information.

Some firms educate would-be traders by offering lessons and training on the topic. For as much as $5,000, you may be trained for a few weeks to know the ins and outs of the trade. If people are willing to spend this much to learn, then the business must be lucrative.

A businessman wouldn't invest in something which has slim chances of profit, would he? That explains why this business is popular. We knew of some people who earned thousands of dollars in just one day, or a friend or a friend's friend who became millionaires by trading.

Of course, there's the privilege of being one's boss. This, alone, is reason enough for some people to venture into this type of business. You can work in your most casual clothes, and come and leave as you like. You may not even report to work everyday if you want to.

Day trading is not all luck or chance. You need to have adequate trading intelligence and knowledge before you can trade successfully. With luck you can only gain for a certain degree or period of time, but not in the long run. As they say, you need to trade intelligently. Together with the chance of earning is an equal risk of losing money. Trade brokers and analysts can only suggest. Ultimately you have to listen to yourself, whether it is your brain or your gut which tells you. 

Tags: day trading, stock market, sensex