Day trading specifically refers to buying and selling securities within a single trading day, aiming to profit from intraday price fluctuations while holding no positions overnight.

Who is suited to day trading?

People may be drawn to day trading for various reasons - seeking a new career, financial independence, or the potential for higher earnings. However, trading is often described as "the hardest way to make an easy living” and there is the risk of significant trading losses.

Contrary to the clichéd images of traders working from tropical beaches, full-time day trading resembles starting a small business - one without a storefront, inventory, or employees but requiring capital, skill, dedication, and an edge developed over time.

With modern online brokers offering professional-grade tools at low costs, the barrier to entry is lower than ever. However, today’s markets also include high-speed participants, and traders must be mindful of their trading frequency to avoid being outmanoeuvred.

While bull markets attract newcomers, seasoned traders understand that what truly matters is market movement, not direction. Whether the market is up or down, volatility creates opportunities to capitalize on short-term peaks and troughs.

In Propex24’s opinion, two common profiles of aspiring full-time traders emerge:

1. The Market Enthusiast / ex-market professional – Someone who has spent years studying the markets, trading part-time or working in the markets, and gradually developing their skills before transitioning to full-time trading for themselves.
2. The Fortunate Investor – Someone who has made substantial profits quickly on a stock, currency, or commodity and assumes trading is easy money.

Propex24 believes the first group is better positioned for long-term success, while the second may face an uphill battle in achieving consistent results.

Ultimately is that those with the greatest resources, both financial, educational and time, who tend to have the best chance of succeeding.

Day trading realities

Most traders underestimate the emotional energy required to trade for a living. While they may immerse themselves in technical and fundamental analysis, they often overlook the psychological challenges - handling the emotional highs and lows of trading.

Many who ultimately succeed have attempted full-time trading multiple times before achieving consistency.

Stress and Personal Toll

Trading is mentally and emotionally demanding. The rapid decision-making required under pressure can be exhausting. The constant stress of financial gains and losses can also strain mental well-being and personal relationships.

Five risks and challenges of day trading

1. Lack of discipline – Emotional decision-making and poor risk management are the primary reasons traders fail. A disciplined approach, particularly in setting stop-losses, is crucial for longevity.
2. Trading with scared capital – It is generally recommended that trading should never be done with money needed for rent or basic living expenses. A trader should have dedicated trading capital and enough funds to cover living expenses for 6–12 months. [As mentioned earlier, day-trading strategies can fail and cause significant loss. Understand how any potential losses would affect your day-to-day financial situation before trading shares full-time for a living.]
3. Poor risk management – Failing to use stop-losses or mismanaging position sizes can lead to heavy losses. A trader who focuses on losses rather than the market’s movement loses perspective.
4. Overleveraging – Scaling up too quickly can lead to psychological stress. A trader comfortable with $10,000 trades may struggle when moving to $50,000 positions, leading to hesitation and deviation from strategy.
5. Loss of trading capital – Even experienced traders can face significant losses. Many have taken large drawdowns on their trading accounts multiple times. The ones who ultimately succeed learn from their mistakes - improving discipline, risk management and strategy.

Benefits

Short-term trading has advantages. Many day traders close all positions by the end of the trading day, eliminating overnight risk. This reduces exposure to unpredictable market-moving events while they sleep.

Insights from experienced traders

Day trading full-time can be a culture shock. It is a solitary endeavour - though communities exist, trading is ultimately an individual pursuit.

In Propex24’s opinion, successful traders:

1. Start small and build up gradually.
2. Develop a strategy and specialise in specific market patterns or stocks.
3. Establish a structured daily, weekly and monthly plan that includes learning, trading, and taking breaks.
4. Eliminate distractions and treat trading as a profession with a disciplined approach.
5. Work with a broker who provides access to expert insights and market-moving information in real time.

Conclusion

Day trading is an occupation where many are called, but few are chosen.

Although, as we said earlier, trading remains "the hardest way to make an easy living," success is possible for those who treat it like a business, maintain strict discipline, and continuously study the markets. Those who ultimately thrive do not trade 24/7; they understand that staying ahead requires constant learning and measured engagement.

Having a knowledgeable broker can provide valuable insights. But in the end, a trader’s success depends on their own skills and discipline. Trading is not a team sport and each individual is solely responsible for their results.

Before diving in, ask yourself: Are you ready, willing, and able to take on this challenge?