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Penny Stock Basics

8 Advantages of Day Trading You Need To Know

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Written by Timothy Sykes
Updated 1/10/2023 8 min read

Advantages of Day Trading

If you ask most people what the biggest advantages of day trading are, what do you think they would say?

Most people would probably cite the schedule freedom and the money you can make, but the fact is, there are SO many more incredible things that day trading can offer. And if you want a visual explanation, check out how I made $2,500 yesterday WHILE RIDING THE TRAIN! And if you watch this video, you’ll see many more of my trading challenge students did even better:

Here are 8 more advantages of day trading that are worth knowing about.

1. Easy to get started. One of the biggest advantages of day trading? It’s incredibly easy to get started. If you’re trading penny stocks, you don’t need to be a licensed trader, nor do you need to receive a certificate or complete a course. As long as you have a laptop and an internet connection, you can become a trader literally minutes after you have the initial desire hits.

Unfortunately, this can be a double-edged sword. While it’s easy to get started as a trader, many do it with not enough information and that’s why 90% of traders lose. It’s a smart idea to get educated on trading before you start, start with this free penny stock guide, it’ll help you prepare nicely.

And while you won’t receive a diploma, you will be investing in your future so you MUST take it seriously. After all, it’s your money that you’re trading, and knowing more about the system will help ensure that you’re not throwing it away…it’s the lack of preparation that makes so many people lose so don’t make that classic mistake and study up! This new stock trading book is a must read too as part of your education.

2. Free resources. If you want to get started as a day trader, you’re living a very fortunate time. Even a few years ago, it was very difficult to figure out how to get started or how penny stocks even worked. Thanks in part to my efforts, there are now a lot more free resources online.

For starters, my free e-guide to penny stocks is an invaluable resource that every budding trader should read, bookmark, and re-read. Traders give tutorials online and on their blogs. It’s a great time to learn from the best.

Tim Sykes studying and trading
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3. My Millionaire Challenge. The Tim Sykes Millionaire Challenge is one of the most important things I have ever done in business. While I offer plenty of free information on my site, there’s also a more in-depth program that students can choose to follow.

In the challenge, I act as mentor and teacher to my students. As my student, I offer you an on-the-level education about how to really trade penny stocks for success. Yes, the basics are covered, but we go so much deeper than that. You’ll learn how to identify and predict patterns, and you’ll learn how to make sense of market trends. You’ll ultimately be guided to be able to make your own intelligent trading decisions so that you’ll be set up for a lifetime of trading success.

4. You’re in control of your destiny. Undoubtedly, one of the greatest advantages of day trading is that you are in control of creating your own success. 

Will you make millions in the market? That’s up to you to decide as all of my millionaire trading challenge students have worked their butts off studying, their success is NOT due to luck. If you really want to become a millionaire, it is possible. It’s not easy, though.

You’ll need to work harder than you ever have before. You’ll need to constantly challenge and humble yourself by learning, re-learning, and revising your methods. Don’t get me wrong, all of this can be extremely difficult. But it’s available to any and everyone. If you choose to become a successful trader and are willing to put in that level of work, you absolutely can make it happen.

5. Self starters are rewarded. While it may seem quite backwards, it’s sadly true: self starters are rarely rewarded in the traditional workplace. A higher up will take credit, or the best you can hope for is a positive annual review and maybe a small pay bump.

However, one of the great advantages of day trading is that you’ll be rewarded a lot, and quite quickly, for being a self starter.

If you are able to motivate yourself by setting goals and doing the work necessary to earn your trading chops, you will begin to make money and find success. Not only that but you’ll start creating predicable trading patterns to reliably make money.

6. There is a clear path toward success. You’ve probably already gathered this fact from the other advantages of day trading already listed. But to make it crystal clear: one of the best things about day trading is that there is a clear-cut path toward success. More than ever, in this day and age, success is yours for the taking. It’s less a matter of whether or not it’s possible, and more of a matter of whether or not you’re willing to take advantage.

One of the nice things about day trading is that it has already proven a successful path. You can look at the success stories from the Tim Sykes Million Challenge Team as well as my own story of success. As a new trader, you already have a lot of the work done for you; it’s a matter of finding your own way on this path.

7. You can make a lot of money fast. This is why you’re really here, isn’t it? The fact is, day trading is a lot more attractive to a lot of people because unlike long term investment, it allows you to make money fast.

Truthfully, day trading does come with a lot more risk than long term investment. But with risk comes great potential reward. If you really want to make some serious income in a short period of time, day trading is absolutely the path you want to take. An educated and knowledgeable day trader is an unstoppable money making force.

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8. It’s exciting. There’s a lot of focus put on making money as a day trader. And yes, truthfully, that’s probably why you got into the whole enterprise, right? But the lure of money isn’t what keeps people in the game for the long run. What really will do that is the thrill of the chase.

The rush that you get when you make a great trade is like few things in life. It’s an addictive (and non-lethal) high. Traders get intoxicated with it, and this is how they build a deep passion for the process.

Making money will only motivate you for so long, but if you stay committed to your goals and remain passionate about the process and continually challenge yourself like I teach people in my trading challenge to do, you’ll have a job for life…and it’ll be one you enjoy immensely…especially if you master it as the financial rewards are incredible.

Do you want to attain financial independence and become rich? If so, day trading can take you where you want to go. By approaching day trading in the right way (i.e., attaining education and looking before you leap), this can truly be the career of a lifetime…or if you approach it the wrong way, as most people do, it’ll just be another failed pursuit/hobby…so do NOT make the mistake that most do and take this topic too lightly…this is a SERIOUS challenge and you must do all that you can to prepare for battle!

Are you ready to become a day trader? Leave a comment ONLY if you promise to be a dedicated student, NO LAZY PEOPLE ALLOWED!

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”