Day Trading Versus Investing: What You Need to Know


Day trading is one of the most exciting ways to grow your wealth over time and to enjoy yourself in the process. You execute your trades on the same day, so you don’t have to worry about holding your position overnight and risking a major price action disappointment the next day.

At Nova-X Report, I talk a lot about day trading and how it can work to your advantage. I’m excited to share some of those secrets with you today so you can better understand your options when it comes to trading and investing.

Nova-X Report Focuses on Day Trading and Investing


Day trading is a fascinating way to spend your time, especially if you enjoy the minutiae of graphs and charts. You can pick up small profits one at a time, and before you know it, you’ve doubled, tripled, or even quadrupled your trading account.

Day trading requires practice and skill. However, if you’re willing to devote time to day trading and the Nova-X Report, you can become an expert.

Day Trading Is a Much Shorter Game Than Investing

A traditional investment unfolds over years. You might buy several lots in a blue chip stock and hold onto them for two decades. Only then do you cash out, often for a specific purpose, such as funding your retirement or sending your kids to college.

To put it another way, imagine that you invest in a small local business. You put up $20,000 in exchange for 20 percent of the business. If the business thrives, you get 20 percent back from the business in perpetuity, but you might not make back your investment — let along profit — for several years.

Day trading is completely different. You might buy $37,000 of Stock XYZ at 10 a.m., then sell all $37,000 worth of shares at 11:10 a.m. Perhaps you make $0.20 or $0.50 or even $1.00 on the trade. That adds up over time.

Essentially, day trading is income investing. You’re not looking at the big picture. Instead, you spot opportunities to profit in a short timespan and take them.

You Need Both Day Trades and Investments in Your Portfolio

If you want your cash to work as hard as possible for you, put part of your money into long-term investments and direct the rest into day trading. That way, you’re producing income in the short term and profiting in the long term.

Using publications like Nova-X Report, you can vastly improve your chances of profiting from both. Every investment or trade comes with at least some risk. Even a giant like Alphabet or Intel can crumble if the economic conditions converge to make it happen.

Consequently, you need guidance to make sure you’re not among the thousands of investors and traders who lose more money than they make. That’s why I started Nova-X Report. I can help people improve their chances of taking home wins.

Day Trading Can Help Minimize Losses

Since day trading happens very quickly, you’re able to cut losses fast, assuming you’re trading stocks with lots of volume. If there are only a couple thousand people trading a particular stock, steer clear. If you need to sell quickly, you likely won’t be able to find a buyer.

It’s easier to find buyers through investing because you’re typically targeting larger, more established businesses. It doesn’t make sense to day trade a company that goes for $500 a share. You’re looking for those small-cap stocks that have lots of volatility and patterns you can identify.

Long-Term Investments Provide Income as well as Security

Most people separate investing and trading as the difference between security or profit and income. Long-term investments typically provide equity and capital gains that can help you grow your wealth, while day trading provides smaller income in the moment.

However, long-term investments also provide income in the form of dividends. Without diving too much into topics like taxes, it’s important to realize that you’re generating income from any investment or trade that earns money.

In other words, if the price action moves as you anticipated, you’re looking at income. It doesn’t matter if you hold on to your position for 10 minutes or 10 years.

You Need a Retirement Account

Day trading has nothing to do with your retirement account. You might have an investment account at an online brokerage from which you can execute intraday and swing trades, but you need a 401(k) or IRA account to prepare yourself for retirement.

This is where you put your long-term investments. You can diversify as much as you wish, manage your own account or pay someone else to do it, and call your brokerage firm to request trades, depending on the rules of your account. Do this in addition to your day trading activities.

Timing Is Key for Day Trading

Think of day trading as grasping a moment in time and using it to your advantage. You recognize a setup you’ve seen before, buy up lots of shares in a given stock, and sell it when the setup plays out.

Boom. There are your profits.

If you’re not timing your trades right, though, a few things can happen:

  1. Your profits decrease because you only caption a small portion of the setup
  2. Losses result from poorly conducted research
  3. You sell too soon and risk taking advantage of another bounce

Consequently, you have to be on top of your trades. Day trading requires intense focus.

Sometimes, Day Trading Requires You to Look Where Nobody Else Is

Day trading isn’t always about familiar companies. In fact, many traders have found success with penny stocks, which cost less than $5 per share. These are unstable, highly illiquid companies that might not be around six months from now.

But by trading shares in penny stock companies, you can see what others aren’t even looking for. These are often the best plays. As long as there’s sufficient volume to allow you to exit a trade — whether you’re long or short — consider going in.


Day trading isn’t for the faint of heart, but it’s an exciting game. I recommend lots of day trading plays through Nova-X Report. That’s why so many of my subscribers have reported extraordinary profits during single days.

And in your day trading, if you find an interest for tech stocks, consider signing up for my Radical Technology Profits publication. It’s ideal for learning about the latest technology secrets and capitalizing on them before they hit CNN.

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