In addition to the excellent points Theresa made, specific answers:
OTOH, how is daytrading consistently profitable?
As with any form of work or investment or trading, nothing, in monetary terms alone, is consistently profitable. But if one counts the learning experience as a gain, consistent profitability is achieved as long as one learns.
How is daytrading different from gambling?
The odds don't automatically favor the house. But in a larger sense, daytrading is a gamble. So is every day of every life.
Are stock price directions really predictable?
Barring unforeseen unpredictable events (i.e., the USS Cole sabotage), usually, yes. And especially in a bear market where valuation metrics are being redefined, judging those directions daily has far more success potential than the longer term buy & hold strategies that rely almost solely on past metrics and valuations. |
