
The offers that appear in this table are from partnerships from which Investopedia receives compensation. Day trading is generally not advised for novice investors. After polling more than 60, households, the authors learned that such active trading generated an average annual return of On the other hand, increased investment capital may lure some investors into the exciting world of short-term speculative trading, seduced by tales of day trading rock stars richly profiting from technical price movements. Before deciding to invest in a company, ask yourself these questions:. These investments are typically diversified across a variety of industries and sectors.