Don't day trade, you're going to lose your money

[Don Pedro Dinero]

I am opening this thread as opposed to all the publicity you have received about day trading. It is a very falsely marketed activity, on a par with MLM businesses, with the difference that the latter tend to advertise in smaller niches.

So let's see why if you're thinking of day trading you'd better not do it because you're likely to lose your money, everything and more. The longer you trade the more likely you are to lose, and if you use leverage you will lose it quickly.

The following article is from a reliable source and refers in general to traders, not specifically day traders:

Why 90% of Stock Market Traders are in Loss?

But I would like to highlight one paragraph that reinforces the idea that frequent trading is counterproductive:

Overtrading: Buying and selling too much might raise transaction costs and lower total returns. Impatience or the desire for rapid profits frequently lead to overtrading, which negatively impacts portfolio performance.

Here we have two ideas:

1. Transaction costs. Every time you make a trade you pay a fee, which works against your profitability. There are brokers that claim to charge no or very small fees, but then they tend to have a wider spread.

2. The psychological aspect, which is more difficult to master the higher the frequency of trades.

Let's see more reasons:

3. Time and Experience. Although advertisements and trading houses sell you the idea that with a little training you will be able to start earning money comfortably from home, the truth is that being a successful trader requires a lot of time, study and practice.

4. Mathematical impossibility if you start with a small capital. The idea that you are going to start with $100 and be able to reinvest it until you make it a large capital or that you are going to be able to get a monthly income from it clashes with the mathematics. The smaller the capital and the bigger your aspirations, the more likely you are to lose it all and the faster. Just ask someone who knows real finance, not someone trying to sell you a course or shitposting on bitcointalk.

5. There is no guarantee of success, even with training and practice time. Those who sell you trading courses earn more by selling courses than by trading themselves.

6. Survival bias distorts perception. Success stories are often seen because those who fail simply disappear and do not tell about their experience.

In another thread I commented that Warren Buffet, who is known as the world's greatest living trader, has earned an average annual return of just over 20%, over a sample of decades. He says that if he worked with small capital he could make a return of 50% per year. That's something like 0.136% daily return, but also ask yourself: why is no one as famous as Buffett a day trader? The answer is very simple.

[Oshosondy]

This is not new on this trading discussion. We all the time warn people to trade with the amount of money that they can afford to lose. I have posted many times before on the trading discussion on this forum about how 85% or more of traders that are losing. There is nothing new about this.

Hope your money is not going to gambling also because I think you lost huge amount of money while trading recently.





This image also shows that you were never an active poster on trading discussion board on this forum. I noticed that I did not noticed anything relevant about trading about you before on trading discussion. I know the good trading discussion posters and they are not many.

[CAAS]

...90% of Stock Market Traders are in Loss...

How much sustainable, repeated profits are available for the 10 to 20% of traders who are successful? Savvy, winning traders are rare but they do exist, and - unlike gambling - you have a real chance to win long-term since you are competing against other traders.

Don't day trade, you're going to lose your money = Good advice for you and many others, but a horrible thing to say to a young person with potential to enjoy a great career as a successful trader and investor.

[AmoreJaz]

...90% of Stock Market Traders are in Loss...

How much sustainable, repeated profits are available for the 10 to 20% of traders who are successful? Savvy, winning traders are rare but they do exist, and - unlike gambling - you have a real chance to win long-term since you are competing against other traders.

Don't day trade, you're going to lose your money = Good advice for you and many others, but a horrible thing to say to a young person with potential to enjoy a great career as a successful trader and investor.

That I can really agree with because in gambling, it is all based on luck if you happen to play casino classics. But in trading, you have better chance especially if you know the coin you are dealing with. The more information you know about the project, the better your chance of earning profit. Just discard such piece of advice because once you are well-equipped in this market, you can work around with your trading activities. Definitely, start with small funds as you need to get good grasp of how crypto trading works. Everyone started here from somewhere, just like in forex.

[TastyChillySauce00]

honestly day trade is so random in term of profitability, nobody can guarantee whether you gonna lose your money or make profit, it is at the end of the day comes down to statistic and as of now 90% of trader are losing money, doesn't mean all losing money, if you got the edge you might become the remaining 10% who is profitable.

basically it depends on you and your trading ability, like any other activity, even arbitrage has chance of losing, doesn't mean everybody is losing though.

[memehunter]

Short-term trading, for the average Joe, is a game with a negative EV (trading fees). If you try to trade news, you will always be behind the news creators and if you take a trade based on TA, it is just random noise, nothing else. The only way is to locate your servers close enough to exchanges in order to gain some edge in terms of execution and become high frequency trader, which I guess if you have access to then you would not have been the average Joe

[shawonngp]

honestly day trade is so random in term of profitability, nobody can guarantee whether you gonna lose your money or make profit, it is at the end of the day comes down to statistic and as of now 90% of trader are losing money, doesn't mean all losing money, if you got the edge you might become the remaining 10% who is profitable.

basically it depends on you and your trading ability, like any other activity, even arbitrage has chance of losing, doesn't mean everybody is losing though.

I agree with your sir, day trade is risky, it's completely uncertain way especially in day trading, but long term trading is profitable if will show patient, trading ability is everything in trading, who are experienced in trading, possible to make profits in day trading, but no guarantee about consistency even experienced traders.

[shinratensei_]

Short-term trading, for the average Joe, is a game with a negative EV (trading fees). If you try to trade news, you will always be behind the news creators and if you take a trade based on TA, it is just random noise, nothing else. The only way is to locate your servers close enough to exchanges in order to gain some edge in terms of execution and become high frequency trader, which I guess if you have access to then you would not have been the average Joe

the most profitable day trade activity is MEV bot because you actually exploit a loophole and those big MEV bot runner are racking profit big time.
but as far as I know day trader make technical analysis and usually detached from the news, if it happens that news appear, they mostly close their position to avoid market volatility and see next opportunity.
as from my experience, we can make money from day trade, even consistent, as long as you only use small amount of your capital as margin, like 1% probably, so if you lose you can compensate.
it's unlike those depiction where people are making hundred grand every day from trading, its tedious and tiring job, overtrade will easily blow up your entire month profit.

[Mpamaegbu]

So let's see why if you're thinking of day trading you'd better not do it because you're likely to lose your money, everything and more. The longer you trade the more likely you are to lose, and if you use leverage you will lose it quickly.

Should we take this as a financial advice? In all conclusiveness, so no day trader is profitable? You're in for long term hodl? Is that what your submission is all about?

but also ask yourself: why is no one as famous as Buffett a day trader? The answer is very simple.

Even though you left your last sentence with an assumption that we should know, I still don't know what the simple answer is. Nonetheless, I like to let you know that every businessman or investor won't have the same temperament and shrewdness of Warren Buffett. We all aren't built the same way, and it doesn't mean that Warren Buffet's way is the only right way to do it.

[Hatchy]

Every trader has a particular type of trading time that best suit their strategy. It doesn't matter if you are a day trader, a scalper or a swing trader, so long you are profitable. I don't actually see those fees collected by brokers as much. Most times it depends on your positions and lot sizes for crypto( leverage). They take little fees when your trades sleeps over to the next day called swap fee. A traders experience in the market is what matters not much about the brokers fees...

[Dr.Bitcoin_Strange]

It's not just about day trading, there are different types of trading, (scalping, day trading, swing trading, etc), but generally, trading is a very risky activity. On countless occasions, different topics and comments on this board have warned against the risk in trading and anyone that have the zeal to trade must always have it at the back of their mind that losses are usually inevitable no matter the strategy you are using.

Most of the times, people are usually referred to holding, rather than trading. So, you have not said what has not been discussed before now, but not bad to still remind some newbies with the idea of getting rich quickly through trading.

[Don Pedro Dinero]

This image also shows that you were never an active poster on trading discussion board on this forum. I noticed that I did not noticed anything relevant about trading about you before on trading discussion. I know the good trading discussion posters and they are not many.

Of course I wasn't, because trading is a more a way of losing money, not making it. I am a long-term investor.

What are you trying to do, discredit me? You'd better worry instead about demonstrating that it is easy to get the returns you say it is easy to get.

<...> but a horrible thing to say to a young person with potential to enjoy a great career as a successful trader and investor.

Please don't talk rubbish.

That I can really agree with because in gambling, it is all based on luck if you happen to play casino classics. But in trading, you have better chance especially if you know the coin you are dealing with. The more information you know about the project, the better your chance of earning profit.

It depends. Skill games are similar to trading.

Short-term trading, for the average Joe, is a game with a negative EV (trading fees). If you try to trade news, you will always be behind the news creators and if you take a trade based on TA, it is just random noise, nothing else. The only way is to locate your servers close enough to exchanges in order to gain some edge in terms of execution and become high frequency trader, which I guess if you have access to then you would not have been the average Joe

Exactly, plus you play against high frequency trading algorithms, and nowadays also AI.

[Wakate]

...90% of Stock Market Traders are in Loss...

How much sustainable, repeated profits are available for the 10 to 20% of traders who are successful? Savvy, winning traders are rare but they do exist, and - unlike gambling - you have a real chance to win long-term since you are competing against other traders.

Don't day trade, you're going to lose your money = Good advice for you and many others, but a horrible thing to say to a young person with potential to enjoy a great career as a successful trader and investor.

Trading is can rally look good and a huge source of income to many people that thinks in such perspective but the reality is absolutely different. Just like the stick market, there are also many traders that are in huge losses but would not come out publicly to let people know. I keep seeing people posting their success in trading not their misfortunes. We are in the era where every trader is claiming to be successful when their portfolio are bleeding.

The really traders don't come out to voice their success. It actually appears like a smoke covered with a basket with bigger holes. Whether you are a day trader or swing trader, I believe that everyone has a strategy that is working for them. If you have a profitable strategy that is earning you profits from day trading, that's fine and if you are scalper with a  profitable strategy, that's fine too. The aim is to make profits from the market.

[RockBell]

That I can really agree with because in gambling, it is all based on luck if you happen to play casino classics. But in trading, you have better chance especially if you know the coin you are dealing with. The more information you know about the project, the better your chance of earning profit.

There are people that actually do day trading It's working for them, even if majority have to rely on luck because you cannot exactly be able to to get it right always and when you talk about the trading to me, there is not much difference with gambling Just start in gambling You can't reduce a lot of things that put every risk on the measure, but dumpling does not have those features.

No matter how good you are in quite selection you still have to hope for luck because even people with knowledge are losing money but they just have to depend on and the same way that people want to make money but futures comes with a lot of responsibility they have to know how to read charts and be able to interpret exactly what is actually the truth you will just have to have the mind of handling your loses.

[hd49728]

There are people that actually do day trading It's working for them, even if majority have to rely on luck because you cannot exactly be able to to get it right always and when you talk about the trading to me, there is not much difference with gambling Just start in gambling You can't reduce a lot of things that put every risk on the measure, but dumpling does not have those features.

They can be professional traders with trading is their main jobs, but even professional traders don't force themselves to trade every day. There are days, they will stay outside the market and do nothing, it's how professional they are in trading.

Amateur traders who do daily trading, not because they are professional or good at trading, but it's because they are trading addictive and they don't see risk of over trading that can affect their trading capital negatively and possibly cause big loss.

With traders, amateur or professional, manage risk and defend their initial trading capital is everything that is important they must do. If they can not defend their initial capital, their trading career will end after they lose all that capital. It's most vital skill they need to prepare before trading and master through their trading experience.

[jcojci]

honestly day trade is so random in term of profitability, nobody can guarantee whether you gonna lose your money or make profit, it is at the end of the day comes down to statistic and as of now 90% of trader are losing money, doesn't mean all losing money, if you got the edge you might become the remaining 10% who is profitable.

basically it depends on you and your trading ability, like any other activity, even arbitrage has chance of losing, doesn't mean everybody is losing though.

I agree with your sir, day trade is risky, it's completely uncertain way especially in day trading, but long term trading is profitable if will show patient, trading ability is everything in trading, who are experienced in trading, possible to make profits in day trading, but no guarantee about consistency even experienced traders.

You can day trade only if you have good skill in trading so you can analyze the market and find the coin to trade. Day trade is risky but if we can learn more about trading, we will reduce the risk and make a profit. They must learn more about trading so they can understand how to analyze the market. If they can learn and take their time to trade, they will know when to enter the market and pick the coin and take their profit. They will not greed to chase more profit if the situation is not good..

[Bitcoin Smith]

In my country the situation got much worse due to the wrong taxation policies from government. Every trade has to pay 1% as tax from the trade amount which is irrespective of whether we made profits or lose during the particular trade made the day trading as impossible to be a sustainable model to make any profit at all.

If someone wants to make real money with not much of complicated strategies and analysis all they need is to HODL the accumulated BTC.

[TheUltraElite]

I disagree to the comparison of trading to MLM.

You have day trading and you have long term trading - I discourage the former but do support the latter because in my experience it can be profitable if done properly.

Day trading is also profitable but I find it more stressful and difficult to handle for those who have a big life outside their computers.

But trading mindset is also important and most people dont have that.

[Sebas.tian]

If you don't have the experience of day trading, don't involve in day trading, because you are going to lose huge funds and it will make you feel that it is possible for people to achieve income from day trading, because you don't have the experience. If you have the experience of day trading, it will be difficult for you to lose so much from your day trading, because you have to rely on your strategies and experience whenever you are embarking on a day trading, to make sure you continue achieving income either huge or small. I have tried day trading many times, it didn't give me what I want from the trading which is the reason I have change my mind to use small amount of funds to do day trading, because the pressure of the day trading is too high.

[tbct_mt2]

You have day trading and you have long term trading - I discourage the former but do support the latter because in my experience it can be profitable if done properly.

Day trading is also profitable but I find it more stressful and difficult to handle for those who have a big life outside their computers.

But trading mindset is also important and most people dont have that.

If you are going with long term trading, it contains risk, and does not like zero risk.

I don't know what you do with your long term trading, but a longer time you leave your coin on centralized exchange, the more risk. Additionally, the longer time you let your trading position opens, the more risk especially if it's leverage or futures trading position.

Day trading or long term trading, use Stop loss order.
One of the best weapons in trading.

If it is long term trading, I would like to do it as my investment. Withdraw my coin off exchange and only deposit it to exchange for taking profit.
Reminder: do not keep your money in online accounts