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

[bettercrypto]

I agree with what you are saying, op, where for every closed position we make, there is a fee that is deducted from us, whether it is spot or futures. And I have also tested that if you do not place a stop loss, it can really cause us to liquidate often.

That is why this is very important and a good habit because we will have control over our loses when we carry out trading activity whether short or long-term.

[$weetne$$]

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.

I would not advice anybody that is starting to trade newly to go into day trading but for someone would had gotten the experience from their years of trading, they can put that knowledge to good use by day trading and they will make profits. There are some people that are day trading and making profit therefore if someone can do it so can you. I am not saying day trading is easy but I am saying, you can decide to be a trader that does it daily and still be making profit but before you do it, you have to be very skillful in trading already. Some people that try to say trade are going to lose money but with the right guidance from experience mentors and discipline, you can make a profit from both day trading and trading in general.

[o48o]

-cut-
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.
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.

Let me unpack some of them:

1: True, but those are actually quite small in crypto trades.
2. I disagree. It's hard, but not harder then high frequency trading. There are studies in psychology on how to beat your fears and be more in control, and these techniques are actually working. They aren't based on luck, but just psychology and growth. They are also in many ways beneficial in your life, other than trading. There however isn't any working method on how to be a good trader.
3. Sure, but even time and experience can't guarantee you winnings. In fact sometimes you make more money with beginners instincts and luck.
4. This just isn't true. If it would be mathematical impossibility, there wouldn't be any millionaires that started trading with that amount. And i know at least one for sure.
5. This is true.
6. I fail to see what survival bias has anything to do with success stories. Warren Buffett doesn't believe in day trading or technical analysis, and i sort of agree to a point. There are just so many ways to do technical analysis that i really can't just blindly believe all of it.

[mrkhan90]

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 think that you could express a best opinion in your comment. So I am also agree with your prefer comment. We also know that short term trading is very risky for any person. If we will be a new traders it will be very risky, because we can not understand suddenly what do we should in cryptocurrency trading. But if we follow in long term trading, it will be very helpful for us. Because when we start long term trading, then we can decide what should need in this time. So I think that we should trying to understand in cryptocurrency trading and need to acquire knowledge in cryptocurrency world, then we can earn best profit from cryptocurrency market.

[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 think that you could express a best opinion in your comment. So I am also agree with your prefer comment. We also know that short term trading is very risky for any person. If we will be a new traders it will be very risky, because we can not understand suddenly what do we should in cryptocurrency trading. But if we follow in long term trading, it will be very helpful for us. Because when we start long term trading, then we can decide what should need in this time. So I think that we should trying to understand in cryptocurrency trading and need to acquire knowledge in cryptocurrency world, then we can earn best profit from cryptocurrency market.

Expert traders would like to short term trading, they are mostly comfortable to day trading i know some people, long term trading boring for them, they want to make profits in daily, but even expert traders can not make profits in consistently it's impossible, because they don't know what happen in the next after bought a token.

[Webetcoins]

Two basic problems cause losses in trading when a person is day trading. The first one is to do futures trading with high leverage and less knowledge. We often see newbies getting into futures trading when they hear or see some other traders getting good profits from it, but they don't realize that there is more risk than reward in this, and they jump in. Soon after that, they got their account blasted because they couldn't handle the risks involved.

The second problem is overtrading, as you mentioned it. When you get into trading, you are not supposed to make a lot of trades with the mindset that your profits will be higher this way because it is a wrong mindset. More trades mean more fees and, of course, higher risk exposure.

Hence, if someone can gain enough knowledge beforehand and doesn't do these things, the chances are they are going to become profitable in the long run.

[fikrett]

Expert traders would like to short term trading, they are mostly comfortable to day trading i know some people, long term trading boring for them, they want to make profits in daily, but even expert traders can not make profits in consistently it's impossible, because they don't know what happen in the next after bought a token.

These people aim to be in profit by having more good positions than the bad ones. The difference is in PNL, of course.
Trader is not the one who is getting profits all the time, it is the one who is getting them by the end of his sessions.

[Cryptmuster]

Two basic problems cause losses in trading when a person is day trading. The first one is to do futures trading with high leverage and less knowledge. We often see newbies getting into futures trading when they hear or see some other traders getting good profits from it, but they don't realize that there is more risk than reward in this, and they jump in. Soon after that, they got their account blasted because they couldn't handle the risks involved.

The second problem is overtrading, as you mentioned it. When you get into trading, you are not supposed to make a lot of trades with the mindset that your profits will be higher this way because it is a wrong mindset. More trades mean more fees and, of course, higher risk exposure.

Hence, if someone can gain enough knowledge beforehand and doesn't do these things, the chances are they are going to become profitable in the long run.

The main mistake of a beginner is that he starts with futures, and for a beginner it would be worth starting with spot, where his deposit would be much safer. A large shoulder is a pursuit of quick money, and it is good if a beginner starts with a small deposit, because he will lose it in any case, it will be a lesson and in the end it is good if he switches to spot and he will have something to trade. A beginner will initially have a lot of desire and will make many deals, because he will be very passionate about trading, and in order to understand how everything works, he will need time.

[qurbanshah02]

These people aim to be in profit by having more good positions than the bad ones. The difference is in PNL, of course.
Trader is not the one who is getting profits all the time, it is the one who is getting them by the end of his sessions.

A good trader will enable himself to avoid loss, that is he does not turn to profit, because of which he does not covet.  If our goal from the beginning is to make profit, then we will not be successful because any work, business or any other has both profit and loss in it so we should take a step with patience and good understanding from which we can also make profit and if we go into loss then the loss should not be so much that we can worry about it which will be added to the calculation of our profit.

[EarnOnVictor]

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.
-snip-

Your perception is wrong and the advice is not smart, day-trading is part of trading styles that have "blessed but also ruined" people's finances just like any other style of trading you can talk about, holygrail doesn't exist in trading. Still, if you know your day-trading strategy very well, manage/plan your trade rightly and are disciplined, then you will have good results. However, trading is risky, it is either you risk it or leave it.

Nevertheless, I agree with you on those brokers/exchanges making more money through day-trading. This is why I open a maximum of 1-2 trades daily. Although the practice is in line with a good day-trade practice and the gainable amount is not too big for the service they render.

[Don Pedro Dinero]

Your perception is wrong and the advice is not smart, day-trading is part of trading styles that have "blessed but also ruined" people's finances just like any other style of trading you can talk about, holygrail doesn't exist in trading. Still, if you know your day-trading strategy very well, manage/plan your trade rightly and are disciplined, then you will have good results. However, trading is risky, it is either you risk it or leave it.

No, it is not wrong, because with the thread what I wanted to put is a contrast to all those ads and influencers who sell you that learning a little trading you can make money easily. The statistics are there, however much the trading houses that live on fees and influencers who charge for promoting trading do not show them or underestimate them. For someone who has never traded before and is considering starting now, they are likely to lose their capital.

[memehunter]

day-trading is part of trading styles that have "blessed but also ruined" people's finances just like any other style of trading

Playing dice is also a kind of trading but with negative edge (core argument). You can argue the same for any casino game with negative EV that some will win and some will lose, but the real question is can you make sustainable income from day trading, answer is NO, the math is not on your side.
Yes, there will be occasional winners with longer winning streak, just like in casino, but overall population will make a perfect bell curve as per the odds (which are not in your favor.)

[stomachgrowls]

day-trading is part of trading styles that have "blessed but also ruined" people's finances just like any other style of trading

Playing dice is also a kind of trading but with negative edge (core argument). You can argue the same for any casino game with negative EV that some will win and some will lose, but the real question is can you make sustainable income from day trading, answer is NO, the math is not on your side.
Yes, there will be occasional winners with longer winning streak, just like in casino, but overall population will make a perfect bell curve as per the odds (which are not in your favor.)

Totally disagree!

When it comes to trying out to make comparison or trying out to say in between gambling and trading then its really that totally different. Yes, when it comes to risks then there's risks and trading would become that gambling at the moment or time that you will be not applying any analysis then this is where you can say that it is gambling. Day trading is risky but i do see that futures will really be that even more riskier. Trading loses is inevitable because market is really that unpredictable and there's no way that we can be able to predict on where price will be going. There are still those who do make day trades on which we know that there are different trading styles on which it could be that daytrading,scalping,swing trades and long term trades.

If you dont like on losing money then better not to trade, as much more on doing gambling. There will those times or moments that you are really that becoming that too optimistic but ending up on having some disappointment. On the time or moment that you deal up with trading then expect you can have those loses. The important thing on here is that you do really lessen up the risks as you do go forward. It is really just that too impossible that you wont be able to learn things along the way.

[Oshosondy]

Playing dice is also a kind of trading but with negative edge (core argument). You can argue the same for any casino game with negative EV that some will win and some will lose, but the real question is can you make sustainable income from day trading, answer is NO, the math is not on your side.

You are not getting it right if you are comparing gambling with trading. They are completely different but their risks can be the same for people that do not know how to trade. Some people could have been trading since many months but do not know how to trade. Some people will even would have been trading for years and still be losing. But if you ask an experienced trader and gambler if trading is the same as gambling, the trader who is also gambling will tell you no. There is more probability for traders to make money but which is not true for gamblers.

[memehunter]

Totally disagree!

No problem at all, now let's look at your arguments which propelled you to disagree.

When it comes to trying out to make comparison or trying out to say in between gambling and trading then its really that totally different. Yes, when it comes to risks then there's risks and trading would become that gambling at the moment or time that you will be not applying any analysis then this is where you can say that it is gambling. Day trading is risky but i do see that futures will really be that even more riskier. Trading loses is inevitable because market is really that unpredictable and there's no way that we can be able to predict on where price will be going.

I should sue you for murdering my brain cells.  .
How can you write so much repetitive crap without saying anything substantial? I think your conclusive line (bolded out part) is supporting my claim.

There are still those who do make day trades on which we know that there are different trading styles on which it could be that daytrading,scalping,swing trades and long term trades.

Really!,
long-term trading is one of the types of day-trading? . For your kind information there are various type of Dice strategies also. How does this lead you to disagree with my stance?

If you dont like on losing money then better not to trade, as much more on doing gambling

OK, thanks for your sound financial advice. I thought we were talking about day-trading not trading itself.

There will those times or moments that you are really that becoming that too optimistic but ending up on having some disappointment. On the time or moment that you deal up with trading then expect you can have those loses. The important thing on here is that you do really lessen up the risks as you do go forward. It is really just that too impossible that you wont be able to learn things along the way.

RIP, my brain cells. 

There is more probability for traders to make money but which is not true for gamblers.

How ?

If anybody want to have a serious attempt at this, I will ask you to first read my thread: A Death Knell to Short-term/Intra-day Traders. This will give you an overview of my position so that we can have a better discussion.
And please have some mercy on brain cells .

[el kaka22]

This is true, OP is right about the easiness of it. Everyone thinks it's sooooo easy to trade, and while there are some humans in the world (very rare) that easily understands how to do it and get richer, in most cases we are not going to see this be that easy for anyone at all. Obviously we need to make sure that things aren't that simple, and we could always make it change with time as well.

So all in all, if you really want to make a lot of money, then you need to spend a lot of time and get a lot of experience to be a good trader. I would say veterans won't really care about what OP says anyways, they are veterans, so the best way to move forward is to assume that OP means the newbies or the likes when he says don't day trade.

[Rengga Jati]

Expert traders would like to short term trading, they are mostly comfortable to day trading i know some people, long term trading boring for them, they want to make profits in daily, but even expert traders can not make profits in consistently it's impossible, because they don't know what happen in the next after bought a token.

I think it doesn't depend on the level of the traders. Even if they are experts, they may be interested in long term as well. I think traders choose whether for short or long term trading, depending on the market condition, too. So, the experts are possible to do both short and long term together. How the chance for the success? Since they are called as experts, surely the chance will be high (both for short and long term).

[EarnOnVictor]

day-trading is part of trading styles that have "blessed but also ruined" people's finances just like any other style of trading

Playing dice is also a kind of trading but with negative edge (core argument). You can argue the same for any casino game with negative EV that some will win and some will lose, but the real question is can you make sustainable income from day trading, answer is NO, the math is not on your side.
Yes, there will be occasional winners with longer winning streak, just like in casino, but overall population will make a perfect bell curve as per the odds (which are not in your favor.)

I understand the school of thought you are driving at but you shouldn't have used trading as a kind of gambling, they are two different things even though they look similar. Again, you asked a question and also answered it yourself, that's funny of you to speak for everybody. If you can't sustain a good result for day-trading, does that mean other people can't? Day-trading may be very risky but it's not the reason why it should be totally condemned.

[Lamkuthang]

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.

I see the ambition of ignoring spot players or futures players who want quick profits and not a year's accumulation that can get 3% profit from capital is considered sufficient. This market is like playing a bet, the more profit is obtained, the more obsessed you are to place a bigger bet so that the concept of folding sees the profit running. Buffett has many points and doesn't think too much about small things like that, he only says the concept for psychology, he certainly won't guarantee that everyone will be able to follow as he does.

[knowngunman]

"A man who is a master of patience is master of everything else". George Savile

Day trading or traders in general are set of impatient people who are eager to take advantage of the market in a short possible time. I'm quite sure that every experience trader is fully aware of everything you highlighted in Op but unfortunately they have chosen the path to lose more money than being patience to hold their coins for a long period.

You could simply put it, don't trade because you'll likely lose your money in the long run. Not specifically for day trade.