I have really wanted to write an article on why I hate day-trading for
some time now…because I actually do HATE it…Day-trading is something
that everyone knows about; you could walk up to any stranger and say
“what do you think about day-trading？”, and they would probably say
something like “risky, but it can make you rich really fast”.
Day-trading is one of the main ideas that lures people into the trading
world; they think they will make some fast money and live the “dream” if
they just learn how to “day-trade”. However, once they try it, most
people quickly realize that its time intensive, stressful, and extremely
difficult to make consistent money at.To get more news about
WikiFX, you can visit wikifx official website.
If you get hooked on day-trading you are going to enter into a game of
‘quantity over quality’ of trades, and that is not what we believe in
here at Learn To Trade The Market. Our goal is to help traders ‘preserve
capital’ and wait patiently for only the ‘high probability trades’.
Hopefully this article gives you some insight into why day trading is
typically a highway to disaster for most traders.
I hate the façade of the stereotypical “day-trader”…
There seems to be an impression among the general public that if
you‘re a financial market speculator of any type you’re a “day-trader”
sitting at home in front of multiple monitors making tons of frantic
keystrokes and phone calls all day. Indeed, it seems more prestigious
for us to tell our friends and acquaintances that we are “day-traders”
during a lunch or dinner conversation…because when you tell someone
you‘re a day-trader they immediately get a certain image in their head.
If you say “I’m a daily chart swing-trader and I trade 4 to 10 times per
month”….well that just sounds a lot less glamorous doesnt it？
This Illusion of the “day-trader” is something that appeals to many
people simply because they want to say they are “day-traders”…there‘s a
certain perception of being some young and rich “day-trader” making
millions and having a Ferrari…it ain’t reality though…
The reality of a day-trader is a guy who got 2 hours of sleep last
night because he was trying to trade the overnight session, now he‘s up
at 6am trying to day-trade the next session. Many traders get sucked
into trying to become a rich day-trader largely because that’s what they
think is socially acceptable or “cool”, and it turns into them being
glued to the charts every chance they get and probably not making much
money (if any). This is not a healthy way to trade and its definitely
not a healthy way to learn how to trade.
As a trading educator, it makes me HATE day-trading even more when I
think about all the trading websites out there promoting it and how a
lot of them are geared towards beginner traders, not to mention how
heavily day-trading and scalping are discussed in almost every public
trading discussion forum on the internet. Day-trading is something that
should only be attempted by a very experienced trader, and probably
should just not be attempted at all.
You need to think of trading like building a house; first you need a
foundation to build the house on, then as the house progresses you get
down to finer and finer details until finally you are discussing how to
decorate the interior and what type of TV to buy. As a trader, you NEED
to understand how the higher time frame charts work and higher time
frame price dynamics before you attempt trading the lower time frames.
Trading should ALWAYS be taught and learned in a top-down technical
approach, so that you understand what the higher time frames are doing
before you try lower time frame trading or day-trading.
The Wall