I have been day trading for 2 years, before that another few years of swing trading. Recently i have been losing small, but also winning small amount, account never increase much, not swinging so big amount, partly because i have been hit by sudden big unexpected loss, but did recover the loss. I realise every strategy has a loop hole, no matter what strategy u used, u can be profitable for a while, then hit by sudden unexpected loss. Size is of course a big factor. So is it a waste of time trading?
Not if it gives you something legitimate to whine about. Innovest: "Dr. Deco, should I stop poking myself in the eye with this needle?" Dr. Deco: "No! Most certainly not! You are entertaining everyone around you and making them feel smart!"
Do what some of the most profitable professionals do.. trade other peoples money and pocket commissions and management fees. You will never lose.
There is a steady stream of people who pop up on ET, convinced they are going to make it as traders. "It is just a matter of time - put in your 10K hours of screen time...". I think your post should be framed as a cold dose of reality. Welcome to the statistical 95%
Yes, daytrading is a waste of time compared to swing trading. Why? Daytraders are STUPID AND DUMB. They have no understanding of REAL business, even though they want to trade as a BUSINESS. What is the difference between a daytraders insane dream and a REAL business? 1. In a real business you account for your own or employees salaris. You therefore have to subtract at least 20-30k USD from your winnings JUST TO BREAKEVEN, when daytrading. 2. A real business grows organically, not with the use of leverage. Daytraders use TONS of leverage, and then blow-up. A real daytrader only trades with 1 emini contract per 10k USD. AKA if you don't start daytrading with at least 200k USD (AKA RICH) You WILL FAIL. Dumb daytrader: "I treat daytrading like a business, but I don't subtract salaries from my winnings. That's because I am too dumb too know that a business always pays salaries. I am that dumb because I have never worked a real job in my lives, but I like to think I'm smart"
Glad I'm "stupid & dumb". And even more stupid since I've been doing this going on 15 years. No understanding of business? LOL When one day trades they pocket their profits on a daily basis, thus paying themself each and every day which isn't all that different than receiving a paycheck every 2 weeks from some corporation. In daytrading you don't subtract $20K to $30 to break even. You net out your commissions which can be lower or higher than what you posted. And wake up -- every business has costs of doing business. You own a restaurant you have electricity, water, rent, cost of food, wages, etc. You own a retail shop and you face similar expenses. You say you'll fail if you don't start with at least $200K. I started with $90K back in mid 90's. And I'm here today still profitable. Last, trading remote means you have lesser costs than some corporate grunt (commuting expense, lunch, professional attire, ....) and less than someone with a brick and mortar operation. Bottom line is that if you have reasonable intelligence, are motivated and willing to adapt to changing market conditions you can do very well trading, not only financially but with freedom to do as you please with your time each and every day of your life.
You still don't understand... you have to pay yourself salary (when spending 8 hours a day)... have you lived frugal? If not... props to you. If so.. then having a real job and living frugal would have probably made you twice as rich as you are today.
No, I understand very well! I'm afraid you don't understand. A salary is paid for services rendered -- and as a trader that is the time spent during the day trading. And for me it's 7 hours per day maximum (9:15 to 4:15). If you work as an engineer for a corporation you get paid $x per month (year). You can divide that and determine what you're paid per day. Nope, having a 'real' job and living frugal would NOT have made me twice as 'rich' as I am today. On the contrary, I'd likely be worse off due to the expenses I formerly incurred as a corporate employee that I do NOT incur as a trader. Last, you cannot put a price tag on freedom. I was finished today at 2:00 - a 5 hour day and hit my profit objective. How many corporate grunts can pack up and leave at mid day?