I appreciate the passion in your comment, but I’d like to offer a thoughtful counterperspective on day trading, addressing your points about its perceived flaws, tax implications, and comparisons to buy-and-hold strategies, while keeping the tone respectful and constructive. Your critique raises valid concerns, but day trading, when approached with discipline and a statistical edge, can be a legitimate and effective trading style for many, and it’s worth unpacking why it’s not inherently "dumb" or doomed to fail. First, let’s tackle the idea that day trading’s logic is flawed because it involves closing positions based on time rather than price. Day trading isn’t about arbitrarily exiting trades at the end of the day; it’s about capitalizing on short-term price movements driven by intraday volatility, news, or technical setups, often with predefined price-based exit criteria. Skilled day traders use strategies grounded in statistical probabilities, such as scalping high-probability setups or exploiting momentum breakouts, and they set stop-losses and profit targets based on price levels, not just the clock. For example, a trader might exit a position when a price hits a resistance level or a technical indicator signals a reversal, regardless of the time of day. The decision to close by day’s end is often a risk management choice to avoid overnight gaps caused by unexpected news or events, which can wipe out gains in volatile markets like futures. This approach prioritizes capital preservation over holding positions through unpredictable periods, which is a strategic choice, not a flaw. Your point about taxes is well-taken—day trading gains are typically taxed as short-term capital gains, often at a higher rate than long-term gains from buy-and-hold strategies. However, this tax disadvantage doesn’t render day trading unviable. Your example suggests a day trader needs to gross 40.9% more to match a buy-and-hold investor’s net gain after taxes (e.g., $14,090.91 gross to net $7,750). While true in a vacuum, this comparison overlooks key factors. Day traders can generate significantly higher gross returns by compounding smaller, frequent gains across multiple trades, leveraging the high liquidity and volatility of markets like ES Mini futures. For instance, a disciplined trader might achieve consistent daily profits that, even after taxes, outpace the annualized returns of a buy-and-hold strategy, especially in flat or bearish markets where long-term holdings stagnate. Additionally, tax strategies like trading through tax-advantaged accounts or offsetting gains with losses can mitigate the tax burden. The tax hit is a challenge, not a dealbreaker, and many traders outperform the deficit through rigorous risk management and high-probability setups. The comparison to owning a home is an interesting analogy, but it doesn’t fully align with trading dynamics. A home is a long-term investment with different risk profiles and liquidity constraints, whereas day trading is about exploiting short-term opportunities in highly liquid markets. The “overnight risks” you mention—such as geopolitical events or earnings reports—can cause significant price gaps in futures, which day traders avoid by closing positions daily. This isn’t about fear but about controlling exposure in a market where volatility can erode gains overnight. Unlike a home, which you can’t sell daily due to transaction costs and illiquidity, futures contracts allow rapid entries and exits with minimal friction, making day trading a viable strategy for capturing intraday moves without holding through unpredictable periods. Finally, dismissing day trading as “fundamentally dumb” overlooks its potential when executed with skill and discipline. It’s not for everyone—high-pressure environments demand intense focus, robust systems, and emotional resilience—but it’s far from illogical. Day traders, like those using advanced momentum indicators, leverage statistical edges to achieve consistent returns, often outperforming buy-and-hold in specific market conditions. The key is results, not preconceptions, and for many, day trading delivers those results through hard-won expertise, not blind luck. I’d love to hear more about your perspective—what specific flaws do you see in day trading strategies, and how do you approach risk in your own trading? Let’s keep the conversation going! grok3 disagrees with your foolishness - but i still like you
Clown Show!! Of course you dont like day trading.. Has nothing to do with being a pussy,it has everything to do that you have ZERO risk management skills and are a double down investor when wrong and a swing trader when right. Case in point..Your SAVA masterpeice vs your "supposed" MSTY poistion Day trading would force you to liquidate at the close when wrong,and that would go against WXY Elliot wave 101 and your hold em forever when wrong.. And I quote "Day trading avoids risk, but on average leaves more upside on the table" Hmmmmm....Leave a bit more upside on the table,but AVOID risk??? And You have a problem with that??