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.