(NeverTrade.org) Why You Should Never Day Trade: The Risks of Retail Trading Explained in One Minute
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- Опубліковано 4 кві 2023
- I've done this economics thing for many, many years. And over these years, I couldn't help but realize that the more you learn, the more you realize how little you know... especially in this field, I dare say :)
However, despite the fact that so few certainties exist, there is one thing I am convinced of: retail trading ruins lives.
Don't day trade, in other words, just don't.
From countless studies such as the ones quoted throughout this video to anecdotal examples involving day trading gone wrong to such a degree that it turned into an addiction, the evidence is literally shouting at you.
Why do people day trade, then? Simply put, the allure of day trading is such that folks get attracted to the proverbial dream: getting rich, enjoying life on some remote island and only clicking a few buttons each day.
Unfortunately, said dream doesn't result in realized gains for day traders statistically speaking. On the contrary, it's those who sell the dream in question (overpriced books, mastermind classes, trading groups, you name it) who proverbially make it, with the lives of their "customers" in shambles.
I truly hope this video on the one hand and my NeverTrade.org website on the other will help as many people as possible avoid ruin. If you stand by this initiative, please help me spread the word however you can.
To buy the book Frank Schilling and I have written, head on over to the stores below :)
Amazon: www.amazon.com/Omnia-Vincit-Universe-Wants-You/dp/B0BKMV9VK9
Barnes & Noble: www.barnesandnoble.com/w/omnia-vincit-frank-schilling/1142564384?ean=2940166651587
Apple Books: books.apple.com/us/book/omnia-vincit-the-universe-wants-you-to-win/id6444029912
Kobo: www.kobo.com/ww/en/ebook/omnia-vincit-the-universe-wants-you-to-win
Lack of knowledge and decision making based on Emotions cause lot of retail investors to lost money , also over trading and poor risk management. Thanks for the video explained to the point in short time
Also the lack of anything even resembling an edge and many other factors unfortunately... when it comes to retail traders, that is. Retail investors are in a much better position to ultimately succeed because even if they are downright horribly unlucky when it comes to timing each and every time they buy something, chances are they will do ok in the long run if they maintain their habit of saving money and gradually acquiring desirable assets. Oh and most importantly, never trading. Ever.
couldn't agree more
Most people won't be professional athletes. Most people won't be successful business owners. Most people won't be anything. I would agree the 90% will never be consistently profitable traders. But for those people willing to put in the time, work and money, take the hard hits and learn and develop, they certainly can become profitable traders. Why would anyone bother to go through this? Huge financial gain. The truth is its possible and quite worth it but the 10% must be better than the 90%. Unfortunately with trading you could devote your life to it and still not make it. It's a zero sum game
I would add to this, that brokers will advertise trading as simply and easy. It certainly is simple to execute trades. But not easy!!
This kind of leads us to the question I've asked when replying to another comment: given this very low likelihood of success and the amount of stress, work and so in involved... why do it?
With all the possibilities of doing awesome stuff with your skills that exist, why settle for this activity?
@@OneMinuteEconomics the truth is, not 90 or 97%. its 99.9% of traders lose money!!!
Very important video and site. A 2020 study by Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? found out that 97% of day traders lost money as well.
Thanks a lot for the support!
Risk Management and emotional control is what affects retail traders , If they master it they too can be profitable .
They can, as in it's possible... but probably won't, as in it's highly improbable. With so many much better uses of your time, talents and energy, why this?
Nice
Glad you like it!
This is like telling people not to go to Vegas.
Not quite, because trading is a far more misunderstood topic. Look at it this way: if you go to your family's Thanksgiving dinner and tell your relatives you intent to go to Vegas so as to get rich and have a foolproof plan, they will tell you it's a bad idea and even that you should seek treatment. Tell them you will get rich through a brilliant "technical analysis" strategy instead and some will consider you a genius. Hope you get the point.