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Why you’ll never succeed in day trading

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Breaking truth: why you’ll never succeed in day trading

Day trading is known to be a risky trade, as it has its ups and downs. It’s not likely that a person will be able to, on a daily basis, gain the amount of profit that he or she has aimed for. A person who is day trading will have both the ups and the downs of it. But unfortunately, day trading might give you more of its downs. There are many reasons why a person will never succeed in day trading and here are some of them.

1. The strategy you are using

Like any kind of trading, a strategy has to be put in play. It’s important for you to know exactly what day trading strategies are all about. There are several factors that these strategies depend on. Some of these factors include money management, time management, education, timing, and consistency. If you lack any of these or have a weakness in one of them, then you will be more likely to not succeed at day trading.

2. The social mood

The social mood affects the rate of your success or failure in day trading. To illustrate more, if you are buying something it means that someone else is selling. In other words, when a person loses money the other person gains this money. Cory Michael at Vantage Point Trading estimated that only 10% are succeeding in gaining money, while the other 90% are losing their money.

Why you'll never succeed in day trading

3. the psychology of being greedy

If it isn’t psychology that would affect your success and failure, what else would it be? Many people tend to day trade with greed, meaning that they invest and buy stocks with all the money they got just to get profit in return. As a result, those people end up losing their money due to the fact that they did not think wisely of the consequences that they might have. In other words, they only thought of the amount of money that they would gain rather than the amount of money that they will lose.

In an article by Dale Gillham in 2018, he mentioned that a person is more likely to be emotionally attached to the little amount of money in hand, not being able to afford losing it. When the psychology of being greedy kicks in, this emotionally attached person risks the money without thinking of the consequences and unintentionally makes the wrong decision.

The winner takes it all

Day trading is very risky as it depends on many factors. There are a lot of reasons why a person might not succeed at it. Most of these reasons depend on factors that are hard to change or to adapt to. The factors that are gained by experience and trial are easy to handle and control, but other factors that depend on the psychological and social elements those are the ones that are difficult to handle. If you win you take it all, but if you lose you will be more like to take the downfall.

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