Why day trading is a bad idea for those traders who think it’s an easy get rich quick scheme. Have you ever decided to do something and then start to think, “man, maybe this is a bad idea”?
Like a house renovation where you quickly realize the projects never end and the cost only increases. Or the time you decided to volunteer and coach Johnny’s little league team only to head up fundraisers and deal with parents daily.
Both awesome ideas were implemented with great intention but also had downfalls along the way. Can you imagine what the final results were though? Feelings of satisfaction, memories made, and a sense of accomplishment. Makes the endeavors worth it.
Every idea has positives and negatives. Ideas have requirements to achieve success and consequences for getting there. Day trading is no exception.
You may find yourself asking why day trading is a bad idea when it also seems possible.
Learning to trade stocks can be a long, time-consuming journey filled with emotional highs and lows, successes and failures. It is difficult, costly, requires extreme effort, and is a lot of work!
The process to learn and become a successful trader may make you rethink things…until you reap the positive results!
Day Trading is Difficult
If you don’t prefer difficult, if you can’t stand a challenge, then maybe day trading is a bad idea?
If day trading was easy to do, you would see many successful day traders out there making it their full-time job. You would know a plethora of thriving individual investors in your family and friend circles talking about trading activities like its common knowledge.
According to the book “Day Trade Like a Millionaire”, written by Maurice Kenny, 90% of day traders fail. They quit. They give up. So it is fair to say that day trading is difficult.
Day trading stocks isn’t for the lazy. It is a path laden with challenges.
Even if you exercise the discipline, the effort, and invest your time and finances into the task, you will still meet up with numerous frustrations. The volatile stock market, personal bad habits, and lack of drive or ambition all can detour your good intentions.
The biggest reality is losing money. You will lose money while learning to day trade. Period.
Even the best of ideas require dedication through difficulty. Your goal, your drive to succeed and find financial freedom, must be bigger than the obstacles to conquer the challenges and become the profitable day trader you desire to be.
Day Trading Is a Costly Investment
If financial risks and using your own money to invest in yourself seems a bit much or taking up the scarce, extra time you have to learn isn’t attractive to you, then maybe day trading is a bad idea?
Day trading requires financial resources for equipment, education, coaching, and capital. It also requires an extensive amount of time to learn and practice.
To begin day trading, you will need to invest in technical equipment such as a good computer, laptop, cell phone, and reliable internet connectivity. You will need to secure a broker and have a trading platform, such as TD Ameritrade, Think or Swim, TastyWorks, and Trading View.
This may be time-consuming to figure out and take monetary resources, but you cannot trade without proper equipment. It would be like a person learning to play piano and not having one to practice on. Doesn’t work well.
You will also need to invest in education and dedicate time to learning. There are tons of resources available regarding stock trading both off and online. However, buyer beware!
There are books and then great books. There is super awesome YouTube content on trading stocks available and then some misinformation or even subjects you don’t need to know as a beginner.
There is also a big difference between buying courses that provide you with trading signals and indicators only, and courses that actually teach you how to trade.
Do your research on the education you invest in before purchasing. Look at comments, reviews, and testimonials and ask questions before buying content and courses. Find the right fit for the type of trader you desire to be: day trader (same day trades), swing trader (short term trades), or long-term investments.
Once you have your education lined up, you need to devote time to learning your strategy and practicing it!
Paper trading stocks and also utilizing a platform’s replay/on-demand features can help new traders perfect their entries and exits and also judge the effectiveness of their trading tools and plan.
Taking time to practice will help you grow and improve your process. The vast majority of day traders keep up with this routine of practice to stay sharp and test out new information and strategies.
Investing in coaching or mentoring is an expense that will pay off. When kids learn how to play any sport, they are coached. When we learn subjects in school, we are taught by a teacher.
One-on-one and group coaching programs exist and are available to aspiring traders. Having a professional mentor that can guide, correct, and provide advice will be beneficial to your development. It could be the difference between the fast track and slow track to success.
Again, do your research and locate a good trading coach or team of individuals that have the expertise, a proven successful past performance, good student feedback, and time to devote to your growth and success.
To trade in a live financial market, you will need money or capital. This should be extra money you are willing to risk while learning. You also need funds for trading fees which are transaction costs associated with placing trades. Take also into consideration capital gains tax.
Trading stocks carries financial risks but it can also be a path to financial freedom.
If you don’t have the financial means for equipment/education or time to devote to learning, you might think that day trading is an awful idea. Again, its outlook.
These are all short-term expenses that will have long-term payoffs. Compare it to the cost of college and it doesn’t seem so expensive!
You can slowly buy equipment and the resources you need, and you can learn at your own pace. Your schedule is up to you. Be realistic with yourself and make a plan to achieve the goal.
Day Trading Takes Effort
If you like the idea of accomplishment but are known to lack effort, then maybe day trading is a bad idea?
Aspiring traders may think producing successful day trading results is only a matter of learning a process and having the necessary equipment. It is to an extent. Few people realize just how much physical and emotional energy you will need to devote to learning the process.
We are not talking about a level of average energy here. We are talking about a level up…an extraordinary type of effort. Because let’s face it, every project starts with an idea and has to be backed up with effort.
Your Effort Is a Big Deal
Day trading may be a terrible idea if you don’t commit to giving 100%. You cannot succeed without it!
Trying to become a professional day trader that desires financial freedom doesn’t start with a lazy mindset. Determination, perseverance, and putting forth your best to achieve your goal are critical. If you don’t bring effort, are you really even trying?
You must be dedicated and put in the necessary time to learn, practice, study, and journal. You must be willing to put in the work even when you don’t feel like it and be committed to your future results.
Most traders, there are exceptions, do not become consistently profitable for a few months or even a few years. This means they come face to face with disappointment repeatedly and keep putting in the necessary effort to learn, grow, and improve.
If you want to learn how to day trade stocks, you must ooze with effort. If you have been trying to day trade stocks for a while and are dissatisfied with your progress, ask yourself, are you devoting enough time and energy to get the results you desire?
It all starts with effort.
The effort you put in reflects the results you get out. Bring it!
Why Day Trading Is a Bad Idea: Day Trading Is Work!
If the idea of hard work with possible slow results is repulsive to you, then maybe day trading is a bad idea?
No way around it, day trading is hard work initially.
Many people have this dream of making easy money, tapping quickly into the income range of six figures, and making more money with less applied time. It is attractive for sure!
Yes! You Can Make Money Day Trading
Yes, you can develop a flexible schedule. But all of that takes time. It does not happen overnight for most.
Learning to day trade is like opening and running a new business initially. It is like investing your time and money and pursuing a college degree. It takes more than a year for a business to start thriving. It takes more than a year for a student to get a college degree. Why would you think learning to day trade would be any different?
It takes discipline, emotional strength, financial resources, and loads of time before you may end up making money trading the markets. The reality is, day trading is work!
You have to put in the work to get the results! Even when you don’t feel like it. There is no way around it.
If you desire to become a professional day trader, make a plan and dedicate yourself to putting in the work, the hours, and the effort to become a successful day trader. It is possible!
Summary: Why Day Trading Is a Bad Idea
The vast majority of beginning day traders lose money, struggle with retaining sufficient capital, battle psychological obstacles, and even stop trading or take a break before they evolve into professional, successful day traders. It is in your best interest to stay committed to your financial goals and exercise money management.
Learning to trade stocks is an investment that will require an extreme amount of effort and be challenging. Every beginner needs money to start trading and time to learn and be successful. When you start trading, you naturally may feel overwhelmed and start thinking the task was a poor idea.
Take heart though for even the worst of ideas can end up being the best!
If you focus too much on the challenges of the journey and give up, you may end up missing the best part…the end result!
Resources to Check Out
Check out this article!3 Reasons You Need a Coach
Watch this YouTube video:Don’t Day Trade Daily – 3 Harsh Reasons Why by Maurice Kenny
To Learn More
Maurice Kenny has helped over 600 people become financially free through one-on-one coaching, mentorship, and options trading strategy. Many of these new traders are now full-time traders, and they all started by watching his 1-hr webinar.
Feel free to check out other FREE educational resources to help guide you as you begin your new journey to financial freedom.
Also, download a (FREE E-BOOK) by Maurice Kenny, “DAY TRADE LIKE A MILLIONAIRE.”