This is not a euphemism, but rather a truth injector and a wake up call for those of you wanting to consider a career in the day to day trading environment. The truth of the matter is that you will not survive a single day in day trading if you have minimal market experience. It really is like shooting lions from a distance and having someone give you a small fruit knife to hunt them down with your bear hands. You’ll end up as Simba’s lunch and what’s worse, you’ll also find yourself at the mercy of her cubs. Don’t try to trade on the day, not now, and for the most part, not ever.
Yes, I can hear the number of traders and companies that are now going to deploy financial data, earnings projections, and bulging bank accounts in defense of this trading option, but I know. In fact, I know more than anyone how most companies trade on their trading day and what kind of statistics are out there for novice traders to look at and just be terrified. Yes, it might be very well and elegant to say that we have been making millions trading daily but who are ‘we’ in the first place?
These are big financial companies with more resources than you can use, and this means they can analyze financial data, price patterns, forecast models and look at their huge 70-inch plasma screens and literally spot the pronounced deviations in the market. for them to make a decision, close a deal, enter the trade and be out before the sun has time to breathe. This is how they make money, and on a typical day, it would be something like 40,000 stop losses and 120,000 positive pips. Now, if you were a lone shopkeeper working from home in your pajamas, how much of that can you take before your bones turn to dust? Day trading is not a joke and this is the realism in me talking now. It’s hard, harder than you thought possible because the market momentum just moved up a notch at a volume you weren’t designed to handle.
You can’t expect to compete with those companies and merchants that are doing this right now. Day traders who are individuals doing this are not traders they are the elite of the elite, they have been doing this for a long time and they are naturally gifted in any market they are faced with. This is more true for the Forex market, because short-term movements are sometimes so hard to predict and you would need to invest half a coin to see why it would be there in the first place. Don’t make the same mistake as other traders and think of day trading as your kryptonite and normal trade routes as your phone booth.