Hi

I’m looking for 100% honesty about whether day trading actually works. I’ve seen the TikTokers and YouTubers, but I’m calling on real everyday people to share their experiences, no filters, no window dressing, no bullshit.

DOES DAY TRADING ACTUALLY WORK?

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[Christian HarrisParticipant]

Day trading can work, but the truth (at least in my opinion) is that it’s the hardest type of trading, which is why the vast majority of day traders end up losing money.

Why do I say that?

Day trading, as I’ve experienced, can be emotionally draining. It demands unwavering focus and the ability to make decisions under pressure. Sudden market fluctuations can swiftly wipe out profits, adding to the emotional rollercoaster.

There’s also so much noise when trading on small timeframes, making trading momentum extremely hard.

Successful day trading is not a part-time endeavour. It demands full-time dedication and a significant amount of experience to navigate the volatile market conditions.

For those just starting out, I strongly advise beginning with swing trading on 1-day (or higher) timeframes, without using leverage. This strategy minimises the risk of sudden price movements and overnight fees, providing a more stable foundation for your trading journey.

Once you become more comfortable trading a few different types of instruments (or specialising in one), you can consider using a smaller timeframe for quicker profits (and losses).

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[MrPalmer]

Getting anecdotal stories is one thing, but let the stats do the talking:

• 97% of day traders have lost their money within two years
• 80% of day traders quit within two years
• Only 1% of the day traders make a profit
• 1% – 20% of traders earn a profitable margin at the end of the day

Don’t go into it thinking you’re going to make millions.

https://whatsthebigdata.com/day-trading-statistics/

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[Malcolm]

Jees that article makes for an interesting read. “12% of day trading activity accounts for successful players”. I knew it would be difficult but I didn’t realise the numbers were this bleak.

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[Rich]

If you’re extremely knowledgable, experienced, mentally resilient and have a large amount of money to throw at it, then it MIGHT.

If you’re a novice with limited understanding of markets, zero experience trading and just a few hundred dollars, then it WON’T.

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[Rich]

Here is my unvarnished truth from my personal experience:

• Day trading can be a thrill on days where you make significant amounts.
• But just as many days you can see large, confusing and frustrating losses.
• The markets always evolve and there’s more strategies, setups and approaches out there than you can imagine which can be intellectually stimulating.
• The temptation to throw all your time at it can be enticing but you’re often better off working smarter, not harder.
• The most important thing is managing your wallet and minimising losses.

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[Christian HarrisParticipant]

100% agree.

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[Ian]

Well said Rich. No harm in giving it a try but unsuccessful day traders need to understand when to throw in the towel and try a different style of investing.

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[JhS85]

Don’t listen to the haters. There’s cash to be raked in if you’re day trading game is on point.

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[Bruce_Grey]

Can you make a living playing football? If you’re extremely skilled and practiced you can excel, earn millions, and perhaps even play in the Champions League.

Day trading is the same. If you’re at the top of the game sure it works and you can make serious amounts of money. If you’re not, it’s more like playing Sunday league football. You may be an enthusiast and enjoy it but don’t expect to get rich over night.

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[Ian]

Let’s not take aim at Sunday league football players, I don’t want to think my Sundays are wasted at my local football club!

I agree with the sentiment though.

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[Christian HarrisParticipant]

😂😂😂😂😂😂

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[TickTraderTom]

Weighing in here with my opinion stemming from years moving in day trading circles…

Beginners are lured into day trading with dreams of riches that are peddled all over the internet. But most find it overwhelming and lose whatever money they throw at it within 12 months.

Advanced traders who have spent years developing their understanding of the markets and building their own proprietary trading systems can make money from day trading. But even they will be the first to say it’s difficult.

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