Why day trading is a bad idea
It is not!!
Actually, the correct question is:
When is day trading a bad idea?
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OR
How much of a day trading is a bad idea?
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Well @maddy_Des , can u kindly explain about when is day trading a bad idea and how much of day trading is an bad idea.
Because more than 95% people (I think 99%) lose money. That’s why. And stock market is not a gambling machine.
When:
When you are novice.
When you already are in huge drawdown.
When you are convinced that daytrading is only loss making.
When you are yet to be profitable considerably and have no other source of income,
When your capital is actually loan money.
When you are searching for some “no loss” strategy, indicator, system etc.
When you rely on tips, guts etc.
When you are convinced that Market always reverse after your SL is hit.
When you are convinced of all the conspiracy theories - Front running, Stop loss hunting, Broker selling data etc.
When you dream of being so skillful that you will never end a day with a loss. “I must always make money, no loss ever!!”
How Much
If your total trades are greater than 3-4 trades per day per scrip (And you are not a scalper!)
If you are losing more than 2% of your capital per trade.
If you are losing more than 5% per day.
If you take trades with adverse RR ratio.
In short if you over trade.
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