A good money that you earned in 10 trades would be lost in one single bad trade. It may go to even worse. The amount of risk is unlimited, it can wipe out your entire trading account. On the other side you can double the money but the probability is very less
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In trading unlike other careers the results are instant - good or bad, unlike in other walks of life where it is delayed. I can gamble with anything in my life, from my education to work to my relationships, but the results of it are delayed. In trading since the results are instant, people call it gambling.
What you need to understand though is that like everything you do in life, you need special skills to be on the top, the only difference is that in trading only the people who are on the top can survive while the others perish. These special skills, some of it what you are born with, and most of it is what you learn over time based on your hardwork and experience.
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SHORT AND VERY IMPORATANT ANSWER ... DAY TRADING CRITISISED JUST BECAUSE "LACK OF PROPER KNOWLEDGE" AND " TRADING DECIPLINE".......
EVERYTHING COVERD IN THIS ANSWER IF U LIKE TO KNOW MORE THAN ASK
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Day Trading is criticized because of many unsuccessful day traders, I believe. I have known few of my friends who were engaged in day trading finally wound up losing a lots of money.
Even I have been squeezed hard in my early stages, almost 50k.
I believe if proper discipline is adhered and with proper tools like EMA, RSI and Nifty index, one could scalp sufficient money in day trading and be successful in course of time. The key where to enter and exit is important since each moment in day trading is very unique.
One should rather focus of momentum and volatility of stocks rather than sticking to patterns on historical base, particularly for day trading. Example, last 10 months say ABC stock has fallen on the day next to expiry. The same may not happen this month. It is purely based current market sensitivity.
Many people especially beginners do not realize these and does day trading blindly with some kind of intuition. Later once they are hit (losing money), they spread messages that day trading is dangerous.
Day trading also requires good amount of dedication, which many may not be able to spare.
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Stocks move but never in straight lines & same direction continuously. During intra, some professional trading institutions decide to take out all the stops at an important support/resistance area. If a stock is bullish, one does not want the majority of market participants to be sitting with Long positions. So, a few whipsaws will take out the day traders. Hence, it is difficult to make money in day trading / short term trading.
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here survival is very important one can blow his account away in few seconds,minutes,hours,days,months & years ...but need to mention earning potential is very high....if generally a person wants to start a business he needs to apply license,acquire office,man power etc.but here its easy to enter and also easy to exit...todays environment is very competitive in education ,jobs,marriage. so one one should opt for high paying job or should enter some selective businesses such as trading,renting properties,other non capital intensive business....only in markets competing is good thing .when we all compete and buy a scrip it shoots up and when we sell it fall down.try to make dynamic numbers into standard numbers for example set aside some part of profits earned to invest in other safe financial areas like FD,insurance etc,which might yield lower returns but safe...all the best:)winners become businessman losers become criticizers.
Many Reasons for the Same i would Like to point Few based on my experience
- In Our country Believe in MAGIC NOT IN LOGIC , so you can find anyone talking sense getting criticized and if the so called babas or sadhus selling magics and they are appreciated .
- The Results are instant you get a slap on your face immediately for doing wrong which is against human character and no one likes the same
- Unbrideled wants and wishes , Since the Hard work Required is very high as compared some other parts of the life . People come into stock market thinking its a timepaas thing and can become crorepati in few trades but go out otherwise
- Not Believing in the Laid down Rules by the master Traders - there are many rules like managing risk , risking only 1% of a portfolio in a day but people do the opposite and get vanished in seconds
- Too Much Belief in the Tipsters who don't Know any thing about market they just know 1 thing maximum lots . With 1 Lakh Captial They ( Client) are asked to Buy 20 Lots of any Stock with very High Lotsize and one wrong trade takes them out of the market .
- Too Much Leverage Provided Brokerages So that the client can buy maximum lots an the brokerage Houses will make more money EOD even if client is loosing they are making there profits.
- People Dont want spend time to Learn , they Just want one magic tip that will change there life forever
Last But Not Least when you don't get grapes its obvious they will taste SOUR
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that can happen only when u risk 1% on good trades and 10% on one bad trade, which is why money management plays an important role.
practically speaking, when we get the good trade we would exit early before stock attains actual high, but on bad trade, we would marry with the stock with the hope the stock will bounce back which results more loss than anticipated. Yes ofcourse money management with strict stop loss will save us irrespective of day,swing,long term trade.
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sorry, but i do not agree with u. u said - “practically speaking,…”. IMO, not all do it. its more a matter of how well we understand probabilities and risk reward. if what u said was so practical, then we wouldn’t have had even a single winner on 60 day challenge.
The point is, im not criticizing the day trading, i was trying to find out the reason why it is being criticized. Yes we have the winners in 60 days challenge but do we know, how many of them day traders? there can be swingers who made good profit. Apart from that, we have seen the one side, on the other side there must be plenty of people who was not able to make on 60-days challenge, probably more day traders since it involved higher risk.
ok, i get it…
if you have a day job, then forget day trading 
awesome comment…esp 1st paragraph.
Nithin , Your views are valid. Great.
all clear
I understood your point fully. Thanks
Good one Nitesh…
Great positive attitude!