The new middle-class gambling addicts: how day trading is ruining lives

New traders daytrade because they have strong fears of failing and of losing money. Possibly also of letting significant others down. They believe that daytrading is less risky because you are just using very small positions for very short periods of time and you never hold overnight or across a weekend.

They also believe that they have conquered fear and trade emotionlessly because they use charts and often because they let various indicators signal entries for them. And of course charts and indicators have no emotions.

No new trader should be daytrading until they can trade profitably on a time-frame of several days.
 
"No losses yet" :D:D:D

Most people in this forum would be much better suited to work as standup comedians.

stochastix said:
Yes, mostly bear calls on the vix, buying ootm to help pay for margin.. had a close call when the omnicron variant hit but managed to adjust.. no losses yet.. I'm not doing a whole lot more risk until I implement the perfect hedging and minimize the tail risk
More...
 
The kinda stuff I read on social media everyday. SMH!
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The very first rule of investing is:

DO NOT INVEST MONEY THAT YOU CANNOT
AFFORD TO LOSE.

That rule applies to mutual funds or whatever
you put your money in. Most people do not
know this rule and they certainly don't follow
it and that is why they keep going broke.

When I hear of someone losing it all, where
they say that they put all their money into
this or that, or gave their whole life savings
to the likes of Bernie Made-Off, it just gives
me a laugh. SEE THE FIRST RULE.

People have their reasons for getting into
day trading. Most of them are grasping at
straws trying to replace lost income and
they do not have realistic expectations.

They want something that will make them
money right away, but they will not take
time to read a book about trading, FOREX,
investing, stock market, or anything else.
They open a random account somewhere,
pick random stocks, put ALL their money
in there, and then they wonder what went
wrong when it goes sideways.

If they took the time to learn the basics,
they would know that day trading is the
easiest money in the world.
 
Risk of Ruin Calculator, account size won't save you from poor profit factor or low win%.
You could net profit $20,000 in 1,000 trades with nice equity curve, average drawdown and still lose everything. Beware if your average loss is four times greater than the average trade net profit.
 
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