Are you under the impression that more trading makes you more money? Break that thought right there. The less you trade, the more money you make- let this sink into your mind so read that sentence again and again until you finally decide to trade less.
Talking about over trading, the biggest mistake one can ever make is to fall in the trap of Intraday trading. You must think it's too big a claim to make but I am challenging the conventional ways of trading the stock market, backing it with logic. That is why I say, sitting on the screen all day is a BIG NO.
Here are 5 reasons why you should stop trading Intraday right now:
High-frequency and quant algorithm traders hurt retail day-traders
Today’s retail day-trader is up against some pretty stiff competition in the form of supercomputers and algorithms that are programmed by “mathwizards” - which obviously makes it more erratic, less predictable & a lot harder for the average retail day-trader to make money.
Leverage in Day Trading is a trap
One of the many reasons why beginners are attracted to day trading is the high margin of leverage provided to them. But, with high leverage comes high brokerage, high amount of tax and to top the mess up, when you trade with such huge leverage, your emotions are amplified which results in great loss.
Day Trading = Day Wasted
Day traders claim that they make profits in just 5 or 10 minutes but that’s only half the truth. The disturbing reality is, they sit with their eyes glued to the screen all day only to end up making peanut-sized profits. The stress, the drying of the eyes and the astonishing loss of time, is it really worth it?
An ultra-stressful experience
What looks like an exciting, high adrenaline life is actually a painful and unhealthy way to live. There is no logic in living a life full of instability. It makes sense to question why a person would choose to be stuck at the screen all day when they can just trade in 15 minutes and build wealth peacefully.
Greater clutter in the charts leads to a tired brain
Day traders refer to the lower time frame data which is highly volatile and creates more noise. That is too much of a download for the human brain — making it difficult to process everything in limited time.
I bet all 5 things have opened your eyes. Now that you know how dangerous day trading is, follow the following points for a successful trading career.
Trade in just 15 minutes a day
Say No to indicators, patterns, graphs and greeks
Don’t predict the market. Follow trends.
Learn Price Action Trading
Adopt a healthy trading mindset
It’s time to make your money work for you. The stock market is a treasure chest of opportunities but only with the right systems and strategies, can people make the most of it.