5 Reasons Why I Hate Day Trading So Much

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Why Do I Hate Day Trading So Much?

Tiếng Việt Português

If you’ve read a few posts in this blog, you’ll know that I always advise you not to trade too much during the day (or what called day trading). I always recommend that you only look at the trading screen a few times a day and then turn it off.

Today I will dedicate an entire article to talk about why you should not trade much during the day. If you have this habit, fix it now. And in case you are very successful with your own method of day trading, I congratulate you. You are in an extremely rare minority of success.

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Day trading is the way to success or abyss?

Day trading is very popular among many people. “It’s quite risky, but it will help you get rich quick” – they said. This type of transaction is very attractive to beginners. It makes them feel they can make money quickly. The continuous buying and selling are the best. They seek to buy auto bots to increase the ability to trade even faster. In just a few seconds, they are able to close a transaction (buy-sell) and so on and so forth.

However, once they deposit money for real trading with this method, they quickly realize that they are always under pressure and fatigue (both mentally and physically). They often get stressed out and it’s hard to make good money for long enough.

Day trading is the way to success or abyss?
Day trading is the way to success or abyss?

If you are sticking to this type of trading, you are participating in the game called “quantity is better than quality”. But in countless fields of life, we often find quality better than quantity. Foreign exchange trading is also the same.

My view on trading is that you should keep your balance safe, stay patient, and wait for a good opportunity to invest. Just like me, each month, I only place about 4-5 orders. Or there are months with just only 1 order. Successful traders that I know and meet also have about the same frequency of trading.

Hopefully, with this article, you will once again understand and revise your daily trading habits. Try to be more patient and “prey” on really good opportunities.

I hate the polished and frivolous things of day trading and day trader

What are these things? It is a series of computer screens and charts on your desk. You have to sit all day observing. And from the look of an outsider, your work is very stressful, professional, monumental with phone calls coming in and out, etc.

You describe your work with your friends as complicated and tired. You think that you are proud to be doing such a thing, and so are your friends. Instead, when you say, I only trade about dozens of times a month, it sounds a lot less attractive, doesn’t it?

The illusion of “day trader” is what attracts many people. They want to introduce themselves as a day trader. It is the illusion of a young, wealthy guy or girl, earning billions easily, driving shiny cars such as BMW or Audi, etc. This is not very realistic.

The polished and frivolous things of day trading and day trader
The polished and frivolous things of day trading and day trader

I will take you to the reality of a day trader because I myself was once. You can only sleep for about 2-3 hours every night. You try to trade late at night and wake up at 4 am to trade the next session.

A lot of traders are stuck in this situation because they think that they will receive a lot of admiration from others. They will be able to get rich quick. They stick to the computer screen day and night because they do not want to miss any chance. Trust me, this is not a healthy way to trade, and obviously not a good way to learn trading either.

Top-down approach

There are too many forums and websites out there cheering on continuous trading strategies. They mostly aim at people who are new to forex or are exploring the first steps. In my opinion, day trading is only for those who really have a lot of experience, not for novices.

Think of trading like building a house. You need to build a solid foundation first, then gradually go to smaller steps such as decorating, buying furniture, and so on.

As a trader, you need to well understand higher time frames which are clear and “reputable” before trading at lower time frames. I was initially like the majority, doing the opposite. I started to trade with very low time frame candlesticks in which the highest was H1. And like most people, I lost (a lot) money.

The broker always wants and recommends day trading

Another reason I hate day trading is that they are financially beneficial for brokers. The more customers trade, the more brokerage fee they earn. So what you often hear is to trade a lot and make lots of money.

Day(-much)-trading people help brokers make a lot of money. So they have not heard much about the dangers or risks of continuous trading.

The broker always wants and recommends day trading
The broker always wants and recommends day trading

Be careful about when choosing forex trading platforms and forex brokers. The more you trade, the more money “you give” your broker. And when really good opportunities come, you will not have much money left to risk.

Stop-loss hunters love day traders

Day traders always set their stop-loss lower than others. They want to “hit and run”. They want to take small profits but many times, and so they set the stop-loss low.

Big boys can influence the market in a short span of time. And they are genuine stop-loss hunters. How many times have you been in a situation where the price just hit your stop-loss point, it reverses direction. You silently regret if you set a higher stop-loss, everything would be fine.

The more you conduct day trading, the more likely you will encounter these big boys as stop-loss hunters.

In conclusion

Day trading is like saying “more is better.” It is almost like gambling. To me, “less is more”. I choose to trade on large time frames (H1 or higher). I rarely use H1 and do not recommend using this candle. Just focus on H4 and D1. I choose to trade less but with quality, rather than trading a lot within a day. It is no different from “suiciding”.

Let’s work smarter, not necessarily harder.

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