You may have come across day trading via someone on the internet, or maybe it was me… or maybe it was a commercial you saw on TV.
SIKE. Nobody watches TV anymore lol.
But on a serious note, you probably came across day trading due to social media. That’s very understandable! Now, depending on where on social media you saw it, it can easily alter your perspective on what you think trading is. If you see it from someone in a MLM, you may think it’s all about the cars, traveling the world, signing 3 people up who signs 3 more people up, and more. If you hear it from me, I’m going to try and paint the picture for you as clear as possible.
Yes, if successful, day trading can be the most lucrative job in the world in terms of money.
Yes, it’s possible to get very rich from day trading.
Yes, you can travel to Bora Bora and as long as you have your laptop or iPhone, you can trade.
That is all true.
But the issue is, people ONLY focus on that possibility. They never focus on the others which are:
Day trading can potentially be the most exhausting job in the world. Not even in terms of staying up at night because you don’t have to. Exhausting in the sense of continually losing.
Yes, it’s possible you can lose all of your investment from day trading if you’re not careful.
Yes, you can travel to Bora Bora and…. lose more money.
My goal is to paint trading in a realistic light! I think anyone who wants to try day trading should! Buy a few books from Amazon, learn for free on YouTube or for free on my Free Learning Program on The Swag Academy, or buy a program, or buy my program, or start a demo account and go through trial and error! Try it out! If you’re interested, try. But only try with money you’re comfortable with losing because you can lose all of your money like THAT. And lastly, if you’re going to think of every good that comes with day trading, you must think of every bad that comes with it as well; and weigh out both options.
Here are 5 factors to consider before day trading:
1. Is this really what you want to do?
Are you sure you want to learn? People think they can just learn everything in 3 months and their life is changed. Yes, you probably can learn all the definitions about technical analysis in a few short months but that is just the tip of the iceberg and there’s SO MUCH more to learn. Not only learn, but actually apply… in the real market… in real-time. That’s a different story! Make sure trading is something you’re really interested in. It’s not as scary as I’m making it seem as you can set the amount you’re prepared to lose, you can control your risk, and set up an automated system (Stop-Loss/Take-Profit) to get you out of a trade even if you’re not nearby, if you’re ever making a certain amount or losing a certain amount. So breathe. It’s not as scary as I’m making it seem. I’m just doing my due diligence as an educator and giving you the proper disclaimers because I don’t want anyone coming into this blind. Most people think this is a 3 month process when it takes way longer than that. They get upset when they realize it’s like playing a sport. It took you YEARS to get good at basketball. And even then, there was no guarantee that you were making Varsity unless you continually practiced. This market is similar. So make sure this is what you really want to do.
2. How much money can you lose and still maintain your way of living?
We never want to lose money in the market but there is a saying that if you put money into the market, just imagine it gone. Not because you’re going to LOSE IT… but get it out of your mind. You took it out of your bank account so technically it’s “gone” and your account is a lot smaller than what it was when the money was in there; and now you’re putting it into a trade. So just imagine it gone. Any type of profit is GREAT! Because you got a return on your investment. But figure out how much money you’d be okay with “trying” day trading out with. Make sure it’s not an amount that will alter your way of living if lost.
3. What is my current situation?
If your current financial situation is bad, you may want to reconsider day trading. Day trading is not a last resort job. There’s a potential that you can lose money. You can’t lose money going to a PHYSICAL job. You get a check every 2 weeks. But day trading? You can lose. So make sure your current situation at home is okay. Day Trading can be a MOTIVATOR and you can want to study due to your situation. You can grow a passion for day trading during a hard time, but in no way-shape-or form should you try and rely on day trading as an income while struggling. The markets are EMOTION-driven. So trading when you HAVE to pay rent is not a good sign. So make sure you’re in a good financial situation before trading.
Those are 3 major things I would consider being day trading. If you know in your heart of hearts that this is exactly what I want to do… do it. Don’t let ANYONE tell you otherwise. As long as you know the risks associated with it and the pros and cons, you are grown enough to make your own decision. Besides, the statistics of being a day trader are much better than making it to the NBA. Yet every single person will tell you to chase your dreams when it comes to the NBA… but when it comes to day trading, nobody is supportive of you doing that. It’s because nobody watches day traders so it’s not appealing to parents. Parents watch the NBA so they will always believe in their son. Curry did it, why can’t you? I’ll tell you why you can’t. But not on this post lol. Maybe the next one. Anyways, as I was saying, if this is what you want to do, go for it.
If you set aside a certain amount to try and trade with after trading on a demo account, and you’re comfortable if you were to lose that money, great.
And if you assess your current financial and mental situation and you feel you’re in a good enough spot to start trading with money you can afford to lose, GO. AHEAD.
I would just consider those questions when you’re factoring in, if you want to day trade or not. Day trading is fun!! But it’s always a rollercoaster! Especially in your first year. So, just ask yourself some questions and see if you’re fit for the journey. If so, good luck and have fun! Remember risk management. You may not know that now but you will in a few weeks!