9 Biggest Lies About Day Trading...

Recently, there's been a lot of myths regarding day trading. I've been hearing all sorts of nonsense. And in this video, I basically want to debunk majority of the ones that I've heard. So with that being said, let's dive right into it. Myth number one, you have to day trade every single day. Now, this is very, very false. This is extremely wrong. I've been day trading for over 10 years and honestly, there's times I don't take a single trade for weeks, for days and so on. The reason for that is I wait for the market to present an opportunity and I execute on the opportunity. So we as traders, we trade opportunity. We don't trade just to trade, right? And a lot of unprofitable traders, they are just putting on trades to put on trades. So you don't have to trade every single day, guys. You take what the market gives you and you execute upon that. Myth number two is you need a lot of money to start day trading or trading in general. That's also false because I've seen traders with a thousand dollars, two thousand dollars that have done very, very well for themselves. It has taken time. I don't want to give you guys a false notion that you're going to start with a thousand or two thousand dollars and you will become millionaires. No, that is not what I'm saying. What I'm saying is you can open a day trading account tomorrow with a couple of hundred or thousand dollars and get started. Now, if you don't want to put money in, you can also start a paper trading account, meaning you can trade markets with fake money just to get experience, just to get, you know, things going and understanding the market. So no, I don't believe you need a lot of money to make money. Yes, if you have more money, your returns will be bigger, your gains will be bigger, but doesn't mean you won't be profitable or you won't make money. This one's my favorite. A holy grail strategy. I always hear traders or people saying, what is the secret strategy? What is the secret indicator? What's the secret one thing I need to become profitable? And I'm like, I don't know where people hear this stuff from or who tells them this nonsense. But there is no such thing as a secret strategy. There's no such thing as like a secret, secret holy grail anything. It just doesn't exist. The markets are ever changing. There's new opportunities, new approaches to the market. And our job as retail traders is to be able to recognize those opportunities and execute on that. There's no such thing as a special indicator. There's no such thing as a special strategy that will consistently work and work in the markets all the time and make you money. Like, don't even look for that. And if you're looking for that, I promise you, looking for the wrong thing, that is not going to get you to a pretty profitability point of view. I have another video breaking down what you as a beginner should look for. I'm going to put it up somewhere here, check it out. But for now, just, just don't focus on looking for a single strategy. So this myth carries from my last myth, which is indicators are nonsense. So indicators are great tools. I, I see traders, like, even when I first started trading, the first thing I would do is I would go add so many indicators to my charts and be like, well, this indicator is going to tell me this, that indicator is going to tell me this and it'll give me the perfect entry and exit. Right way, right. And guys, let me tell you, like, it just doesn't exist. The problem with indicators is that they are lagging indications of the market. Like, indicators showcase their movements after price has formulated, right? So think about that for a second. Price needs to formulate and then indicators start moving as the way they will be according to price. So indicators, you can look them, look at them as cool training wheels. But indicators are not like a forward moving indication of what will happen. It does show you what has happened and you can kind of gauge off that a little bit. But don't look for indicators as, as, like the main thing to help you identify where to buy, where to sell and just get the perfect entry and exit signals. Because once again, that doesn't exist. And this one's actually my favorite. I, I hear traders talk about this all the time. If I had a better laptop, if I had like six screens, if I had a better this, I would become profitable. If you can't become profitable on a single laptop in one screen, why do you think having four screens will make you more profitable? Like, yes, having more screens somewhat could be beneficial, but I don't think as a trader you need more than two screens. And I think two screens are enough. But once again, if you have one screen, like one display monitor, and you're trading off that, in my opinion, that is enough for you to make money and get started. Right? Once you get make money and once you get started, yes, you can add another screen, but that is not something that holds you back from being profitable. And I see traders doing it all the time. Well, I need to get the newest computer, I need to get the best screens. Once I have this, once I have that, I'll make money. No, if you can't make money with your current, you know, environment settings and things you have, you won't automatically make more money with a better computer, more screens. Next myth is that you need a college degree. I've heard this a few times that, hey, do I need a college degree? I can't get start, I can't, you know, get started in trading. And you actually don't need a college degree. You can go right now, you can go open up a trading account, get started legitimately in the next five minutes. Which sounds great, but that's also one downfall of day trading, right? Because of how easily accessible it is. Right. But ultimately you don't need a college degree, you don't need any sorts of education in that department or any licenses to go and day trade for yourself. You can open an account in less than five minutes and get started. So this myth goes back to what I was saying before that you need a lot of money. And I hear traders go into like, hey, if I have more money, I'll be able to make, you know, I'll actually be able to make money. I have 500, and with $500, I can't make money at all. Or with a thousand dollars, I can't make money at all. Yes, with $1,000 or $500, you maybe won't make as much as money with someone that has 10, 20, 30, 40,000. Right. But you can make money. And one way to offset that is instead of looking at your dollar gains of how much you're making on a dollar by dollar basis, look at it from percent gains or look at it from our multiple point of view. Meaning how should I look at my risk? How should I look at my trades from a risk perspective or a percentage view? Because think about it. So you can make 10% on $1,000. That's, that's $100, right? Doesn't sound a lot on a thousand dollar account. Now imagine you make 10% on a hundred thousand dollars account. Now you made $10,000. Same percentage, just different account sizes. But once again, if you have a smaller account, don't say I'm not profitable because I have a smaller account. No, focus on the percentage gains and focus on the R multiple instead of the dollar value. This one is actually the craziest one. I hear all the time that trading is easy. You go to 90% of YouTube videos, you go to, 90% of things in social media. All you hear is, trading is easy. Guys, I'll be the first to tell you, trading is hard. Trading is very difficult. If you are not ready to go through hell, basically right, just stop day trading. Just stop. I will be the first to tell you. Just quit, leave, stop. Why? Because day trading is so, so difficult. Because not only are you competing with the market, you're competing with something bigger than the market, and that's yourself. You're fighting with your inner demons. All the inner problems you have, they show out in day trading. When you are trading, you are putting positions on. You start realizing all your flaws, all your emotional battles and struggles. It all starts showing up on the screen, on your P. L and in your trading. And I've seen it happen to so many traders. Will they put on some positions and the moment they get into trades, they become an emotional wreck. So trading is not easy. Trading is extremely difficult. And if you are looking to get started or you are started, just make sure you put that in your head instead of thinking, oh, this is going to be a walk in the park. This guy said to buy this at this point and sell at that point with the special indicator. Doesn't exist. I'm sorry to break it to you. Does not exist. So focus on the hardcore truth of trading and that it is hard. And if anyone tells you it's easy, just. Just. Just stop watching them. Just, just look away. So this myth has happened a lot in 20, 20, 20, 21, 2020, 22, and even a little bit now. We saw an influx of retail traders into the market, and all we see is what goes down will go up. So you see some names like Peloton, right? Peloton was at $160. You had Zoom. You had a lot of other names such as Affirm, going up at massive valuations, and people keep averaging down. Why? Because if I buy more at this price, it's cheaper, it's better than what it was before. And I'm like, no, that's not how it works. Yes, you hear that the stock market eventually goes up, but that's the overall market. That's the S&P 500. That's not individual stocks. There's so many stocks that have went up at such a high valuation and then never get back there again. Look at GoPro, for example, right? So because you get into a stock and it is now cheaper than where you got in before, don't say it will go up. Don't say it is cheaper. Now that's not the case. And a lot of new traders do that and they just burn their money by doubling down and reinvesting into some names. And it's like, yes, if you're gonna do that, do that with good names, solid companies, right? You have, let's say Apple, you have Amazon, you have maybe Tesla, depending on what you consider solid or not. I don't want to kind of share what I think is solid or not, but with that it's different. But overall, just be careful on buying things over and over again because they're now cheaper than where you got in. So just wanted to debunk all of these myths. I know I hear about them so often and they're just not real. And I just want to share this with you, with you guys, because I hate when I hear some of these myths about day trading because I have been doing it for a really long time. So I just wanted to share that with you guys. And with that being said, let me know what myths you guys have heard. What do you guys think about what I've shared? And if you guys like the video, please give it a thumbs up and I will see you guys on the next video.