to scalp a few points out of little positions – particularly when they are trading forex and geared products.
In a year, you will f ind that spread trading operators will take thousands of trades from people looking to eke out profits but at the end of the day, the operators survive on this general churn. Statistics argue that eight out of 10 ‘ day traders’ don’t actually make any money and don’t have the discipline to know their products and systems. They will simply chase whatever index is open in the hope that they can make money. You’ll have more buying power Rossolimos claims: “Every day you’ll start with 100% in cash and so it’ll be easier for you to analyse and calculate how much you’re going to put into each trade. You’ll also know that your capital is not tied up in trades and so you’ll be able to buy however much you want . . .”
I have absolutely no idea what that means but I’m 100% certain that there will never be a situation where you can “buy however much you want”. You’ll grow a great track record quickly! The next claim is:
“With day trading, you’re going to take on more positions in the day compared to if you were trading on a daily or weekly time frame. But this is great because you’ll be able to develop a track record quicker.”
Crass as it may sound, actor Philip Seymour Hoffman died with 70 bags of heroin in his home. But he’s still dead and people won’t be thinking that he has a great track record for very long. It doesn’t matter how many trades you have, you are not trying to impress anybody – you are trying to accumulate long-term wealth. If you are planning to build a track record then go and study to be a stockbroker, fund manager or analyst but don’t mix up a career with a hobby. It can be less risky! This pearl of wisdom really cracked me up though: “The trick with day trading is to keep to strict money management principles so you can control the levels of risk. And make sure your losses are at least half of what your potential winners are. You’ll f ind that day trading can be the most lucrative and exhilarating way to trade.”
Dammit! I knew I was doing something wrong when I kept aiming for those losing trades . . .
Please don’t buy this day trading promo nonsense. If you want to fool around with it in your personal portfolios then by all means but don’t for a moment think it is a route to quick, sustainable wealth.