Reality Of The Situation: “Day Trading: Smart Or Stupid?”

I read an interesting article recently I wanted to shed some light on. The title of the article is “Day trading: Smart Or Stupid?” Well I can can tell you how day trading is based on this past year of me being involved in it. Not only do I day trade. I day trade in penny stock. That’s about as risky as you can get in the stock market I suppose. It’s hard to think of anything else more risky. What I’m about to say may be things you may or may not know. The article I will be referring to can be found at the link below:

https://www.forbes.com/sites/nealegodfrey/2017/07/16/day-trading-smart-or-stupid/?sh=35b9ef041007

“Your odds of success are like those of any other high stakes gambler…”

This statement above I kind of agree with. It’s a close comparison in my opinion but day trading requires less luck and its less random. It’s similar but day trading has better odds but the stakes can be much much higher than gambling.

 “The professionals really know their stuff.  Typically, they are well-established, disciplined traders who are experts in the markets.  The other characteristic is that they invest large sums of money, which they can afford to lose…”

If this is true I am an exception. When I entered the stock market I invested $350. The total amount I put in over the past year is $2300. I’ve been day trading for around a year now and I have profited. In a previous article I wrote I went into detail about day trading. To start day trading $500 is an Ok starting point. $1,000 is a really good starting point once you get a good feel for the market. So it is not true a person needs large sums of money to day trade. I may be in the minority but I’m a prime example.

“These people go it alone.  Just being familiar with stocks and the market is not enough.  They really need to understand technical analysis and have sophisticated tools to understand chart patterns, trading volume and price movements…” 

In my case this is not true. I don’t use any “sophisticated tools.” I search for information myself and I make decisions based of that information. The most advanced thing I use is an search engine.

““The success rate for day traders is estimated to be around only 10%, so … 90% are losing money.”  Cory Michael at Vantage Point Trading is even more pessimistic (or realistic) when he says, “Only 1% of [day] traders really make money.” 

This is the most important part of the article here. I believe this is true. Many experts have said 1% of day traders are the only ones that make money. I don’t think I’m a genius but I very well may be one if only 1% of all day traders make money. Plus I use no tools or advanced equipment to back me up. Everyone reading this keep this in mind. According to experts I’m in the top 1%. Why because I consistently make money — and that’s making money doing day trading and penny stocks which is even more risky especially if you combine the two.

Let it be known just because I do it doesn’t mean anyone can. These are my personal guidelines when day trading

1. Stock I look for have to be 30 cents or lower
2. I tend to hold stocks anywhere from a day to a couple weeks.
3. Believe it or not my prediction rates are incredibly high but my predictions tend to be kind of far out for a day trader. I can not control this. Ideally day traders want to dump stocks in the same day. When need be I hold up to two weeks or so. Why because generally speaking I know I’m correct.
4. I do not day trade everyday. This is key. Penny stocks are penny stocks for a reason. On average they trend downward. If they didn’t they wouldn’t be penny stocks. Understanding this is key to making money in my opinion.

If I day traded everyday I would need to short sell stock. I use Robinhood and they do not allow such methods.

“If someone is making money, someone else is losing money.  You would have to join the crowd as the market is moving up and be smarter than that crowd to get out before they do…”

This is the cold hard truth. I really don’t like the fact that I’m making money at someone else’s expense. That’s why I share almost all my techniques and go out of my way to inform people how to day trade & do penny stocks properly. I hope everyone understands if used correctly the information I’m providing you with can make you a lot of money. I’m not charging anyone for it either; at least not yet.

“…”The reality of a day-trader is a guy who got 2 hours of sleep last night because he was trying to trade the overnight session, now he’s up at 6am trying to day-trade the next session. Many traders get sucked into trying to become a rich day-trader largely because that’s what they think is socially acceptable or “cool.”…”

If that’s the reality these day traders have a hard life. Based on my experience I found prime time in the stock market is from opening until Noon. That’s 2 and 1/2 hours. After that I personally don’t track stocks. In the cases I do track them it’s passively. Meaning I’m busy doing something else and glance at my laptop every now an then.

“You know my advice.  Any system of betting is not designed so that the majority of people can beat it. If you are going to dabble in day trading, set aside some money that you can afford to lose, because chances are, you will…”

This is true. I’ve lost large sums of money this past year. This is to be expected since the environment is high risk high reward. Even so I made more than I lost. As a day trader you must be prepared to take losses. There is NO WAY around it. You will lose a lot of money. The trick is knowing how to minimize the amount of money you lose and maximize the amount of money you gain.

For me personally most of my losses came from reverse stock splits. I deal with penny stocks so it’s a constant plague I’m trying to ward off. Some companies don’t announce ahead of time when they’ll do it either which makes matters even worse.

So there you have it; that’s the truth about day trading. Also to back up what I’m saying I’ll prove my track record of predictions. Just look for yourself. Check out these links below of some of my predictions. My rate of accuracy is pretty insane. just see for yourself.

Hope You listened: Zomedica Stock Jumps 20% & Penny Socks Up In General

REVISITED “PENNY STOCK RECOMMENDATION “ACTINIUM PHARMACEUTICALS (ATNM)””

PENNY STOCK WATCH: INPIXON (INPX) [PART 2]

Penny Stock: SLS Going Up. Did You Take My Advice?

Proven: How To Make $2,000 In One Day