/biz/ - Business & Finance

[Anonymous No.18786955]

Okay can somebody please explain to me what the point of daytrading is?

I mean, I get the benefit of making quick short term money, but I hear about how "dangerous" it is, yet I don't understand why.
I mean, I get you can lose money just as quickly as you could earn it, but isn't that only if you sell after seeing your losses? If you just keep holding until you have made a profit, even if it's the next day/week, where does the danger come from? Wouldn't you literally have to invest at a stocks highest peak to truly lose your money completely?

>Invest in a stock while day trading
>Goes in the red
>Just wait a few days/weeks/months for it to be green again
I feel like I'm missing a critical piece of the puzzle here

[Anonymous No.18787003]

>>18786955
nam a s'tahT

[Anonymous No.18787055]

>>18786955
Over of 90% of day traders lose. It's not viable. It simply lures gamblers with no self control. The few that win big have insider information

[Anonymous No.18787084]

that looks like a cross between michael jackson and that iranian girl that shot up youtube HQ

[Anonymous No.18787131]

>>18787084

[Anonymous No.18787138]

>>18786955
you can buy almost the peak, fail to sell when it dips below that same level, and then it never goes back to that level for a year and you just underperformed the s&p by a lot

[Anonymous No.18787147]

>>18786955
>Just wait a few days/weeks/months for it to be green again

Most of these stocks don't go green again, so you turn into a bag holder who shills on Stocktwits to try and save your bad trade. Eventually, you might cut losses, but this will keep happening over and over again until your account is finally destroyed.

[Anonymous No.18787178]

>>18787147
just daytrade SPY/QQQ or leveraged shit based on them and you literally cant lose

[Anonymous No.18787181]

>>18786955
I-IS THAT...... A WOMAN........ WITH BIG TITS....... WEARING A SUPER MARIO SHIRT.............. WITH JAPANESE LETTERING?????????? AAAAAAAAAAARRRRRRGGGGGGGGGHHHHHHHHHHHHHHHHHHHHHHHH

[Anonymous No.18787203]

>>18787084
Damn beat me to it. Was gonna say someone photoshopped MJ's face to a thot body

[Anonymous No.18787206]

>>18787178
This is exactly where I'm confused. How could you lose money on QQQ when you have all the time in the world to recoup losses

[Anonymous No.18787237]

>>18787181

No. That's a man.

[Anonymous No.18787243]

Who or where are the legendary daytraders of history?

[Anonymous No.18787274]

>>18787206
because like the other guy said some people are degenerate gamblers that go for meme stocks but the whole 90% of daytraders lose shit is a complete meme

[Anonymous No.18787278]

>>18786955
Day trading is a meme and has been since the late 90's tech bubble popped

You hear so much about it because people make money selling day trading courses and shit, not because they actually make money day trading lmao

[Anonymous No.18787359]

>>18787206
if you only ever go long on something that's pretty much guaranteed to go up long term then yeah you pretty much won't lose money, but the question is can you gain more than people who just put $100 in a week and hold for 35 years

[Anonymous No.18787461]

>>18787359
So why would anybody do otherwise? Why sell for the sake of a daytrade, when you could hold and turn it into a swing trade?

[Anonymous No.18787622]

>>18786955
Damn, how low is your IQ? You must be a literal retarded brainlet. Did mommy give you permission to browse on 4chan?

[Anonymous No.18787823]

>>18787181
>>18786955
Simply male.

[Anonymous No.18788180]

>>18787003
Look up shiftymine

[Anonymous No.18788393]

>>18786955
Daytraders/bitmex users are the trading equivalent of coomers

[Anonymous No.18788515]

>>18788393
Pmuch. Most daytraders are trading/looking at charts all day and completely forgetting that if they don't sell they have no loss. A lot would rather sell for a loss and immediately re open a position with leverage rather then wait a few fucking days or even a week to sell for a profit. Everyone is obsessed with having a huge profit to show off to others instead of being smart and using the super secret strategy of only selling for a profit. If you cannot sell for profit, HOLD. It doesnt matter if your trade is negative for weeks or months, you lose when you sell for a loss.

[Anonymous No.18788610]

>>18786955
>Just wait a few days/weeks/months for it to be green again

That's where you're fucking up and that's where half of people fuck up. You're not managing your risk. There is no 100% always works method in any kind of equity trading. The day will come, sooner rather than later, that the price does not go back to where you entered in at, and it will wipe you out because you kept on holding.

The other half of people lose because they fall for the old "let your profits run" scam. No. You need to take your profits and run. They wait and wait for for fear of missing out, and then one day the peaks, falls, but they keep waiting for the hope it goes up again. Eventually, it turns on them because markets always turn. Having an exit strategy is even more important then your entry.

[Anonymous No.18788791]

>>18788610
I don't use leverage, all of my coins are in a private wallet only I have the keys to. I can hold for however long I want. I don't care about "BRO YOU COULD HAVE MADE SO MUCH IF YOU DID A 10X" because all I hear is "BRO YOU COULD HAVE MADE SO MUCH IF YOU DID A 10X 10 BTC TRADE INSTEAD OF SELLING AT 16K!" That was something someone here told me, they were convinced I was an idiot for holding my coins in a private wallet and playing it safe rather than potentially losing everything in a flash crash or if the exchange froze my account/exchange got shut down or hacked. You are all gambling when you are leverage trading multiple btc on random exchanges.

[Anonymous No.18788902]

>>18788791

No risk, no reward.

Human beings in general are more afraid of loss than they are of an equivalent gain. Your psychology is weighted against risk. That means we ought to actively push ourselves to take more risks in order to act objectively regarding expected value gains.

[Anonymous No.18788938]

>>18786955
>next day/week
Hahahahahahahah

[Anonymous No.18789027]

someone post the ETH pic

[Anonymous No.18789030]

>>18786955
when you decide to hold for months to only get even you lost the opportunity to make money elsewhere. It is better to take 5 or 10% loss to then make a 20% then to hold for a year for no return.

[Anonymous No.18789249]

just learn candlesticks, it has been used for 400 years by japanese silvers and rice traders.
>90% traders lose
This is too vague. Thing is 90% (majority) went into trading thinking they can get rich within a week, so they put all their money. They get in without proper knowledge and information. When they get in, first thing they do is google/youtube "how to trade stocks/crypto", then they get ads for exchanges/seminars or cringe clickbait "I MAKE 3000 USD IN 24 HOURS (GONE SEXUAL) MUST WATCH" videos. After some weeks they will learn about indicators, which is just another thing that the majority learn and used.

Thus, when these richbois know what the majority went thru, it is easy to exploit the majority. Hence the dumb majority hand over their money to the smart minority and scream "daytrading is a meme/gambling". You think the big moneys uses indicators? went to seminars? look up for info or opinions on google/youtube? Daytrading is the most gatekept community of all time. Nobody will tell you how to make it.
>Why?
Consider this, if you discovered a cave that spits out 1oz gold coin every day, would you tell your village about that cave?

[Anonymous No.18789462]

my advice is this, dont trade, but hold. Find out some low caps stocks/crypto and hold. Do your own research on the companies/teams.
>Why hold lowcaps?
Bitcoin was 1 cent once.

If you still want to trade, trade big caps, only use 5%-10% of your capital (the rest is for holding). Buy every dumps, sell every pumps. Never buy on green, never sell on red.
>Why trade big caps?
So there will be always be buyers and sellers, thus you can enter and exit with ease.

[Anonymous No.18789499]

>>18786955
>start daytrading
>not disciplined enough to take your losses
>!!!
>baghold into next week
>week turns into a month
>now your small loss is a big loss

You see that "!!!"? That's where you stopped daytrading

[Anonymous No.18789531]

>>18787131
The Queen of/Pol/ and I guess /k/

[Anonymous No.18789621]

>>18789499
The law of volatility in the stock market means that for most of a stock's life, if it goes down chances are it's going to go back up again. It's not like stocks are a pure upside-down V shape, where they go up and once they start going down they go down forever. Most companies in the S&P 500 are over 100 years old. Plenty of time to buy a local dip and cash out somewhere along the way, I don't see why you would think this is retarded

[Anonymous No.18790297]

>>18787461
You do things because you can. If you can successfully day trade why would you lick mr sheckleberg's boots? If you can't then it isn't even an option.

[Anonymous No.18790734]

>>18787274
It's not a meme, it just doesn't properly calculate the statistic.
- It takes into account people who've never traded in their lives and have never educated themselves/received training
- It takes into account people who explicitly use daytrading as a kind of gambling
- It takes into account people who don't care
If you only go with people who stick to it more than a year and aren't gamblers (to account for other classes of fake traders) you end up with a breakeven rate that's probably close to 90% than 10%, and moreover you will probably find that at least 30% outperform s&p500 on average over any given decade.

[Anonymous No.18790770]

>>18788180
more like shaftman

[Anonymous No.18791167]

>>18788791
You're deluding yourself. You're just as dumb as people that play hindsight trading. You're playing it safe in the sense that you're gambling such a small amount that you merely prolong how long it takes you to go bust, but inversely you're not making any real money.

[Anonymous No.18791742]

>>18789621
explain this

[Anonymous No.18791807]

>>18786955
The point is the adrenaline rush you get when trading ARPA on Binance, you never know if it at the end of the trading day you'll have more or less ARPA. It is literally such a rush. I'm addicted.

[Anonymous No.18792376]

>>18786955
Okay but how did she even get those jeans on?

[Anonymous No.18792493]

Basically, there is a trade-off between risk and reward.

>Just wait a few days/weeks/months for it to be green again

If you are trading assets that are safe enough that you can simply wait for them to recover, then these assets will naturally offer low return. Think treasury bills or even blue chip stocks. In order to make a living trading them, you have to have a lot of capital available. Further, with these types of assets, you aren't really day trading... Most of the time it make more sense to just buy and hold since they are low risk and hence, most of the time, low volatility.

On the other hand, if you don't have loads of capital available and are looking for a way to make your impending loan/rent/mortgage payment, you might turn to something that offers more of a short term reward. Penny stocks, derivatives, crypto, etc. These are high risk, high reward. If you guess the market wrong with these, you can't "just wait for it to be green again." OTM options expire worthless. Penny stocks go to 0. Highly leveraged funds can go bankrupt.

There is no free lunch.

[Anonymous No.18792504]

>>18787274
It’s 90% of margin day traders lose. If you are just trading, no leverage, you won’t blow up your acct and will probably be fine.

[Anonymous No.18792520]

>>18788791
Have fun when the price goes sub $100

[Anonymous No.18792523]

>>18792376
Good question actually

[Anonymous No.18792864]

>>18792376
photoshop