Why intraday trading is most difficult form of trading?

Day Trading or Intraday trading gets an inordinate amount of hype around us. There are lots of experts on Twitter, YouTube or Telegram claims to make you a profitable day trader in one go. They deceive you to believe that you can make tons of money just investing a few hours a day. Seems Sexy right?

Going with such perspective drives many people to believe trading is an easy and quick way to riches. Day trading can be a good source of consistent profit with a significant amount. However, people required a balance between learning and earning. One should get enough experience that works for him when he comes on the market in full-fledged. 

Here I love to mention with my experience - Day Trading is easy but making money out of it is a difficult job as long as you don’t practice hard. There is no quick money, but you could be a good trap in a quick scam for sure.

Day Trading is easy but making money out of it is a difficult job as long as you don’t practice hard. 

Who are day Traders?

Traders who want to end the day with no open positions, so they don’t have to carry the risk overnight, are known as Day traders. If the buying and selling happen the same day in any security is said to be Day Trading. It seems good when you hear it the first time, however, as a day trader, you will have limited time for you, to make or break your profit. 

Double-edged Sword

If you are an amateur, you may be taking quick risks and playing with fire. The odds of success are in day trading is less. However, if you want to score a perfect shot - you have to be walked on the edge, falling either side may cause your capital damage and mental disaster as well. Professionals know their limit. Typically, they are well established, experienced and maintain solid discipline that sails them out every wave of the market.

The other characteristic that they are kept in check- they invest an only sum of money which they can afford to lose. It might be harsh, but the truth.

You have to be walked on the edge of the sword.

Make a Robust Method for Trading

I understand candlesticks as well as I can check charts - can I be a good Day Trader? Perhaps Not.

One prevalent reason traders might lose money is the absence of robust trading method or strategy on that they trust. Understanding candlestick or chart can make you profit one time or two, however, to make a consistent profit, a trader must have tested and tried methodology. 

If you develop an effective strategy, it can be used in any market conditions, uptrend, downtrend or sideways, and can even inform you when to stay out of the market because the conditions are not favourable for your trades.

To make consistent profits, a trader must have tested and tried methodology.

Your strategy should be as effective as it gives timely alerts to trade or not to trade. It also helps you to prepare to take action before a profitable opportunity arises, not after. That only comes with your research and putting enough time in preparing it. Your strategy is as good as your research is! Without that, you trade on chance, not with confidence and convictions.

Good Things take time

Though we have limited time to trade in day trading, however, it takes a good amount of time to prepare it. Putting a few hours efforts cannot make you a profitable and successful trader, but putting consistent time in leaning can make you the consistent earning.

Day trading is like a growing tree. You cannot get fruits in one day as you have given 10 hours of watering, but you need it to water regularly. In return, the tree will grow slowly but consistently and a day will come it will bless you with sweet fruits.

Learn: Mistakes that Day traders do, and you should avoid

Supremacy of the Market

You can be a star, but the market is a superstar. You cannot understand what is going on behind the mind of a superstar. To gauge those thought processes and uncertainties - you have to learn it from the market only.

Numerous issues and situations contribute to making the market difficult to gauge and navigate. Taking the time to learn and understand what triggers shifts in trading activity can better prepare you to respond to those changes. 

You can be a star, but the market is a superstar.

Greed and Fear

A good day trader should have a good mindset to deal with greed and fear. The desires and intentions of a trader can substantially influence the outcome if he doesn’t take action at the right time to tap it. A bit of success can lead to greedy actions that stray from an established trading method. These include taking trades too early, holding on gain for too long or not cutting losses soon enough in a losing trade.

Likewise, fear causes a trader to hold back too much when an opportunity knocks the door. It also initiates a sell in panic.

Greed and fear always tandem with you, however, you have to control them and that controlling force come with an experience.

The desires and intentions of a trader can substantially influence the outcome if he doesn’t take action at right to tap it. 

 Learn: Moneyness of an Option

So, day trading is as easy as planting a tree. But for getting consistent fruit, it tests your patience and perseverance. No one can make you rich overnight. No one can develop you a trading methodology. No one can earn you an experience.

Only you have to take action to become successful day traders. And of course, it takes time. I believe Intraday trading is not a difficult form of trading, however, absence of patience, learning, sound system of trading, confidence and conviction make it difficult.

You might be interested to learn: How to select an option strike for buying

What do you think about day trading? Is it difficult to survive with? Post your suggestions in the comment box.

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