Warning Daytraders! Your Risk Is Greater Than You Think! 🤔

✅ Please like, subscribe & comment if you enjoyed - it helps a lot!

Warning Day Traders - Your risk is higher than you think. But how risky is day trading? Is day trading a good idea? OK.

Day trading can be very rewarding but don't be tricked into thinking that its less risky than swing trading or other forms of trading.
- You're risking more per month than you realise
- You're exchanging time for money
- You're way more vulnerable to negative emotions
- You can become too consumed in trading creating a poor mindset

✅ Our channel sponsor for this month are Trade Nation meaning these guys are covering our costs of operation. We only accept reputable and properly regulated providers as sponsors. Please support us by trading with this provider. Trade Nation offer the popular MT4 platform as well as an easy-to-use web trading platform with fixed spreads.

📜 Disclaimer 📜

81.7% of retail investors lose money when trading CFDs and spread betting with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Related Videos
6 Day Trading Myths Versus Reality ⚒️
10 RISK MYTHS: TRADING MYTHS vs REALITY

Day Trading vs Swing Trading - Which is Better? ☝
DO DAYTRADERS MAKE MORE MONEY THAN SWING TRADERS!? 💰
5 Signs You Are Better Suited to Short Term Trading 🖐️

[ukspreadbetting]

👉 We are seeking more contributors who can produce great video educational content about trading for our channel. If you think you have what it takes please get in touch by sending a message to (remove the AT and substitute by @).
👉 It seems a lot of our viewers are non-subscribers. Make sure to subscribe to our youtube channel as we upload regular videos! If you hit the “Bell” icon (🔔) you will receive a notification on youtube every time that we upload a video on our channel. Bell icon hitters are super fans of our channel 🥰

[forexchartanalysis]

Risk management is key, especially with day trading.

[ganntradingsystemstimecycl]

Well no trader should be trading without a weekly & monthly draw down.. Also ones trading manual for day trading must have refined daily loss low ratio win spread, for example. Your trading capital is $10k maximum daily loss will be about $150. Weekly draw down $400, monthly draw down $1000.

[TehBr]

For stocks, I'm surprised you didn't mention trading halts. These can force a daytrader into holding a position overnight and being subjected to gapping and price shock when the halt is lifted.

[LukaszAdams]

As a daytrader like you say you need got this max dayli lose or week loss etc.Becose if you start trade every day without max dayli loss you can be tilt and lose account very fast.

[santacruzdz]

Indeed it's high risk and 95% fail in this game

[krishnamoorthy]

Ok sir. Noted. Thanks for your update.

[Tapper]

Great presentation and all so true. I buy and sell real shares plus I spreadbet. Trading real shares is generally with a swing trading technique and of course is without leverage - both properties make for a far more relaxing trading style. My spreadbetting is general more a scalping technique which I consider to be any trade which lasts less than a day or is for a few tens of points. It requires much screen time and being on leverage I have to be ultra cautious at all times - especially now that any Covid or Trump related news is bashing the markets. I like to do both but I need regular breaks from the latter because of the emotional strain.

[ganntradingsystemstimecycl]

Also like to add. As a day trader myself. I have never spent no where near 8hrs day trading. Mark I don't know how you've come up with that. As all traders I know who day trade spend roughly 2-3hrs max. For me most days I'm finished within about 2hrs in the morning. I trade ASX pre Market. Scalping if there is volatility. Then run some morning trades which are over before 12.

[axelhippo]

But now the question is who makes more money long term? Swing traders or day traders?

[renemuller]

Thanks for the video! If you don't mind, I have a related question to your first point: risking more per month when day trading. This argument works in both directions, doesn't it? My question is about potential profitability of day trading vs. swing trading. I know you already did videos about this topic, but I still have doubts. And this video reinforced them actually. What's your opinion about the following thought process:

Assuming I follow the rule of not risking more than 2% of my account per trade (swing or day trading). Also assuming same win rate and a risk-reward ratio of 1:2. So my potential reward per trade is capped at 4% of my account. My day trade is 20 pips while my swing trade is 200 pips. By managing position size and leverage, I'm able to risk full 2% of my account in both trades. I trade 10 times bigger size when day trading, so equal rewards for each trade type.

Now let's say my swing trade lasts 5 days while I'm doing 2 trades a day as day trader. When comparing the overall result of a theoretical perfect week, a swing trader would have an end result of 4% per week - while the day trader has 10 times 4% = 40% per week, compounding not even included!

Of course there is no perfect week in real life and there will be loosers among those 10 day trades. But this argument also counts for the swing trader. So it can be excluded for this comparison I think.

In your last videos about profitability of day vs. swing trading you came to the conclusion, swing trading is more profitable. But seeing the tought process above, I really cannot see how a swing trader could ever have a better result in the same time?

What am I missing? Is it because a swing trader tends to have more trades running in parallel? But would the 2% rule also work for parallel trades, considering how risk is affected in correlated markets?

Many thanks for your help!