Why Day Traders are Loosers?

As an ex-trader who made 1000% Profits before, Let me tell you one thing bluntly – 99% Traders are Loosers!!

Yes, even after Running complicated calculations – full day & night thinking like a Scientist – they are Loosing Money!  Let us see the reason why they loose money.

Core Purpose of Stock Market

The core purpose of stock market is NOT Day Trading!

The core purpose of stock market is LONG TERM INVESTING where it will Connect companies with investors so that:

  • Companies can raise money to expand
  • Investors can earn Profits through capital appreciation & dividend income

Unfortunately, Stock exchanges found another game over they years known as:

  • Day Trading
  • Margin Trading (another version of Day Trading)
  • Futures & Options
  • Short-Term Investing (buying for selling after few weeks)

This is just working over the price-movements.  Mostly they are good for the Maasters except the Trader:

  • Stock Broker earn more income & margin fee interest through Day Trader
  • Youtube Channelwaala  generates more income through Selling Day Trading videos
  • Government gains service tax of 12% & capital gains tax of 30% (if you win)

Unfortunately, 99% traders took this wrong way of multiplying wealth as it seems quicker.  They expect 100 to 1000% returns in a trade leveraging high & with no money management skills.

Brokers lure you for Trading & Not for Investing

Remember, Brokers encourage you for Trading & Not for Investing!

Scientists

These traders are like Scientists as the trader-world require them to Think a Lot on activities like below:

  • Simple Moving Averages, Exponential Moving Averages, Candle Sticks, Fibonacci Series, RSI etc.
  • Futures & Options, Calls & Puts etc.
  • Local News Focus – Budget, Note Bandi etc & International News Focus – Chasing Trump, Oil Price etc.
  • Accounting, Budgeting & Risk Analysis etc.
  • Think during market time for current moves
  • Think after market time for next day

All these work requires No less than a Professional & It Tax your brain like a Scientist!  But, Are they gaining profits from this? NO! Even after explore trading with good amount of passion & dedication, I have seen 99% Traders won’t make profits & make losses – that is the reason we are not seeing any rich person around us.

Few things to note for Traders are:

  • 99% Traders lose money in Day Trading – But in Long Term Investing No Loss LINK
  • Trading is one of the brain-storming job where the investor works hard to destruct wealth
  • A News can bust all your Technical Analysis calculations
  • Trade Tips providers do not actually use them – but sell them
  • You cannot see Trade Millionaires – But Long Term Investor Millionaire exists like Warren Buffet, Ramesh Damani, Dolly Khanna etc.
  • Instead of Trading, if they do Part-time work they could have earned more Profits
  • Most importantly, Traders are loosing the Opportunity of Investing in a Growing Economy!

Simply, If you are a Trader, then you are Taxing your Brain like a Scientist & Making others Rich!

So, if the BHOOT of Day Trading gets into YOU, it will take Years to Exit out of it & Mostly after enumerated destruction of Time, Capital & Confidence!

In my Guru words, Day Traders are those Greedy People seeking Short-cut to Wealth!

Who are the 1% Successful Traders?

We have seen successful traders though.  They undergo months of training, use big money, have highly paid advisers, they write options, use sophisticated applications, have free day-time & solid money management skills.  Most of them are Investors too & Trading is part of their Hedging strategy.

Cutting the Weed out

Coming straight to the point, if you wanted to be real investor in passive mode go for this education where you will save time & money & generate financial freedom for future.

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Categories: Blog, Uncategorized

2 replies

  1. I am holding R System international since your recommendation… I see some promoters are selling stocks in open market and that concerns me… what is your opinion?

  2. Well said and summarized!!
    Actually it will be nice to do a study on the traders in bse or other exchanges over a year or two and have a evidence based result showing the case that you have outlined. Am sure these studies may exist somewhere…..
    thanks for the post!
    george

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