Day Trading: A Career of Discipline and Education

Day trading, often seen as a gamble by many, has a high failure rate: 90% of traders lose money. This statistic is the reason why proprietary (prop) trading firms thrive and continue to dominate the market. The key lies in their understanding of the carelessness often seen in planning and decision-making by retail traders.

When faced with the choice to invest $100,000 into personal education or a prop trading firm, many opt for the latter despite having no prior experience in consistently profiting from the market. This lack of planning, delayed gratification, and a willingness to learn from mistakes is empowering the very industry they criticize. The few who invest in education to bet against the house are considered elite traders. But do they have the right to complain about market conditions or the industry's practices if they have not met the most basic requirements?

Success in Trading: A Rare Achievement

Like aspiring sports players who often fail to make it to the top levels, only a fraction of traders succeed in the long run. Achieving high returns for more than 3-4 years in various market conditions, be it bear or bull phases, is considered successful trading. Yet many fall prey to common mistakes that result in financial loss:

Trading without a well-defined trading plan. Entering the market too early, too often. Emotional trading, driven by fear or greed. Guessing on trades without proper analysis. Ignoring stop-loss orders to mitigate losses. Taking positions that are too large. Overleveraging, risking capital beyond what is safe.

Developing the necessary mindset takes years of practice. It's a journey that involves making mistakes, learning from them, and adopting sound trading practices.

I Am Not a Professional Trader

With many seasoned traders at major banks and financial firms like JPMorgan Chase, Goldman Sachs, and Fidelity, it's important to differentiate between retail traders and professional traders. I avoid the term 'professional trader' as these experienced individuals are already meticulously trained and evaluated for their skills. Being a virtual trader skilled in live trading and technical analysis is a step towards becoming a professional, but it's a journey, not an overnight achievement.

Live Trading and Education

During the week, I engage in live trading and technical analysis education for about three hours daily, covering topics like cryptocurrency and forex basics, as well as tailored sessions for those aspiring to become profitable traders. This commitment to education and practice is crucial for anyone looking to break into the professional space.

Conclusion

The road to success in day trading is marked by discipline, education, and realistic expectations. Aspiring traders must be prepared to face setbacks and learn from them. While certain firms thrive on the failures of retail traders, it's the retire mindset, education, and hard work that truly set those who achieve success apart.