Don’t Be a Day Trader If You Want to Make Money from Day Trading
The title sounds ridiculous right?
Isn’t day trading makes you a day trader already?
No. It all depends on how you conduct your day trading business – both as a full time business or a side gig to supplement your income.
There is no fucking rule written anywhere that you have to be a trader in order to make money from trading or day trading.
In fact, all these large market making firms like Renaissance Technologies are not “traders”. They are firms that develop and deploy trading algorithms to make money from all sorts of markets. They don’t have traditional “traders” that the public know all too well from the stereotype portrayed in movies. These firms hire people to research and manage these robots only. And they make big money day-in day-out.
And that’s the real secret Wall Street is hiding from you – you do not need to become a day trader to make money from day trading.
And it is undesirable to become a trader anyway– high stress, low pay (on average) and too difficult for most people to master the craft.
To make money from day trading you just need to deploy a set of trading strategies and let them do the work. You don’t need to do any trading yourself. You manage your robots. You focus on managing risk.
You don’t even need to know how to create such robots. There are many available out there for you to choose from. There are brokerages that help you trade them automatically. Your job is to pick the right ones based on your financial situation and objective.
Your goal of growing this trading business should be your highest priority. Anyone who walked down the path of running their own businesses understands this. Somehow people lured into trading do not.
Wasting time to “master” your psychological issues and hoping that one day you can beat the market …
While others simply start making money from day trading right from the start.
Who’s the fool?
Trading is just a means to an end – help you achieve financial independence and one day, financial freedom.
Day trading is preferred just because you get to control your risk better.
All these efforts (and money) wasted by so many people collectively on learning how to trade the traditional way, it is disgusting.
Yes, you still need psychological training and basic understanding of the market dynamics so that your “messed up mind” can work properly as a reasonably functional entrepreneur who manage a trading business. It is no difference, however, from starting any other business that you must know the basics.
But you do not need to become a Jedi master of your own mind and an ultra fast chart reader who can dissect massive amount of market information into profitable trading decisions.
Maybe, you secretly want to beat the market with all these thoughts of being a “successful trader”, whatever that term means to you. And that desire dominates you over the most important reason why one should get into trading – making money.
There are many well know ways to make money day trading but your desire to become a “master trader” makes sure you always avoid them because these strategies fail to make you feel like super human.
The day you finally manage to say fuck you to your ego and tell yourself that all you want is to start making money, you mind will open up and you will start to see these proven trading strategies exist everywhere.
You will enjoy your life much more as “Not a Trader” who runs a successful trading business.
I know I do.
Part of the A Smarter Way to Learn Day Trading E-Mini S&P 500 series