THE UNSPOKEN TRUTH OF BEING A DAY TRADER

By | September 14, 2015

THE BEGINNERS LUCK SUCKER PUNCH

In Gambling, this thing is called Beginner’s Luck. More often than not the first gamble makes you money. Gamble of any kind. I tried Horse Racing too. It applies everywhere. Why does that happen ? Why does God hate his children ? I think God has a lot of work to do. All work and no play makes Jack a dull boy. So God gives you the first profit. He gets bored so he wants to spice things up and see how you cry and dance at the same time.

My dance had just begun. Crying would come much later.

WHAT IS DAY TRADING REALY ?

Imagine playing Super Mario on your computer. Now imagine playing Level 9 where Mario gets to the princess. To make matters exciting, let Mario run at 10 times the normal speed. When Mario is on the run, switch off the screen at random intervals. Just for fun. That is day trading in a nutshell.

But it’ not all that bad. There are a few advantages of Day Trading ;

GREAT ACTING SKILLS

Over the period, as you capital erodes you develop acting skills. Obviously you can’t tell your partner or your friend that you are sick addictive gambler who lost money and time both over the last few days or months. You learn to make the poker face. You get so good at lying that a Lie Detector is scared of you. It doesn’t want to lose its job. Better yet, you learn to smile even if you are bleeding inside. It makes you a tough guy. Bankrupt, but tough

STORYTELLING SKILLS

You will lose on most days. You will make the same mistakes over and over. But you can’t say that to yourself. So you make up stories. One day, you will blame the Fed. One day, you will blame the RBI. Then the PIGS, the Fed ( again ), IIP, Inflation, Freak Trade, unexpected results…blah blah blah. This is how you get creative. You keep doing this long enough, you can be a fiction writer. Since all fiction is lies anyway.

NEGOTIATION SKILLS

No MBA course can teach you this. As you capital erodes, you will seek more and more margin from the Risk Management guy to trade more . He will say no. One day he will start swearing too. But you will persist. You will beg, plead, fall on the floor and start crying, but you will get the job done. You won’t take No for an answer. That’s a good skill to have. Also, sometimes you will delay the cheque, switch off the phone and go underground. They can use you in Infrastructure companies  when the bank calls for money.

Now let’s look at the downside.

BLOOD PRESSURE AND HIGH CHOLESTEROL.

Some Yogic guru said, life is counted in breaths. In day trading your emotions will swing 20000 times a day like a yoyo. You will scream and you will panic alternatively. Your breath will jump from slow to fast like a drunkard walks. That’s the birth of cardiovascular diseases – Unstable breathing pattern.

OBESITY

On bad days, you will eat chocolate or something fatty loaded with butter. That kind of food makes people happy. On good days, you will eat all of that plus you will drink beer. Sometimes you will also take your friend along to tell him how rocking your life is. So net result is you will get FAT.

SMOKING / DRUGS

People start smoking to handle stress. Then smoking causes more stress. Then more smoke. This goes on till your breath starts smelling like a cigarette ashtray. One fine day you will get tested and your doctor will hold your cardiogram in his hands and say – Haha, it’s a miracle you are still alive.

FIGHTS WITH SPOUSE/ GIRLFRIEND

When you lose money ( which will be often )  you will fight with your wife and your kids. You will make them miserable.

By Rahul T @ https://friendswithzero.wordpress.com/

9 thoughts on “THE UNSPOKEN TRUTH OF BEING A DAY TRADER

  1. Vijay

    Trading is all about mastering your emotions and maintaining balance. It’s an ultimate game of winning over your own Self. The market is only a facade. You Trade yourself for hell or heaven. And its really, really tough because you are not fighting others but yourself. The ultimate philosophy of Life is learn here.

  2. Sivaraman

    I feel the whole article highlights one fact…that people do not take ownership for their action, so they endup doing all this drama. People who are serious would take necessary measures to counter these negative results and move forward.

    Trading is not really funny….it is the biggest challenge one could ever face because “it has nothing to do with matering the market, it really is about mastering your own self!”

  3. jamwalr

    Have gone thru all these in my trading career….Luckily trading was not the sole source of bread and butter…but now am able to mange all these emotions in a more mature way.. still enjoyed the journey

  4. Adil Wadia

    Money made on weekly charts and monthly charts is more satisfying than intraday trading. I have made more losses on intraday trading than swing or positional trading on the nifty. Stocks is one thing i do not touch, but i do track the top heavyweights on the index to forecast the nifty movements. i would recommend weekly charts to the novice trader and resist the intraday trading greed. logic says bigger the timeframe more reliable is the chart. i have known superb intraday traders though. but they are a rare breed.

  5. Balpreet Singh

    A true but entirely one-sided story…95% losers are like this but not everybody. Actually so little is known about the guys who consistently make money that we often ignore their winning characteristics and focus almost entirely on losers. Secondly, intra-day or positional stance of a trader is a figment of imagination…sometimes momentum is strong enough to make you go positional on a trade and sometimes it fizzles in a day and stock reverses its direction…the key to success is only DYNAMIC HEDGING & RISK MANAGEMENT…everything else is just story-telling…

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