Why
is Day Trading so hard?
They say
that if you don't know what you are doing, ANYTHING is hard.
They also say that if you don't know who you are, the market
is an expensive place to find out. This is because the whole
point of the market is to inconvenience as many participants,
as often as possible, especially the beginner. Think about
it - if this were not so, then making money stock day trading
in the markets would be simplicity itself, and we would all
be rich.
To learn
from our day trading advice, start by imagining the market
as being one of those 'banana boat' fun rides down at the
beach. As the speed boat pulls the inflatable banana around,
the driver is doing his darndest to throw the passengers off.
Some have stronger grips and can hold on longer. Some have
weaker grips and fall off while the boat is in the shallows,
missing out on all the fun. Those with the strongest grips
run the risk of being towed miles out to sea. In the same
way, the market twists and turns, searching for your stop
loss, trying to part you from your money if you don't hold
on tight enough; or even worse, bankrupting you if you hold
on TOO tightly!
At every
point, if you hold a day trading position, the market will
keep sneaking up behind you and shouting 'BOO' in a full-on
attempt to scare you into quitting and handing over your hard-earned.
You can probably see that the point of this colorful analogy
is to reinforce the principle that you need to KNOW WHEN
TO ENTER AND WHEN TO EXIT YOUR DAY TRADES.
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