The Truth About Day Trading
ฝัง
- เผยแพร่เมื่อ 30 พ.ค. 2024
- Day trading, the activity of buying and selling the same financial asset on the same day, sounds like one of the smartest approaches to investing in stocks. Why bother holding onto an index fund when you can make daily profits? And to make day trading sound even better, there are lots of people on the internet nice enough to teach you how to trade, and make huge easy profits just like them, for a fee, of course.
Timestamps:
0:00 Introduction to what day trading can and can’t do for you
0:36 Is day trading an effective strategy?
6:43 Day trading for a living?
7:52 The paradox of skill
10:13 Why do day traders still day trade?
Referenced in this video:
The Cross-Section of Speculator Skill: Evidence from Day Trading
www.sciencedirect.com/science...
Just How Much Do Individual Investors Lose by Trading? faculty.haas.berkeley.edu/ode...
Trading Is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors faculty.haas.berkeley.edu/ode...
Day Trading for a Living? papers.ssrn.com/sol3/papers.c...
Understanding Skill A Paradox Plus Qualitative and Quantitative Approaches research-doc.credit-suisse.co...
Learning Fast or Slow? papers.ssrn.com/sol3/papers.c...
All That Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors pdfs.semanticscholar.org/1026...
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At 3:14 I say the study sample period was 1995 - 2019. The animation says 1995 - 1999. The animation is correct. Missed that in post.
I'm taking cfa myself. basically if you want a career in the industry you must understand how it works
@@ngominh7987 , What level are you and who do you want to become?
@@WarwickAvgur What's Tesla's income minus green credits, which Tesla believes will start to decline in 2021.
TH-cam Watcher
, net income of 20 billion for the year 2022 given that corporate tax stays at 21%. They will sell 2,500,000 vehicles that year.
@@WarwickAvgur if you look at the CFA curriculum you will see that it is not only intended for active managers. Here it is for the 2020 Level III exam:
Ethical and Professional Standards 10-15%
Economics 5-10%
Equity Investments 10-15%
Fixed Income 15-20%
Derivatives 5-10%
Alternative Investments 5-10%
Portfolio Management and Wealth Planning 35-40%
All of these topics come up on a daily basis for me, and I am not an active manager.
This is why I recommend night trading instead.
Just in time before daylight saving time ends! :)
US daytime, Malaysia night time. Yeap!
Lol that's funny
its called overnight, and thats the worst time for trade anything
Fucking legend
I tried day trading for a while. After fees, I made a fair amount of money, and I was able to consistently beat my financial advisor who was managing my RRSP/TFSA accounts. As a result I was pretty pleased with myself. Then I learned that I was only barely matching the aggregate market returns for the same time period, but with a lot more effort. That finding was enough for me to move to passive ETF investing, and fire my financial advisor.
Everyone is a genius when the market is going up.
@@hatter1290 I was making money when the market was going down too. But long term I was only matching the aggregate market returns, and with a lot of effort on my part. Passive etf investing is so much easier, and for the same returns.
@@Green__one thats exactly what I always have wondered... all these traders never show their overall CAGR.. why do they still do it though? Some ppl sell courses and shit that’s a convenient source of income for them.
But why do the others do it? thanks man!
@@pran10000 socially excepted form of gambling.
Used to day trading too. It's kind of stupid when you get the money just by holding.
How to end up with 1 million dollars with day trading, start out with 2 million dollars.
But you wouldn't have made 1 million then, you would have lost 1 million.
@@alexc5369
He’s joking, but right on the money 💰 👍
@@alexc5369 you obviously don’t understand sarcasm
@@alexc5369 you 'make' it disappear in this case.
How to end up with $1M when day trading....start with $2M.
"Since there is no evidence of learning among day traders, paying someone to teach you how to day-trade is only making your prospects even worse after costs"! Just brilliant!
Laughing moment... 🙃
I used to make a living playing online poker, when it was very new and not mainstream. My edge against the competition was large, as there were many inexperienced beginners to the game. I was making 50% more than my day job, but in half the time. After two years easy (and fun) living, I realized that even though I was still a good player, the skill level of the competition had greatly improved, so I went back to day job when the poker margin got slimmer. This day trading clip reminds me of these wannabe poke pros out there, very few make significant $$$, most over estimate their own skill level, and vast majority do not make $$ but like the thrill of the game.
That is a great comparison and an interesting anecdote. Thanks!
The easiest and fastest way to make money at poker is playing against the drunk fishes at planet Hollywood casino. I started with $100 bankroll and turned it into $3000 in 3 times
Not a fair analogy. I was a poker player too. But there is a limit to how much money you can make. There is a limit that is based on your ability to sit in a game, focused and prepared, and a limit of number of players which also spreads to number of hands per hour, etc, total money available at any given time to be won, etc etc.
There is ZERO leverage in poker. It's dollar for dollar. Not so in trading. But, nice try at an analogy. You get a D grade for the effort, and it shows that you know very little about trading.
@@exploringwithdave5926 Are you drunk? Rubber's message was not related to day trading per se, but to the Paradox of Skill (starting from 8.35 in Ben's video).
@@PierSilver I am not drunk. It is very interesting, all of this information. All of these very fine well prepared and neatly typed and graphed reports. I suppose if "Day Trading" is narrowly defined to only include those person's who trade only in the market during trading hours and pull all trades by market close, so as not to carry a trade overnight, then I would likely agree with that data. And no, I am not drunk.
However, I consider myself a "Trader". I exclude the notion of time. Why? Because every trade is unique, and all trades must be viewed in that context, which would dictate the timing, entry price, exit strategy, safety net, etc.
But, the paradox of skill... Does not apply here. I would venture to say, like baseball, the skill level has risen and so has the competition. Except, not all of the competition is competent. This adds a level of variance which serves all sides. Call them the fish. Rational market algorithyms aren't so adept at understanding irrational behaviors. That gap creates opportunity. Nonetheless, I will agree that day trading is a challenging and In my opinion, less interesting method of trading that is more akin to and likely satisfying for, a gambler. I have watched some of them online and they are glued to 1 minute charts like addicts, calling out for green, and chiding the red... It's ridiculous and silly. Truly that is like watching KENO numbers or Slot Machines. Gambling at its best.
I am a trader. Period. There are times when I'll trade something for a few minutes. If the opportunity presents itself, and there is bandwidth to catch some momentum, I'm in. But those are few and far between. I am a swing trader I suppose, with various trades in play at any one time, and a lot of energy researching them, watching them over the course of their lifetime, and making executive decisions to add or subtract from the positions as I see the trade develop. It is very different, and in many ways more like tournament poker.
My point about Poker, regardless, is that the analogy he was making with Poker is not truly a good one. Even the idea that when you make money someone loses money is a fallacy in trading. In poker that is true. And when you wipe out all your players you hold all their money. Poker is not scalable. It relies on individualistic behavior. Trading is far different. And, I should know, because I am, or have played the part of both. I see zero corellation. In fact, I don't look at the market as a bunch of competitors. I see it very different. They are not necessarily competitors in the same manner. I view trading very differently. But then, I am different. I am successful. There is an idiom that applies to almost all forms of trading: 90% of traders lose 90% of thier stake, in the first 90 days. This is a likely outcome. It is true, like poker, that people approach it as if it were simply easy, and they act wreckless in it. That wreckless behavior often provides initial good fortune... But it wears itself out and the other side of luck catches the player off guard just as they were begining to believe they were experts! All of a sudden, broke. There is truly a parallel with that for sure. And, I suppose in that way alone, a good poker player is like a good trader. Know when to hold em, know when to fold em, and know when to walk away.
But the activities themselves have extreme differences. By the way, poker is not gambling. That is a misnomer. Poker is a game, this is true, and like most games, skill is a predominant factor of winning. The same is true for "Trading Markets". This is evidenced by the number of very successful traders. I don't speak to Day Trading... That seems to. Me to be very casino like. I have that experience too, and approach it very differently.
Let's have a drink sometime. Take care
Eyyyy, sound investment education delivered in crisp 4k.
I actually had an instructor in a trading class while I was at uni that emphasized the need to avoid trading guru courses. Market efficiency being what it is, sustainable trading profits can only exist if you or a very small group of traders are aware of an established relationship in the market that you can exploit for profit. The more people know about it, the higher the odds are it'll be priced out by others flocking to take advantage of it. So chances are if someone's selling you a strategy it's probably because it no longer works lol.
Sounds good in theory, doesn't work in reality. You can't get rid of certain edges
@@drsgme69 Maybe risk factors as a whole, and for the long term. That's about it.
@@drsgme69 Certain edges like what?
My financial engineer professor told me that we are not learning to become a trader, no, we learn to become the casino staff, and casino never take risk itself, and that's when I realised what day trading actually means, fat profit for banks and agencies who actually manage their risk and earns premiums and commissions, not some gamblers who thinks they can outsmart everyone.
Technical trading is the astrology of economics.
Most of them are making money selling their courses not day trading
@@Smartskull0 Not true. A small percentage, as Ben mentioned, do make legit money day trading. Those are the ones proud to show their monthly statements. However, 99% are making money selling courses.
it`s like the old days with the goldrush. The desperat men looking for gold always went bankrupt. It was the men selling alcohol, whores, food, shelter, equipment to the golddiggers that made money. And maby 0,001% became rich from the gold ( that they often lost again gambling it all away in the stockmarket). Real fortunes are made on investing in the long run ore making real products/services and selling it to the public. The same go with speculating in the short run in realstate vs buying holding/renting out. the first is gambling the second is a legit way of making money
Yeah, or just with shitloads of TH-cam views like humbled trader
@@Smartskull0 very true. Besides they never show their overall CAGR, just profitable trades as proof
False!! Who tf hell doesn’t want to make a course to show people how to get money like them? Exactly, stupid!
And imagine how much this analysis would tilt further in passive investors favour if you factored in the day trader's opportunity cost of not working a different full time job.
Passive investor and dog walker = genius
Day trading pro tip #1: buy high, sell low
So you’re telling me there’s a chance...
There's definitely a chance. If you have a genius IQ and dual PhDs in mathematics and machine learning.
There's a chance to win the lottery as well...
lol! You bet!
Ahhh, a fellow optimist. I'm planning to fund my retirement by buying lottery tickets. Much easier than day-trading : I only need to get lucky once and i'm set for life :)
Ha ha nice reference for Jim Carry
I like this formula when a topic is addressed in a podcast episode in a sort of "causal" way and then in a video in a more structured way. This helps understanding the subject especially for folks like me (not english native speaker) - also the videos are more understandable thanks of presence of titles and graphics. Love the new lighting, image quality is way better now. The content is always great 👍🏻
Thank you Ben. We were awaiting to hear your opinion (backed up by data and research, of course) about day trading. And finally, here it is. It was pleasure to get exposed to scientific research and conclusions on this topic.
Thanks Ben. Im an index investor but a couple weeks ago, I almost purchased a $5000 course on trading. This just confirmed my decision not to do so. Im staying the course with indexing!
You don't need to pay money for a course in trading. And you don't need to go to medical school if you want to be a doctor... Oh, wait, you do. Well, ok. Maybe you could home school yourself to be a doctor. After a few dead patients you'll start to get the hang of it. Right?
Ok. So, the fact is, you need to INVEST SOMETHING to get something. To attain a skill, you need to invest time and attention coupled with practice and evaluation. You can seek that knowledge on your own, if you aren't like the typical lazy person who believe you get a dollars worth of value from a dollars cost of education or tutoring.
I'll tell you flat out that most (if not all) trading school schemes today are bogus, but not because the content is poor, but because they over estimate the students abilities to even get close to understanding any of the content before they go heads up broke.
Don't be lazy. Read. Watch. Practice with a small account. Read more. Watch more. Practice more. Rome was not built in a day my sad friend. Money cannot buy you ability without a more personal investment of your own interest, time, attention, practice, and rework.
Piano is just as hard and takes 20 years to master, or we would just become concert pianists too. For some it could be faster.
@@exploringwithdave5926 thats legit a BS argument. comparing a hobby trader with a doctor saving lifes. like cmon t-dog.
yeah its true that u can and should invest into your education. but the thing is you can gather all the information free if you put in the time.
if you pay 5k it will take a while to make it back, and beeing profitable in the first year will be a hard thung.
but ye men i see your point
Dude🤦🏽♂️
@@exploringwithdave5926 Better to learn a real skill like electronics engineering. Then I can invent something that can make millions as well as create businesses. Trading doesn't provide any extra useful skills.
My issue with these studies is that most of them have been performed over periods of time where information wasn't as accessible as it is today and most simply don't track modern trading. Counter-arguments:
* $0 commission trading is a fairly new phenomenon that has become the new normal from 2018 to 2020. That alone would skew most day traders particularly new day traders into the underperforming territory prior to this shift. Now day traders have unlimited day traders in extremely quick succession.
* Modern tools are far more sophisticated with several charting and indicators that had not been invented prior to the 2000's. They are not magic buy and sell points, but will allow skilled traders to make more educated predictions by following linear trends and momentum.
* Information into baseline day trading is more widely available on the internet. Prior to Google and TH-cam it would have been difficult for anyone to acquire any skill prior to trading without any sort of mentorship. Retail investors would have ZERO shot of beating industry traders in the time frames described in these studies.
* The definition of day traders is conveniently broad in these studies. Are all these people self-proclaimed day traders? Or are they entry-level investors who have no clue what they are doing? I mean, a ton Robinhood millennials would probably fall within this "day-trader" category and they would probably have no idea that what they are doing is considered day trading. In their mind they are just "investing".
* There is an influx of millennial influence that is starting to take effect on the markets. If I read another article from hedge fund manager bitching about how millennial retail investors are ruining their precious money printing algorithms, I'm going to lose it.
Thanks Ben! Definitely the best investment videos on TH-cam.
I have just recently started learning about financial markets, investments and trading.
Thanks to this video, and many others, I can confirm I will not become a trader.
Top notch as usual Ben. This one supports what most of us likely suspected all along.
Thank you so much for this. I've always felt like i've been missing out by not day trading, but this solid evidence based approach to analyzing day trading really helped solidify that gut feeling of hesitancy about it.
That´s one of the reasons I'm very grateful that I find this channel. Real data, from Real economical studies.
There is just so much noise in the world that you might be convinced to believe that basic math is wrong. With is not the truth, of course.
I know it will sound "guru stuff" but really, the information here makes me change my whole way of investing. Nowadays I mostly invest in index ETF, giving attention to market premium fundaments (ex: small stock with ETF: IWN) and when paying attention to buy/sell without paying attention to the S2 deviation of the prices (using Bollinger bands). And a correct tailing Stop
It´s simple, it´s boring, it´s slow, but that is one of the most consistent strategies I have ever used in my life. And in compliance with basic math and market story.
Thanks again. Keep up the good job.
Best channel in this field seen so far... I know that lotta work and time is needed, but I wish you could post videos more frequently! :)
Your videos are great. Your approach of using papers is the best.
Thank you for sharing
Great perspective on the subject. Thanks! Love the channel
This was the video I was waiting for! Great video Ben
@Ben Felix Scam alert! 🇳🇬🤴🏿
He speaks the truth. I wish I saw this video 15 years ago. He forgot to mention paying for software and data feeds. Heavy losses and the opportunity cost of not putting that money that was lost, into an index fund and participating in the gains of the market overtime. People who day trade will tell you about their gains but trust me, they aren't telling you all of their losses so dont fall into the trap of " keeping up with the Jones" in day trading.
Il thrust you.
@@teun7923 🤣 I just caught that
brilliantly researched video - thank you Ben
Love from India. The Content you provide is too good and valuable. You do so much hard work and we get your research at no cost (free). Thanks Ben Felix. :)
Thank you Ben... another fantastic video answering great a question
Excellent video as always Ben!!
Very well researched and presented. Thank you for sharing
Fantastic video as always.
Thank you for another great video Ben.
The real winners here are the 5.7% of people who learned their lesson to stop day trading after just one day.
Most of them lost their accounts the first day I'm assuming.
That was me lol. Should clarify. I tried to day trade one stock once and was like "yeahhhh.... This isn't really rational"
You're assuming that that's not because they yolo'd their entire portfolio on a SPY call expiring the next day
@@weeaboobarko That would be Option trading rather than traditional day trading. An option trade treated like a day trade is called Scalping.
Good one! 🤣
Great work Ben. Love from Australia!
Great video as always. Day trading will likely never end as too many people can't accept market efficiency and there will always be people who think they can outperform the market. Some people are just in it for the fun, I think, which is great but it doesn't make much rational sense and does not align with long term financial planning.
A great video, once again. Trading-course promoters are a pestilence on financial TH-cam. Thank you for reading the relevant literature and presenting the findings so clearly. The results are in.
And some of those guys get views almost equal to Graham Stephan like Ricky and ziptrader
Awesome video! As a new investor, I've always know day-trading was a bad investment method, but I didn't know why. Thanks!
Fantastic data and approach. Thank you!
As always... Just great!
Thank you so much. An in-law of my is encouraging me to venture into options and day trading. My portfolio has been doing quite nicely with just long term growth investing, but I have been tempted. I had no idea that the prospects of day trading for the newbie were so bleak! With the rather startling information presented, I think I'll just pass on the glittery world of options and day trading.
day trading is the most persistent bad idea in personal finance. excellent video as always.
I have always thought that TH-cam should remove day trading ads. They are scam con artists 🤷♂️👀
Google doesn't care, I have reported actual scam not something that looks like a scam or similar. I described the operation and everything in detail to them.
The official response from Google was something along the lines that they are not responsible from the advertised products. I was only asking to remove the ads not to take responsibility but anyways they made it clear that they don't care what the advertiser is doing as long as that are getting paid.
Naw... TH-cam shouldn't act as a publisher since they have no responsibilities as such. Allow everything or be liable for its content... One or the other. It's gross that they can currently decide which content they allow, but can't be sued for what they do allow. Makes them waaaaay too powerful. Same with FB, Twitter etc.
That is a big accusation. The truth is, colleges have thousands of drop outs. Are colleges a scam too? And, of those who stay in college and get a degree, many cannot succeed in life. Is that also an indication that colleges are a scam? Take personal responsibility for your life. If you don't like one school of thought find another. If you want to learn to trade invest the time and effort. Lazy is as lazy does.
Amazing research Ben, as always... Nobody should be day trading unless they are Jim Simons and have a full room of the best mathematicians in the world.
Last I read, I think they had 200-ish Ph.D’s on staff. (Real Ph.D’s: math, physics, etc)
Another great video. Thanks Ben.
Thank you, Ben for insightful and data-based view on the topic. While there's discussion about day-trading, which is "the activity of buying and selling the same financial asset on the SAME day", I believe a lot of people including subscribers to your channel would be interested to explore how efficient "swing trading" or short-term trading is, when trades are made not within the SAME day, but rather within a week or a month.
There's the LTREV, STREV, and Momentum (cross sectional/trend following) factors, maybe they could be compared to other types of trading
Ben, you have the best finance channel on TH-cam! Keep up the great content.
@Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿
Remember the famous quote "The market can stay irrational longer than you can stay solvent."
If you are consistently betting the market will be rational and your investment horizon is 8 hours, boy are you going to be in for a nasty surprise.
I don't think day traders are looking for rational markets, they want predictable markets.
Day traders have been wiped out this year I would assume, nobody could have guessed we would have 10% unemployment and the highest stock market of all time.
@@demilishing But the ones that made it through will be louder than ever. Happened to make the right choice at a risky point and then "hOw tO BeAt ThE CoRonA ViRUs MaRket 100% oF thE TiME"
@@GlobusTheGreat "Just buy when they go down because they're only supposed to go up"
@@demilishing Not Tesla lovers on Robinhood. Half made out like bandits, and then proceeded to lose it all on another stock market gamble.
very informative, thanks Ben!
I've been reading about day trading for a week, its refreshing to hear a realistic aproach to the day trading activity, when I see a video about how easy and fast it is to earn money on day trading I just turn my ears off, it is risky, statistics are against you, if it is so easy why isnt everyone doing it? Thanks for the video you earned my subscription.
I have two friends who day trade. I know that it's not going well for them, but they keep claiming, even in a major market crash, that "their stocks have actually been doing really well". That's what stock pickers and day traders always claim about their own stocks. They have confirmation bias toward their good stocks, and they ignore their bad stocks. They also don't know how to calculate their gains or losses, it gets complex in a hurry when you do a lot of trades.
I don't bother trying to convince them, they can think what they want, I just stick with my index funds. The idea that they have in their heads - that they're smarter than everybody else in the market and that they'll be able to have an edge on the others in the market because of their "research" - is statistically preposterous to me.
Actually one of the day traders I know is my tenant, he rents one of my rental properties. I just think to myself "the longer he keeps himself poor by day trading, the longer he'll rent my place". Mean, right? Lol. But hey, people need to have a certain amount of freedom to do what they want. You don't go around telling smokers to stop smoking, or going to tanning beds and telling people to stop giving themselves melanoma. Who am I to tell my tenant to stop doing what he wants, if this is what he believes in?
Is it really that difficult to tell if you're making money or not? Just look at the amount of money in your account and whether it goes up or down over time...
I have a very similar thought about one of my tenants, who miss the irony in telling me how "bad" my returns in REI are vs their daytrading while renting from me.
@@chrisparker9672 Yeah, there’s a reason why they’re tenants.
Day Trader: "you should do this, this and this, you'll never make money doing it your way"
Me: "what's your ROI so far?"
Day Trader: "what's ROI?"
@@denisl2760 hahaha!
Or better yet they track it, but they don't count their failures... "of course I was wrong about X because of Y, but I learned and now I'd do Z and..."
The image quality is just great on this video.
Another great topic. Thank you for the quality content!
@Ben Felix Scam alert! 🇳🇬🤴🏿
Fantastic video! I hope it reaches the ears of those who need it most.
@Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿
In another life you could have been an amazing teacher as your everyday job, you are able to get across information in an enjoyable way which is very hard to do.
@Ben Felix Scam alert! 🇳🇬🤴🏿
Traded US stock index futures full time from 2007-2014. Frequent trading activity generates significant transactions costs beyond commissions, including slippage (getting a worse fill than expected) and continually paying the bid-ask spread. Limit orders do not eliminate this as you rarely get filled unless price trades through your limit, so you are effectively paying the bid-ask even then. The continual drag of this "overhead" reduces wins and magnifies losses, something rarely discussed by the gurus.
What was it like day trading for a living?
Why do so many day traders try to teach? To earn the money they need to throw at the market...
It's like the old adage: the quickest way to make money is to write a book on how to make money. These days though, it is to have a TH-cam channel or skillshare account. Show your successes but actually take profits from your followers.
Those who can; do. Those who can’t; teach.
@@dhess34 I've often found that phrase demeaning to teachers, but I think in this case it works.
@@stevenspencer306 Its demeaning but its kinda true. Someone who has an exceptional understanding of physics will end up being a Physicist whereas someone with a moderate understanding might end up being a physics teacher.
@Redemz And you'll find many exceptional Physicists are university professors where in order to conduct their research, they are usually required to teach. e.g. Richard Feynman taught at Caltech and was also a Nobel Prize winning Physicist.
@@stevenspencer306 Education majors aren't very selective. All the smart people go into STEM, Business, Finance. The leftovers become teachers. Sad but true. We don't value teachers in our society like we should.
Ben Felix, Thanks for a rational and well thought out consideration of Day Trading and Guru's selling Day Trading Courses.
Thanks for another amazing video
What a great video. This is an eye opener!
Really worthy insights
Day trading has nothing to do with investing.
and I think that too many people use the word investing inappropriately. What is the term "investing"? Is there a difference in the goal? OR, is it just a time issue? Surely the system is set up to support longer term investing by providing lower taxes on investments held greater than one year, but, really if you think about it, they are not so different otherwise. For me, the word investing is simply taking the long view, and not paying much attention to the daily swings in price in any or all the bucket contents that one might hold in a typically balanced account. At the end of 20 to 40 years, there is an expectation of a gain. An average one at best unless you were a great picker or had followed a successful trend (not knowing in advance likely that it would or could be, since all of it is speculation). For a technical trader however, the gains can be far greater (and losses far greater as well, surely). And factoring in the tax increases for short term gains, most people might think it is just not worth it. But, that is because they are either unwilling or uninterested in the trading ideas. It does not have to be "Day Trading". It can be a mix of "trading" styles. Whatever will make a profit. Most people fail miserably at this, including me, at times. But, being schooled long enough, one gets seasoned and can begin to see the typical patterns that emerge with the converging / diverging fortunes of each tradable asset. Money can be made in both directions and quickly. It is not uncommon to make 80k in a day, and lose it the next if you arent careful. The goal is to be right more than you are wrong and to use stops to protect yourself from disaster. "Day Trading" is specifically looking for small moves, and not being in the market for "after hours events and news" which can kill a company stock price overnight.
Any way, both are "investing" some risk for some reward. I cannot trade stocks without some investment of my own, borrowed or wholly owned. I think it is a fallacy to say that traders are not also investors, but they certainly have a different style and timeframe. But I guarantee that all people will pull their money if the future returns start to look poor, no matter what style of investing you do. Just because they are not actively trading, does not make them more intelligent, or more godly like. The goal is the same. Make money.
true is.
D
This is a really excellent video, packed full of fascinating information. Thanks Ben, have a sub ! I feel quite glad to have lived through a time when human ingenuity could still find an edge over the algos, but I think those days are now numbered. It's sad, really. As machine learning and synthetic intelligence gets more capable, the absolute skill level will increase to a point where only those with the largest server farms can possibly gain an edge. To us mere humans, markets will simply appear to be random noise, responding so quickly to emerging news that there's simply no way to compete. A few well-financed robo-traders will suck up all the alpha, the rest of us will have to stick with our Vanguard funds.
You can legit use something like fibonacci levels lmao
Thanks for educating us, Ben!!! :) my financial life is saved by you
@Ben Felix Scam alert! 🇳🇬🤴🏿
Hi Ben, love the videos! I'd be interested in you doing a video on the scottish mortgage trust and its outperformance vs the market over the last few decades. It seems to contradict some of your main video themes, but I may misunderstand. Cheers!
Most underrated channel on TH-cam
The part about how people go to places where others refer or find on TripAdvisor or have good photos, are more likely to be disappointed when they actually get there and the place is full of people, is such a good analogy to people who chase stocks with huge intraday volatility or are always in the news.
Spot on! Listen and learn.
Thank you Ben , Fantastic video again. Long time fan of your pods and TH-cam series. Thank you for you insights into this. Do you have any data with regards to US or Canadian stocks and day trading ?
EMERGING MARKETS, COVERED CALL, DEFENSIVE investing strategy, UNCORRELATED assets -- my suggestions for next videos. Thank you, I always watch.
@Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🤴🏿🇳🇬🚨
I have a background in online poker and every aspect of this rings true with my experience of that. Right down to bots coming in and squeezing value even more. A lot of people could beat the game, but only a few could beat the rake.
And those were mostly just some Russian teenager trying to squeeze money for vodka out of suckers in poker tournaments, with stock trading you're up against multi-billion-dollar companies hiring teams of geniuses with PhDs to design their trading bots. The chances of you coming out ahead in the long run are basically zero.
Hi Ben! Luv your videos. Incredibly insightful with the use of backup of studies. With regard to this video, you mention that “some” people do make real money day trading. As per your videos about “Stock picking” and “Warren Buffet”, it would have been great if you had data on whether it’s always the same day traders over time that make money or if “luck” moves around. The reason I say this is because I have a friend that keeps tell me that he’s one of the few that make money day trading. Maybe he does, and then again, maybe he doesn’t. Hence the value of finding out if “luck” moves around from one “savvy” day trader to the next... 😉
You are f...king awesome. Thanks for sharing the info.
Comment for algorithm. Nice video, need to show this to clients
such an informative video!
In summary day trading is just gambling! Great video! Facts based and well explained. Thank you 🙏
So many people need to see this... Too many people are too gullible! Thanks for the video!
Bens videos are gold☄️🚀🙏🔥
Absolutely hit the nail on the head !
Great video as usual. Thanks for showing with data the enormous difference between gambling (in the form of day trading) and investing. Unfortunately the horrible results of day traders, stock pickers and market timers scared off so many people from doing real long term investing. Good quality information, like the one in your channel, is a great "weapon" to empower people to be rational (passive, buy and hold) investors. Thanks and cheers from Europe!
Here in Brazil we only talk about day trading, every day someone is selling course. It is pathetic to see people doing this and looking for shortcuts to get rich.
Lotteries are also really big in brazil. Coincidence? I think not.
Braziliians love the idea of easy money. That's why our people keep falling for pyramids, lotteries, gambling, day trading gurus
@@marciocruz4758 I heard Nigerians are very similar, that's why pyramid schemes are very popular there.
E aí, depois que passou o efeito de retardo mental, produzido pela ideia de dinheiro fácil, comecei a raciocinar melhor e vi que muitas coisas não se encaixavam nesse "paraíso" descrito pelos gurus de elite. Decidi pesquisar o outro lado da moeda, nada melhor que ir direito na fonte, já que isso surgiu nos EUA. Os argumentos usados no vídeo só confirmaram minhas suspeitas: é sim possível lucrar com day trade, entretanto vendendo sonhos não operando.
Pena que nossos conterrâneos não são capazes de fugir dessa ilusão, que na tentativa de conseguir uma renda extra acabam por despender seus poucos recursos.
And your alternative to get rich is... I'm still waiting.... Silent? No other way? Have you found a way to get rich? Oh, let me guess, put 10% of your earnings in a 401k, for 40 + years, then retire with enough money, if you were lucky enough to make good money and could afford to put money in to one. How else? Oh, that's right, start a rival Amazon or Apple. Or, maybe start a business by risking all your assets on the future if some industry. Right? Well, there is a bit of risk in all of that. You just don't see it.
It isn't necessarily a short cut either friend. Because a successful trader generally has quite a bit of schooling and learning. Do you believe that playing baseball is a shortcut? How about being born more intelligent than others, is that a shortcut? Did your boss who makes more than you take a shortcut too? You should realize that the trail you CHOOSE, can be as long or short as you like. It just depends on you.
I would really enjoy making subtitles to my fellow brazilians to this video. Day trading courses and platforms exploded in the last couple years here. Many of these courses are borderline scams, and some are more about self help (selling the idea of success) than trading itself.
I saw statistics that show 99% of Brazilians who day trade lose everything. Most of them make minimum wage.
Another great video, Ben. Thank you! It's unfortunate that even with evidence based videos like this one, most people would still try to day trade trying to beat the market. At least do it with money you really don't need, same goes for gambling.
@Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿
Great!!! Always great!
*Hope the people how really need to see this video will. Thanks for spreading the truth Ben.*
@Ben Felix 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿
Great information.
I tried high frequency trading (~ trading about once a week or something like that) and lost about 50%. I switched to long term strategy of buying tech stocks (that the experts thought would do well long term) during a crash and holding them for a couple years at least. Then I bought airline stocks while they were falling. So far I have timed it just about perfectly with the perfect stocks (although I don't know how I did...may have been just luck) and have earned my money back and made a killing on top of that. Overall I am up around 8X my original investment.
Clear said. Thanks
You forgot the other great reason day trading is so popular. A lot of this daytrading gurus are paid by brokers themselves.
Turns out that “buy in the morning, sell in the evening” is great, as long as you are the one charging for operation!
I was so waiting for a video about day trading, it’s a epidemic nowadays, courses being offered all the time.
Thanks a lot 🙏
(I’ve never listened to a podcast, where can I subscribe or listen to your podcast?)
Link in the description link to the video
Hi Ben! Could you make a video explaining how and why stock prices change? What affects the daily rise / fall of a stock price? Is it the same case with mutual funds/ ETF'S?
Thank you!
Yet another video where Ben forgot to write “*blink*” on his teleprompter...
(I LOVE your videos/podcasts; keep ‘em coming!)
Maybe he's blinking at the same rate you're blinking, so you miss it
The content is valuable on this channel as he's good at explaining and interesting. I listen because I want to understand how to invest for retirement. Instead of time-consuming and risky day trading, I want to keep investing in something where my money is likely to grow as much as possible in the next 20-30 years. His videos often seem to give pieces of how to approach these questions, but often leave more desired. Maybe that's because a lot of his audience is interested in opening brokerage accounts and investing or trading. There have to be a bunch of people who want to understand more about how to pick good funds to invest in and just revisit to rebalance and make tweaks and there. IDK, what do I know.
@@user-kb5jb2ez3n 🚨🇳🇬🤴🏿 This is a scam y’all 🤴🏿🇳🇬🚨
great video Ben, would like to see you talking about copy trading.
Been there. Stay away from day trading specially if you dont want to spent 16 hrs a day doing just that and dont want to lose money, life and health.
Thank you. I hope you do a video on Dilution of Stock and it's impact on the investor
I keep seeing these ads on TH-cam about this single woman in Seattle who guarantees you $1000 per month with 30 minutes trading per day....I hope people don’t give her any money
1000 a month is actually pretty low and doable. I made 900 in one day and it could've been more but I wasn't greedy and sold very early and I had a smaller position than people with more money have. Fact of the matter is for every college football standout that goes on to have success in the nfl there's 3 that suck in the nfl. Day trading is no different.
Results may vary lol
@@b.e.r.nnetwork8251 the point is... everyone would do it if you could easily follow her advice and get an extra $1000 per month just by trading 30 minutes per day.... the review of her trades aren’t good so red flags all over
@@user-ug3rj4ij9j another point being that in literally 99% of situations buy and hold is better. Buying into blue chip or good etfs takes less than 30 min a day and guarantees you a better return anyway. Side note, I wouldn't say anyone who's made it to the NFL is bad at the sport don't know what this guy's talking about...
@@midosabbagh guarantees you a better return but not the same day
People who lost money in stock market should watch it.
I did day trading, before Ben told me I found it was a losing game and quit, today I know some of the reasons.
Absolutely wonderful! Nothing speaks like real data.
- A Fan from India
Thanks for your comment , I'll advice you contact my account officer for assistance if you want to make great profits.
+1 (8 0 2) 8 6 6 - 0 2 3 7
T e x t
@@user-kb5jb2ez3n 🚨🇳🇬🤴🏿 This is a scam y’all 🚨🇳🇬🤴🏿
Hey Ben thanks for the video, do you know (or anyone for that matter) any academic research done about David Swensen or Ray Dalio's approach? It would be great to know your thoughts about them as well! Thanks again for yet another great video.