Why is Being a Day Trader So Hard? (Stock Market 101)
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- เผยแพร่เมื่อ 30 มิ.ย. 2020
- Depending on how new you are to the stock market, if you are a beginner day trader in any form, I'm sure you are quickly realizing how hard it is to make consistent money. Being a day trader and trading stocks online to make money is truly one of the most freeing "jobs" you can do. It's an amazing lifestyle to be able to travel wherever you want and still make money. While day traders can make a lot of money and give themselves tons of freedom; there is a flip side to it all. The stock market is a very unique place in some regards, and when it comes to trying to learn how to day trade stocks properly and make money, because of this unique situation, it can become very hard. In fact, in the spirit of transparency, most people who try to learn how to day trade stocks, fail and ultimately lose money. You don't need much skill as a day trader to "make money", the challenge and much harder situation is "making money CONSISTENTLY". Why is this so hard? Let me give you my thoughts.
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So true Clay. Also the opposite happens as well. Sometimes good behavior can feel like a punishment. There’s been so many times where I’ve been stopped out of a trade, because I respected my stop loss and then I watch the trade turn around and go the way I was expecting. It almost feels like your being personally attacked haha. Great video, thanks for sharing!
Good point you made on how people shy away from applying stop losses because they saw good potential gains, but in the long run, cutting those losses will save you big money!
good point!
I have that happened so many times... It's like a knife through the heart... LoL
So true, but that's disciplined trading, good job. That "one time" you think I'll just let this thing play out could seriously hurt your account. Could be the market environment as well. Those same trades in a different market might make you rich.
because you are, market movements are designed to take your money. the money movers have more of it and they know how to take it from you lol
For me Day Trading is the best, I can sleep well at night and do not have to think or worrying about my holding all the time.
Cheers
Exactly,I feel the same,I tried swing trading but I get so anxious and sometimes can't sleep at night wondering "what if the stocks crashed" which is why I prefer day trading because I'm going to close off my position by the end of the day and then not having to worry about it anymore.
@@MrBazukaz exactly my thinking , less exposure to the market !
Big facts! With patience this shit is easy and so much fun. Supper thankful to be good at this.
MrBazuka456 need to be a good trader to swing trade and sleep good at night
Quick story : so I was in a swing trade 3k shares at $1.09 then sold at $1.20 then I jumped back in at $1.25 but the order jumped to $1.32 because I took too long to click buy. Then the stock sold off on me and dropped down to 1.06 This is where managing your emotions come into play. Since I study this stock and only trade this particular stock I know either tomorrow or next week it will 100% run back up so I can at least break even. Where I went wrong was assuming the stock would run higher. Greed is a hard thing to shake. If I would have took my profits and walked away for 5 mins I wouldn't be in the red waiting days for a swing to break even. I'd be in a position to take more profits when the stock runs up again. I did exactly what u said not to do in this video. I chased the price and got caught. Lesson learned.
I've learned that lesson too. Now I don't take a position unless there is a logical 1:2 risk/reward ratio that makes sense relative to key levels on the chart.
Thanks for sharing! Much appreciated.
In my opinion this is must view this is a must view for first time Traders excellent work good job keep it up
Glad you liked it
Man this is the best example I've ever seen out of all the videos I've watched on TH-cam. Best of all your lessons are free.
Wow, thanks!
I have close to 3 years of experience and the video is the exact true sprit of trading; it’s extremely hard on long run. But at the same time market is so promising; I’m adjusting my temptation, temperament and all behavior issues to adapt to the market and make my first million dollar. If successful I aspire to go on and trade with my own Hedge Fund for the rest of my life. I’ll start to share my skills once I see they have a value to the rest of traders.
Cheers and thanks for watching.
I love these videos where you are replaying the charts explaining what buyers and sellers are doing at that time. It's help me a lot.
Thanks for the feedback! Glad it's helping
Hi Clay, where are you viewing this chart at? Is this eSignal that’s in your resources link in your website? I can’t seem to get it on my MAC
eSignal... but a goodl alternative is this claytrader.com/videos/the-stock-trading-platform-for-traders-on-a-budget-best-app/
One of your best videos. So much understanding and application to this piece of content. Cheers.
Glad you enjoyed it!
Dude I love your analogy, that's exactly the best way to put it. Financial market is a really strange place.
Absolutely!
Every begginner needs to watch this video! I wish I had seen it in my first days- cause I was that idiot that chased and held and hoped. Never chase and cut your losses quickly.
Sorry to hear, but thanks for sharing your experience.
clay, you honestly nailed the behavior most beginner traders, like myself, risk of becoming. this is the ugly conversation that most of us need to hear and ingrain in our personality: stick with the data, the strategy, and leave emotions out the door. i will be listening to this everyday before i start my morning to remind myself who not to be. thank you, sir. you're a gentleman and a scholar.
Glad it was helpful. Thanks for watching!
Hey Clay, i liked it. quick question , who do you recommend for really good execution besides TOS, can you name top 3 and maybe do a short video on it? thanks!
I recommend claytrader.com/videos/the-stock-trading-platform-for-traders-on-a-budget-best-app/
@@claytrader THANKS for your reply, but I didn't specifically regarding best on a budget. But what is the best broker/platform to go with desktop? Thanks
Its difficult when you first start. My first few trades were losers, I studied and learned patterns and now feel comfortable enough with my research to have consistent green days lately
It’s better to start losing so you have realistic expectations of the market. There’s a lot of people that have huge winning trades when they start and they always get clapped in the long run if they don’t know the rules
I'm about to start out myself and have been watching a lot of Clays videos about risk management. Is there anything you wish you had known when you first started?
@@ThomasCoote89 I wish I had known to not get tempted by seeing a stock rip up and get greedy by jumping in as its going up, only for it to go right back down. Most importantly, I wish I had known to use the VWAP. Ever since I started combining the news of a stock, how much % it is increasing and watching the VWAP, I've pretty much had constant wins, watching a stock bounce off the VWAP or cross over into a breakout. I also started waking up at 3:50 every morning to check news and get in early on breakouts. Theres been a few times where I would see a stock and think to myself, "This is going to go up" but I don't jump in I just watched, and sure enough it, hours later it breaks out.
@@ThomasCoote89 Also, its true what the other comment said, it is mostly psychological. Reading level 2 really helps because if a lot of people are thinking its going up, then 99% of the time, it will go up. Also setting a stop loss or stop limit order right at the support really helps because its better to take a small loss over it tanking and losing 30%+ of your investment. I've grown to like pre-market trading more than during open hours because if you catch the news EARLY, other people will see it as well and you will ride the breakout up
@@ThomasCoote89 if you're disciplined to take stops which you should, you can die by 1000 cuts if you take profits too soon. Baghold the winners, not the losers. When you're up;hold. When you're down; cut soon
Awesome video Clay, completely agree with you. Cannot chase the stock and need to control emotions, cannot have FOMO. There is always another day, another trade, another stock that will make you money.
Well said!
Hey Clay, hope you read my comment but I'm wondering what's your camera setup?
Mic, camera..
I'm not sure. The guy who works with me handles all that stuff.
Thanks Clay, this is very informative!
Glad it was helpful!
Great video. I really enjoyed watching and the topic was explained really well. I would definitely recommend this video to anyone new to day trading
Glad you enjoyed it!
Hey Clay! I am all new to this... Is there a Video list in order to learn the basics? I really like the ratio of fun, facts, and seriousness you have in your videos... You are really good at what you are doing and I LOVE IT!
My learning program is here claytrader.com/takecontrol/trading-freedom-pathway-how-it-works/
its been a while for me on Clay, some channels I rate consistently higher to build your A game, but he's top 10 anyway,... but i gotta say good topic, good execution /chart talk. keep it up.
I appreciate that
I’m glad I watched this video, I wish I watched it before I bought into Vaxart, but still much appreciated!
Glad it was helpful!
You seem to be one of the most authentic TH-camrs/Stock traders out there. Your content is valuable and you speak nothing but the truth -- whether we like to hear it or not. If there is ever a time where you may think, even for a split second, that the knowledge you provide is worthless, please, I urge you to check back at this comment. I watch your videos every single day..and you've given me an immense amount of clarity regarding to the market. Point blank. Will definitely be signing up for your class. I think it'll be worth it. Thank you, Clay.
Thanks for the kind words!
Made this mental error today with ALT , got in on the run up , a second or two after I bought the shares I knew it was a bad trade even as the stock continued to push up. Down 600 at the moment ,would have cut losses but I got that pdt shit going on so got to wait for tomorrow to sell ,wish I would have seen this vid prior. You're doing a good job👍👍
You are entering trades without the ability to sell them? Do you have any idea how dangerous that is?
I appreciate this video. this is a great warning.
Glad it was helpful!
this is actually me right now. I really admit that to myself.
good job on the self-awareness!
Great video bro. I wish I would’ve found your videos when I started.
Later is better than never!
Eye opener, thanks, I day trade and have to admit that my risk management sucks, have to work harder on that. One bad trade cuts my profits in 1 day in half.
Well, at least now you know it sucks!
Awesome video, every beginner trader should see it!
I appreciate that!
agree, THANK YOU
Thanks for watching!
Really appreciate the video, Clay. Learned a lot.
Glad you enjoyed it!
Great video. On the other hand, what about the trader that takes all the precautions he knows and the trade goes against him? What could he have done wrong or missed?
he takes a controlled loss and keeps his account intact
I did this at the beginning although I was never holding and hoping but yes I made these stupid moves. Mine was more being out of day trades and not being able to get out when needed. Since I have made sure I always have an exit plan and I have continued to study by watching videos reading books and trying to learn how to trade.
Sorry to hear, but thanks for sharing.
if you can't beat em, join em. I've been on both sides of game before. I'm starting to think that there's a 3rd side to this. I take "Trade With No Emotions" very seriously and its paid off. Thanks for sharing.
Cheers to "no emotion"!
Great video!! Very well explained.
Glad it was helpful!
Thanks for the examples Clay. This was an very informative video on what to avoid.
Glad it was helpful!
Great upload Clay, I totally agree with you. If someone is a trader without a plan the garden can still be all roses for a while but eventually that trader will end up in a world of FUBAR. You gotta have backtested plans and be disciplined to begin to enjoy some sort of successful consistency to any degree.
Well said!
Thank you
You're welcome
Good video, very real scenario.
Glad you enjoyed it
I gotta agree with regard to chasing. Chasing is a psychological struggle with Greed and your unconscious. All my big winners that plunged my account up 100%+ were good trades at breakouts or overreaction drops with confirmation of uptrebd. Since then, i've consistently been losing small bits at a time with my stops. Why? Chasing. Getting into top gainers as they're going up. Thinking first, "Bahh, this is a bad trade dude, don't get in this," to secondly thinking, "Omg it keeps going up! You do'nt wanna miss another spike! Get in this one!"
No matter how much half of me knows that chasing isn't smart, the other half pumps me full of emotions and adrenaline which essentially fuck me over. I imagine the ideal situation is where you have had so much experience with trading that you know a winner when you see it, using all the patterns and analysis you gained along the way, and then getting the adrenaline and emotion to quickly get into it, rather than having that disconnect between rationality and emotion.
Thanks for this video. It's a great reminder that I need to continue working on myself. Already up 150% since I started 4 months ago, all initially thanks to you Clay (and youtube's algorithms for introducing me to your videos) and your educational content. Now I am going to pursue this interest for the next 30 years, just like with my passion, and try to consistently improve and grow. Hopefully one day I can succeed in order to succeed you in helping others. Cheers
Good thoughts! Thanks for sharing!
I believe that it is because: its your own business and its your own money. There is no one to complain to and it is absolutely positively 150% your responsibility.We Americans love the word “scam” when se get a little bump in the road, and when YOU have to re-evaluate your plan and strategy and accept defeat and continue backtesting, yeah, typical karens (male and female) will say this is a scam
Thanks for the thoughts
A mentor of mine said good trading is pretty counterintuitive. You make a great illustration. Thanks for the video.
Thanks for watching!
If only I had watched this video a week ago before I lost 1400 dollars (my entire account). I was doing exactly those bad behaviours you pointed out. When it worked I thought I was the new buffet, but when everything crashed I realised I know nothing. You're very right in one of your comments down below, you may make gains but if odds are against you, the market will take it all back and then some.
Sorry to hear that, but just learn from it!
This is a good overview on why the market can reward bad behavior, and drive a new / inexperienced trader into hubris and complacency. However, it doesn't talk about WHEN an appropriate time would have been to enter and exit positions on these example securities without using hindsight. Using historical data to provide an example can be misleading, since we can then cherry pick examples to prove a point.
I value your insights, so, from your perspective, what "things" do we look for ahead of time? In other words, what would you have recommended, ahead of time, when looking at these charts or other factors, that would have told a trader, "nope, now is not the right time, the run up has already gone a good ways, and now it's near the top," or "nope, you're too late now, wait until 'x' happens to make a play." You mentioned breakouts, but one man's breakout can be another man's top, so what can one do to increase the odds?
Thank you in advance!
I'd encourage you to sign up for my (free) class I offer here claytrader.com/1-hour-trader-transformation/
What if you caught with massive gap against you would you lose more than your Initial deposit .
Depends if you are using margin or not.
Great Video. Thank you so much for your constant honesty about trading. You tell it like it is. So many people think the stock market is a get rich quick answer. Trading is hard work and takes discipline and dedication.
I appreciate that!
Its similar with poker in some ways. I've sat at tables in Vegas and seen people who don't really know how to play, have a fortunate run and wipe out tables of skilled regulars. If they play long enough though they usually get cleared out when the luck runs dry.
good example
This video is so true Clay - MM
Cheers
I honestly think getting rid of the pdt would lower the failure rate. Reason is because a lot of beginner traders try penny stocks that make mass moves quickly to try and get rich as quickly as possible. These kinds of positions are really not suited for swing trading and that's what the pdt rule kind of forces you to do. The moves go up and then back down usually too fast within a day and the pdt guys get screwed. New traders are usually impulsive, have less than 25k accounts and play penny stocks and that combined is a recipe for trouble.
The PDT rule is a joke for sure, although, there are ways around it such as this claytrader.com/videos/how-to-get-started-day-trading-with-only-100-and-zero-pdt-rule/
For me, I would exit taking the loss. Then it takes off. so many times already. Still learning and working on becoming a disciplined trader. This is a difficult profession for sure! Experience! Thank you!
Thanks for sharing!
Were looking over my shoulders!! That's me you describing with this very stock. Made $ 58k on a matter of a couple of weeks. Gave it all back apply this bad behavior with other stocks...gave all profit back to be sitting on a $55 loss.
Sorry to hear that, but thank you for having the courage to share your experience.
Chart analysis videos. I need to see these.
How about I just teach you how to analyze a chart all on your own? Wouldn't you agree that would be much more beneficial? Go here claytrader.com/takecontrol
😂🤣🤣 why am I getting hair under my arm pits. What’s going on ?
:-)
Thanks clay, when I very first started trading I was basically gambling buying short term call options on spy and holding them overnight hoping for a gap up so I could wake up to $150 or $200 and then I got a rude awakening after losing a ton after trying “do the same but on a larger scale” ever since that I wanted to trade for real not be a gambler.
You're not alone! Trading options like that can be very tempting!
in a situation like these. Yes these are patterns but how you never know what a stock is going to do. you could hold a stock, read the financials and then randomly drop.
This is why RISK MANAGEMENT matters most.
bro please tell me how can i be a trader.. show me path...do i need to take a course or i need to read books...i want to be trader and fully dedicated towards it and ready to lean ...btw love ur content
I'd encourage you to sign up for my (free) class I offer here claytrader.com/1-hour-trader-transformation/
Do you trade commodities? Great video btw, i used to do alot of bad behavior before i started watching your channel and studying trends, analysis etc. thank you alot for helping me get closer to financial freedom.
I don't much, but many members trade the futures/commodities market.
@@claytrader Interesting im gonna join soon then.
My favorite analogy to use: Blackjack
Example 1:
If the dealer is showing a 10 and you have a hard 14, it is insane to double down. If the dealer ultimately busts and you draw a 6, you win. It is still an insanely dumb move, you just got lucky against the percentages.
Example 2: Dealer shows a 6 and you have an 11. You double down. You end up pulling a 5 and the dealer draws; ending up having an 18. You lose but it was still the right move based on the percentages.
Thanks for sharing!
I still don't get how a stock can open at twice the previous days closing price. Is there some kind of market manipulation involved?
Nope
9:33 Nailed it!
cheers
So true, I was getting rewarded just a week ago for my bad behavior, I bought Apple calls on 120 and it drops from 2 at the beginning till 0.97 for option, and it cracked my position and highest losses at $1500, and eventually, I hold and hold until it went up the option price at 3-4, its hold and hoping always, making me frustrated, and in fact, I didn't make that much of money at all. This bad habit has affected me so much from the beginning, hold, and hope. I'm still losing 7k on my account overall.
Well hopefully you can start to improve!
Great Sir...
Thanks for watching
Damn bro you got a good point
I'd like to think so...
You just summed up my first year of full time trading (I got this... BOOM gone). Now I don't hold anything longer then half a day (for the most part) and I only trade mid to large caps with size that matters. I have now only had one small red day in the last 60day of trading and I'm averaging about 120 a day which I'm ok with because I know I'm growing and this takes time, patience, and self-awareness. I could bump my size but I'm not ready mentally.
Thanks for sharing so people can see "what" I'm saying is not a myth.
Jajajaja I enjoy this video a lot. I heard people talking about the market and how lucky they get sometimes!
Yup... lots confused "luck" with "skill"
I like you videos but xspa was a 3 to 1 reverse split so it never really went up above 3
Yes it did....
Hey Clay.
Great video.
Unrelated question - have you been well? You seem to have lost weight bud.
Hope you and family are keeping well during this difficult time.
I've lost lots of weight, so much so that enough people asked me to create a program on it, which I offer here maintainthegains.com/
@@claytrader Ah ok. So long as the weight loss was intentional.
Does anyone know his channel for chart analysis??
just run a search for "claytrader BA technical chart analysis"
What is your second Channel name? I am really interested in analysing charts!
ClayTrader Video Charts
@@claytrader thanks alot!😁
@@boaz6492 you're welcome
The style of momentum trading, that most of communities teaches, is hardest way to learn the day trading.
100% agree. In fact, it goes in line with this video claytrader.com/videos/why-do-most-beginner-stock-traders-fail-heres-my-theory/
Didnt the Motley Fool 100 ETF manipulate this particular stock?
You'll have to be more specific, I talked about several stocks.
You the man clay
Thanks!
Excellent video 👌
Thank you! Cheers!
Gonna start fresh this week . I’d say I have been lucky . I wanna make my own luck by making the right choices
Good plan!
@@claytrader I did it clay . Stuck to my plan and didn’t overtrade ! Came in with a performance mindset instead of a I need to win mindset and my entries are solid !
@@Envyhundreds good job! you should join my community! claytrader.com/team
yeah , really hate the hold and hope game .. it sucks
yup!
This was me yesterday and I got rewarded for my bad behavior. I went through all the stress and I got rewarded. Although, I know what I did was not right and I don't want to do that again... I just can't find what works for me yet.
I'd encourage you to sign up for my (free) class I offer here claytrader.com/1-hour-trader-transformation/
Great video. I think there are a number of reasons day trading is so difficult but my top 2 are: Most people think it is easy and don’t study enough before using real money, and people focus too much on profit and not enough on losses. The problem is most people (at least in America) see rich people making money on the stock market and think they can do it too.
Thanks for sharing!
great video
Glad you enjoyed it
I love how day trading challenges human perception of reality.
Indeed!
So think out of the box for daily profit
Kind of
Hello Clay,
My name is idiot. Let me tell my wonderful story: I made 220 on workhorse group in a day and then another 116 the following day for an increase of 336. I then acting as my name suggested and started chasing the price and two days later, I lost almost 350 dollars and everything I made is gone. 😀.
After watching this, i am sure that my name is no longer idiot, Thanks sir! 😊
Your name is legend.
Was watching workhorse today. Seen it went to $14 and thought "this could be dangerous,". Ended up recovering to around $20 I think? Might also add a lot of people see value in it. Time will tell.
thanks for sharing!!! takes courage!
So true and thank you for all the guidance and great lectures. Keep up the good work and for all those that want to start Clay has great content in his University as i have learned so much and just getting started.
Much appreciated
For my day 2, I traded nio and blnk, made over $3800...while I'm working
Congrats
nice
Thanks
This is true it happened to me
You're not alone!
Short selling gives you a huge advantage.
not if you don't know what you're doing lol
Yes I know I'm the only tool that is a failure in my trading. Hope I can address this and act on this right away.
Don't give up! Keep on fighting.
First, I feel most people just don't have the psychological make up to become successful traders and these people make up a huge proportion of that 90% who fail. There are way too many emotions that can trigger you to do things that will cause you to fail and it only takes it happening a few times, leading to major losses, to make most people give up and quit. The second thing is that day trading seems like it is just so easy, I mean you buy low and sell high right? You also get a chart that makes it easy to see the lows and highs so how hard can it be? These people who think it is easy, flail about doing the wrong thing over and over, reinforced by occasionally getting lucky, until they score major losses and give up and quit. The thing is, trading is damn hard and if you don't invest a ton of time learning how to do it, before you go live, your just contributing to the 90% failure rate of traders.
Thanks for the thoughts.
UVXY hard to trade... But big reward these days
And big potential loss.
Gonna ask you a serious question CLAY!!!!!! ????? What in the hell do u have an issue with NETFLIX and DISNEY PLUS * 16:00 in the video....... jk jk another great video thank you and see you on the next one lol 😝
hahaha... that was serious indeed!
Ahhhhh the good ole days
Indeed
It's not just that people use flawed strategies, it's also that they don't even know why they use the strategy.
How did that stock go from $30 to almost $5 in 1 day despite circuit breakers?
Good point.
Day Trading is contrary to real world.
People say never give up or be optimistic.
Just apply those principles here in day trading and you will blow up your account.
Thanks for the thoughts
Because the risk($) is big. Gambling in Casinos is much more easier at times, problem though is the discipline because it requires a Lot! temptation to have more is crazy!
We'll have to agree to disagree.
@@claytrader lol yeah that's why I said not at all times.. there are professional gamblers too.. and they have their system working around with probabilities. Being a Day trader in this current market is just crazy its like you really need a ton of luck to be consistently profitable. It's just interesting to observe..
On the side note, I like watching your vids I really learn a lot. You offer more realism compared to others.
@@escapeartist1141 no such thing as a professional gambler.... if you can become a professional in something, it is NOT gambling... case in point, you've never heard of a professional slot machine player.
do you know how i learned day trading by watching casino gambling .. because a successful gambler also has discipline and money management like we traders have because price is a probability.
a successful gambler is not gambling..... this is why you've never heard of a professional slot machine player...
is professional slot machine player is a sure money making method?
Mmm, Cheetos.
Thanks Clay, great lesson.
so good!!!! especially the puffy ones
It's beyond me why so many people think psychology in trading is bullshit. Being really good at chart analysis is not enough at all. Trading is all about psychology and consistency.
Also, you don't need any skill whatsoever to make money in the market. But making money consistently is difficult as fuck.
Well said
Ha Ha! I think I there was just a touch of sarcasm in this video. Ha Ha! All I can think of are those new traders that go from 0-100mph in one trade. Ha Ha!
Maybe here and there ;-)
Paper Trading JFIN -I made like 2 million in monopoly Money because as soon as I saw it went up - what ever it did 700% it's going to come crashing back to earth... shorted from 29 - sold at 8...
Good ol "paper trading"....
Thnx for video clay really enjoyed it. Can u make a video on a day in life of clay.
Will try
There is a diffence between a bad trade and a bad entry price.
A bad entry price "is" a bad trade.