Did you see the BBC2 documentary on last night, Traders, Millions by the minute??? Everything seemed to point at day trading. It was almost like long term trend trading didn’t exist.
I mean some of the utter madness that they showed was astounding. Computer screens here there and everywhere. Investing with no actual plan, just guessing market direction. No profits for 7 years. Unbelievable.
Funny thing was that they mentioned the richest people on earth of which many were traders. But I bet my last trading penny that none of them were day traders.
If you haven’t seen it, it’s on iplayer and you really must try to watch.
I was writing the script for the programme as it was playing. Like the mum that traded a demo account up to 1.6m. I sat there thinking wait until you use real money. And the guy that had been trading for 7 years and never made a profit. Crazy… why didn’t he try something else?
Also, not once did they mention the type of trading method or system the people were using.
In fact I’m sure some of them had no system at all. Even though some were of the thinking they had some insight, they were just talking garbage and had no idea.
The guy with the porche, who most certainly looked like he was making a good living; never gave an insight into his activities which I think should have at least been mentioned. He said he had been trading for 17 years so maybe he had something to share?
Supplying information on how to profit from the financial markets is not like supplying tips for horse racing. The price is not likely to be affected. So that guy had nothing to lose by spilling the beans really; even if not in its entirety. But he admitted to not making more than a £1000 a day after 17 years of practice. And obviously he had losing days.
There is just no way a day trader will beat a long term trend trader, that’s for sure. Yet so many people think day trading is the golden goose. Yes you could make a profit by the looks of things. But to make certain I’d need to test a system for a year. And there is no way I could honestly manage to do it. Or do it without going bonkers.
Day trading is so stressful. And that’s going to be whatever system you’re using to do it. But I get so many emails asking about it from one angle or another. Just what is the attraction?
One thing is for sure though, a least have a plan of attack before you start to trade. Even if it’s a plan to only break even, you’ll be gaining experience without the cost.