WINNERS & LOSERS

Goodbye

If you are a consistently winning day trader …. congratulations! Sincerely, this web site is not for you. Goodbye.

Newbies

If you are a “newbie” this site isn’t for you either. You are welcome to gain all you can from this web site. But as a brand new day trader you need to lose money. To feel the exhilaration of profit and the agony of loss. Feel the anger and despair of blowing up your account. Pain can be a great teacher for those having the strength of character to learn.

Losing Day Traders

If you have been day trading for some time and still losing money this site might help. So, read on ….

“90/90/90” is an expression used by brokers and it is their little secret. It’s depressing and implies that 90% of traders lose 90% of their account within 90 days. But sadly it’s quite likely that at least 90% of traders lose 100% of their money and it certainly takes a lot less than 90 days.

Is day trading difficult? Yes. It seems easy, but it is not. Day trading has to be learned. It takes time and effort.

Why do over 95% of day trader lose? Are they dumb? Are they lazy? Are they without discipline? Are they reckless? Are women better than men at day trading? Is their level of education important? What about the age group? Do the silver seniors do better than the young bucks? We don’t know. There has been surprisingly little published research trying to answer these questions. I suspect Goldman Sach et al have a good idea but they keep that knowledge to themselves. Can’t blame them for that.

I think there are three reasons why over 95% of day traders lose money. I used to be there so I have experience. I hope this website will gradually reveal some of the answers.   

$100 Trading Account

Sounds crazy doesn’t it? Starting with only $100. What is the use of that? The answer is … you can learn to day trade.

  • With a real trading account it’s possible to start with a very modest amount of capital and become a successful day trader. The $$$ are unimportant. It’s the %%% that matter.
  • Don’t tell your friends or family that you are starting out with an account of $100. They will laugh or pity you. Probably both. For several reasons brokers hate small accounts. They want your money! Lots of it.
  • Look upon the $100 as the first instalment of a long-term tuition fee. The account will blow up. So put in another $100 and try again … and again … and again. Keep on trying until you either give up or eventually become successful (i.e. long-term profitable).
  • If the idea of starting trading with only $100 seems ridiculous then start with $1,000 or $10,000 or whatever sum is meaningful to you. But whatever equity you put in be prepared to lose it. It’s a long, hard road but the pain of losses can be a good teacher for those willing and able to learn.

500:1 Leverage

Trading CFD’s has three important advantages.

  • Trading can be Long as well as Short.
  •  High leverage of 500:1 means small price movements become very significant.
  •  Traders with only modest capital have a chance to earn sizeable profits.

Let there be no misunderstanding. Trading with 500:1 leverage is the nitroglycerin of trading. Get it right and large profits will be made. Get it wrong and the trading account will blow up. Not for the faint-hearted.

Target Profit 1% Per Day

What target profit should a day trader aim for? 1% per day is a realistic starter.

  • There are around 20 trading days in a month. Trading 18 – 19 days and with a modest profit target of 1% per day yields around 20% profit at the end of the month. 780% for the year Brilliant!
  • Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it”