The truth about day trading is that it’s not easy. If it were, everyone would be doing it and raking in millions. The allure of quick riches often misleads people into thinking that day trading is a get-rich-quick scheme. However, the reality is far from it. Many traders, especially young ones claiming to have made millions, often end up blowing up their accounts. So, what does it take to become a successful day trader? Let’s delve into the intricacies of this high-stakes game.
The Illusion of Overnight Success
You might come across traders, particularly young ones, who claim to have made millions in the market. While it’s tempting to believe these stories, the truth is that many of these traders end up losing everything. The market is unforgiving, and without a solid strategy and discipline, you’re more likely to fail than succeed.
The Importance of Longevity
The goal should not be to make a quick buck but to become a day trader with longevity. The only way to achieve this is through consistent learning and self-education. When I began my trading journey in 2014, my initial years were spent reading books, watching YouTube videos, and scouring the internet for resources. While self-directed education has its merits, it also has setbacks.
The Value of Mentorship
Being self-taught is commendable, but having a mentor can significantly shorten your learning curve. I’ve had moments where a simple yet profound piece of advice from a mentor made me realize how much time I could have saved if I had known it earlier. So, don’t hesitate to seek guidance; it could be the difference between success and failure.
Age is Just a Number
Whether you’re in your 20s, 30s, or even 40s, it’s never too late to start. If you begin learning in your 40s, by the time you hit 50, you could be a consistent trader, capable of extracting money from the markets. Imagine having an additional source of income at that stage of your life. It’s not just about you; the skills you acquire can be passed on to your family, friends, and anyone you mentor.
The Life-Changing Value of Trading Skills
The skill set you acquire through day trading has a value that extends beyond monetary gains. You can teach these skills to your children, spouse, or anyone you mentor. The ability to understand and navigate the financial markets is a life-changing skill that can set you and your loved ones on a path to a more secure future.
Day trading is not a sprint; it’s a marathon. It’s a journey that requires dedication, continuous learning, and the right guidance. If you’re willing to put in the effort and take it seriously, there’s no doubt that your life will change for the better. So, if you’re contemplating stepping into the world of day trading, remember that it’s a journey worth taking.
The number of trading days in a year
can vary depending on the stock exchange and the country, but here are some general guidelines for the U.S. stock market:
- Weekdays: The stock market is generally open Monday through Friday, which gives you 5 trading days per week.
- Weekends: The stock market is closed on weekends.
- Holidays: The New York Stock Exchange (NYSE) and Nasdaq are closed on certain federal holidays. The exact number can vary slightly each year, but it’s usually around 9 or 10 days.
- Special Circumstances: Occasionally, the stock market may close for special events, such as national days of mourning, but these are rare.
So, the calculation would generally be:
Total trading days = (Weekdays in a year) – (Holidays) – (Special Circumstances)
= 5 X 52 – 9 – 0
= 260 – 9
= 251
In a typical year, there are approximately 251 trading days on the NYSE and Nasdaq. However, this number can vary slightly due to the reasons mentioned above.
The number of trading days in a year for the Bitcoin/Crypto Markets
The cryptocurrency market, including Bitcoin, operates differently from traditional stock markets. Here are some key points:
- 24/7 Trading: Unlike traditional markets, the cryptocurrency market is open 24 hours a day, 7 days a week. This means trading never stops, not even on holidays.
- No Holidays: There are no official holidays for the cryptocurrency market.
- Global Market: The market is global and decentralized, so it doesn’t close for national holidays of any specific country.
Given these factors, the number of trading days for Bitcoin and other cryptocurrencies in a year would be:
Total trading days=365 days/year×1 (for leap years)Total trading days=365 days/year×1 (for leap years)
or
Total trading days=366 days/year×1 (for leap years)Total trading days=366 days/year×1 (for leap years)
So, in a regular year, there would be 365 trading days, and in a leap year, there would be 366 trading days for the cryptocurrency market.
The number of trading days in a year for the Futures market.
The futures market has a different trading schedule compared to the stock and cryptocurrency markets. Here are some key points to consider:
- Weekdays: Futures markets are generally open Monday through Friday for trading.
- Weekends: Most futures markets are closed on weekends, although some electronic trading might be available for a limited time.
- Holidays: Futures markets are closed on certain holidays, similar to the stock market. The number of holidays can vary depending on the exchange and the specific futures contract.
- Extended Hours: Many futures markets also have extended trading hours, either before the regular market opens or after it closes. However, liquidity during these times may be lower.
- Overnight Trading: Some futures contracts allow for overnight trading, but this is not universal across all futures markets.
- Breaks: Some futures markets have daily breaks where trading is halted, usually for a short period.
The exact number of trading days can vary depending on the specific futures contract and the exchange where it is traded. However, a rough estimate would be similar to the stock market:
Total trading days = (Weekdays in a year) – (Holidays) – (Special Circumstances)
For example, if there are 9 holidays in a year:
= 5 \times 52 – 9
= 260 – 9
= 251
So, in a typical year, there might be around 251 trading days for most futures markets, although this can vary. Always check the specific trading calendar for the futures contract you are interested in for the most accurate information.
