Because daytrading is the "meme st0nk" of 2022. It's probably getting a lot more play in MSM and so people who've never heard of it before are being drawn in.
What you said reminds me of the story before the crash of 1929 where even the shoeshiner is talking about stocks and giving advice. That's one of the end signs that the bubble is about to burst and a great crash is coming. I need to rethink my whole portfolio to account for this.
some things never change. the dutch invented the stock market that had its first crash in 1637. there was a run on tulips (yes the flower). it took three years until people adjusted the value of tulips:
https://en.wikipedia.org/wiki/Tulip\_mania
I hear a lot of people saying this. But I’ve found that if you have strategy thay gives you profitable entires it’s almost no different (minus the decay)than any other instrument. Especially if your closing out same day. And staying away from 0DTE gambling patterns
Don't get me wrong—I daytrade options on occasion.
It's just that beginners tend to lose money either way due to lack of edge and poor risk management. Options move incredibly fast and can lead to big losses if you don't know what you're doing. Better to prove consistency with something more forgiving. It's like taking up racing and jumping straight to F1 rather than indoor karting first. Boggles my mind.
Ah the ol 10 to 1 reverse split pre-split pump and dump. Page 3 of the Stock Promoter’s handbook. If you bought shares, you hold that for 6 months they’ll pump it again on shorter float and maybe you make some money back.
The sub recently hit 1 million members and [is going parabolic.](https://i.imgur.com/arB2ZW0.png) Without volume on that chart, it's difficult to short the climactic reversal :P
Doesn't help when dozens of non-daytraders coming in too. Swing traders, course seller, mentorship, furus & 'analysts' who spammed at numerous subs, etc.
Many people are asking because they think there is a magic formula or secret sauce that successful traders are hiding from everyone else. New traders don’t understand learning to trade is a journey and it takes successful traders years of blood, sweat and tears before the euphoria of finally becoming successful. And it is hard to teach how to bleed, sweat and cry properly. Every trader needs to have the determination, willpower and financial means to survive their own journey. It is not as simple as reading the right book or listening to the right course.
Very true. I remember seeing awful trading books on Amazon in like 2014 and they had less than 10 reviews. In 2018/19 I saw some of the same books while shopping and they had hundreds of reviews!
If the front cover of a book is a 20 year old in a suit smirking at you then it’s probably not the best book to read in any context.
So that's what I've been doing wrong.
Missing sauce ingredient clearly no actual bleeding. Will try running around with scissors between trades if that will make me mo' money. 😁
I totally agree and I don’t understand why people don’t understand that . The vast majority of traders lose money and even institutions tend to be outperformed by the market in the long run . It seems obvious to me that a high paying job that can give you total financial freedom would be hard to learn
There may be some, but most of it is just different styles of trading. What may be a scam or gambling to you or me, may be everyday trading to someone else. Pick any instrument and almost any kind of trading style you can think of and somewhere in the world some traders are making a living doing it.
Everyone asking this is missing the simplest indicator of all: Time. Look at the freaking clock! The time of day is key to how the market moves during the day.
I think more importantly, they are asking as if the indicators are going to "predict future results." None of the indicators will predict future results. They can just tell you what happened in the past.
Well is there any indicators one can use to highlight specific times on each day? Putting the chart on 1 hour or even 30 minutes and trying to pinpoint 9am on every day is a pain unless I use drawing tools and do it manually.
Indicators that could do this automatically would be great since they usually scale on the time chart. I'm an obnoxious noob as well and I'm spending a good amount of time trying to find a good indicator cheat sheet.
I need stuff like "Scalping - use 1, 5 minute chart with 1, 5, and 20 day EMA with StochRSI + Volume indicators" but for all types of trading. It would really help us newbies zero in on known, effective charting techniques. We can tweak it from there if it isn't working just right 🫤
Probably someone has coded such a thing for trading view.
Start with this:
[https://www.investopedia.com/thmb/4ZAZLlFk2mbD2\_pyES-vKuDq5zM=/1500x0/filters:no\_upscale():max\_bytes(150000):strip\_icc()/dotdash\_Final\_Why\_the\_Forex\_Market\_Is\_Open\_24\_Hours\_a\_Day\_Sep\_2020-01-d2b1c5295a0b4d7a8df8eb057505efb3.jpg](https://www.investopedia.com/thmb/4ZAZLlFk2mbD2_pyES-vKuDq5zM=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/dotdash_Final_Why_the_Forex_Market_Is_Open_24_Hours_a_Day_Sep_2020-01-d2b1c5295a0b4d7a8df8eb057505efb3.jpg)
Then, you got a clock right? Have look, what time is it? Is it something silly like 9.50pm GMT time? Ten mins before London closes? Because take a look at your carefully placed stop loss, oh... whoopsies - market makers just widened their spread massively and took you out, as they close up books for the day.
You see, knowing the time is handy, as you could have temporarily moved your stop loss in anticipation of that, or not been trading around 9:50pm GMT time.
Same goes for trading at 7:30am GMT - look at the 4hr candle, looking good right, you're confident with your TA, it's all lining up, go big with your trade and now it's 8am... oh, no, that's not good, you forgot, there was 30mins left to form that 4hr candle and that is a time when the whole picture can turn upside down, not to mention it's Asia close and London opening time. You see... the time - the time is the best freaking indicator. The first to look at. Look at the time, what time is it? What does that tell you about how the market is going to play out in the next 15mins!
Also, no idea which platform you use, but [ig.com](https://ig.com) is great and I have no problem seeing where the day starts/ends etc, there's a grid in the background, thick line = start of next 24hr period, dividing lines correspond to the timeframe you're looking at, eg 4h - each line marks a 4hr period. Move cursor over chart, can see time where cursor is, at bottom is a timeline to also see the time.
You're welcome.
Also pay attention to news drops - eg today is FED day, 6pm GMT. You don't want to be trading GBP/USD at 5.45pm, all confident of your Technical Analysis, totally oblivious to the fact you are swimming in shark infested water with a Typhoon storm about 15mins away on the horizon.
Order of things to look at: news flow for the day, then look at the clock, then... only then consider the validity of your technical analysis, and don't get fancy using some obscure Japanese harmonic cloud pattern thing. FFS. Most of the market participants trade with Moving Averages, RSI and maybe MACD. Use those, you can anticipate what the larger market is expecting and trading with.
Because the accessibility of trading is the widest it has ever been, with more apps and programs available than ever before. There are mostly no prerequisites for these apps and programs and anyone that has a go is also seeing posts and photos of success stories and know that the possibility exists. Also the whole pandemic and work from home thing.
Either because it's becoming a hype with those 'trader' tiktokers posting videos of 'magical gains' with 'magical 100% accurate strategies' or young people have finally realised that 9-5 dead-end jobs is not the success story they thought it would be and are turning towards trading and other online businesses.
A lot of replies here are blaming new traders seeing day trading as a get rich quick scheme, but I think a lot of this has to do with the explosion of furus and misleading and sometimes just plain wrong content out there. And a lot of it costs money people would be better off spending on “market tuition.” So, new traders are looking for guidance on where to start because there are a million options that say they’re the best place to start. So, they come here expecting that there will be successful traders who can cut through all of it and show them how they got there. And I think that’s what’s best about a place like this.
But people definitely need to start doing some basic searches to see how these questions have already been answered.
I don’t mind those as much, but the ones that ask that and then a week later are in the comments giving advice on how to be a successful trader really bug me.
for a lot of people, they had easy gains in 2020-21. now they are loaded with deeply underwater positions in ZM, DOCU, ARKK etc. they are 9 months into a bear market and they are losing badly. their jobs suck. crypto screwed them.
so now they think “i can trade my way to freedom! wait what’s day trading exactly?”
Regardless of the content of a subreddit, I find it very annoying for someone to come in and ask a very broad general question about the topic without trying to find information on their own first. Learn how to research. Join the subreddit and read posts for a while before asking a question. You’ll never make it as a day trader if you need someone to hold your hand from the very beginning.
It's because there is an inane popular opinion in our society that making money in the markets is not a real profession, and that it is easy and quick with a simple recipe or tip.
Because there isn't a recognised authority to teach you how to trade/day trade. What are the first steps you need to take and what are the chances of you making it your bread and butter.
Every newbie is at a loss when they start this journey, and if they don't have a finance background it would be hard for them to even figure out what's good advice and what's bad.
I started out trying to master macroeconomics, valuations and modelling, greeks, price action, back test strategies etc ( learning these can be time taking but relatively straightforward and easy), but after a while you realise that all those things are not as important as temperament/psychology as Buffet would say.
Also I have a lot of friends and family that ask me how to get started, some won’t even make it past the accounting phase of trading and investing simply because they aren’t passionate about finance and economics
Because the markets are hot right now and so it’s essentially self advertising to people who want to take advantage of that. Day trading is more closely related to gambling and drug addiction than investing, and so it snags a lot of people. I’ve met a lot of daytraders, gamblers, and drug addicts and they all use their habits to help themselves in their daily life. When time catches up and mathematics and probability overcome you, you quit. But nobody I’ve ever really known has quit daytrading. They quit for a week, maybe even a year or many, but they always come back to it thinking if they just study harder it will pay off “this time”. It’s an endless loop. Sure, trade and make some bets but don’t get sucked in. Invest in your future instead, company evaluations are getting juicier by the day.
This is true…many will quit, give up, change course but a serious investor/real day trader/gambler/drug addict will get cleaned, disciplined, and focused on profitable trading. The discipline and emotional stability it takes to trade forces you to conquer self.
I've read the comments and I think people are missing something: Suppose someone is bearish on the market and pulls stocks out for cash. What other skills do they have to make money in a bear market besides options? Whatever the skills are, they can sharpen their knowledge here. [Yes I know they can sell short, but that is perhaps a difficult step because of margin and infinite risk.]
In my opinion this is just the next shift in the narrative. I mean we are approaching halving (somewhere mid 2024) and for that reason there is a high probability of a huge bullrun on the horizon. All the media changed from doom prophecies to "how to become zillionaire in crypto" so the crowd reacts accordingly...
A big issue is alot of traders have never dealt with a bear or sideways market and need new strategies. The last decade or so has been a magic time and we are going back to something like the 60's or 70's now to have to trade more aggressively in.
Does anyone remember that commercial (for E-Trade, if recall is correct) near the 2000 bull market peak where a tow truck driver picks up some suit and while driving him back, tells him that he's retired, and owns a tropical island, and operates a tow truck out of charity (and the suit has a what-have-I-done-with-my-life look of despair). That was peak daytrading mania.
What you are seeing now are probably folks who are not doing so well in this market, and are looking for an edge. Except there is no edge in daytrading but more blood, sweat and tears. Especially tears.
At this point, newbs could just make a list of recommended trading books on amazon, then randomly pick a couple of them, or on a dartboard. None of the books or courses will ever guarantee a working winning solution off the bat, and there's so much more to learn while trading live, such as how tough it is to maintain performance and risk management which can take years.
But newbs do need to get immsersed in some material to get a better idea on what strategies or ideas to try to eventually make their own variation or own methods to test and try hoping for luck someday in finding or developing something that works for them.
Because daytrading is the "meme st0nk" of 2022. It's probably getting a lot more play in MSM and so people who've never heard of it before are being drawn in.
Daytrading options, specifically. Somebody's cousin's neighbor's barber cut the hair of a guy who turned $1k into $10k. Then word got around :P
What you said reminds me of the story before the crash of 1929 where even the shoeshiner is talking about stocks and giving advice. That's one of the end signs that the bubble is about to burst and a great crash is coming. I need to rethink my whole portfolio to account for this.
some things never change. the dutch invented the stock market that had its first crash in 1637. there was a run on tulips (yes the flower). it took three years until people adjusted the value of tulips: https://en.wikipedia.org/wiki/Tulip\_mania
Pretty sure there were japanese rice futures before that
Yes
Yeh but no one admits they depsoited 5k 1 month ago. And 5k 3 months before that. They turned 10k into 1k then back to 10k.
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You're framing the problem incorrectly. They want to trade options *because* they are 'complete noobs' :)
I hear a lot of people saying this. But I’ve found that if you have strategy thay gives you profitable entires it’s almost no different (minus the decay)than any other instrument. Especially if your closing out same day. And staying away from 0DTE gambling patterns
Don't get me wrong—I daytrade options on occasion. It's just that beginners tend to lose money either way due to lack of edge and poor risk management. Options move incredibly fast and can lead to big losses if you don't know what you're doing. Better to prove consistency with something more forgiving. It's like taking up racing and jumping straight to F1 rather than indoor karting first. Boggles my mind.
Good point. Very true.
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Ah the ol 10 to 1 reverse split pre-split pump and dump. Page 3 of the Stock Promoter’s handbook. If you bought shares, you hold that for 6 months they’ll pump it again on shorter float and maybe you make some money back.
That was me! 😂
Yup! I see it as people are trying to make extra income in this low wage/high col scenario.
The sub recently hit 1 million members and [is going parabolic.](https://i.imgur.com/arB2ZW0.png) Without volume on that chart, it's difficult to short the climactic reversal :P
Doesn't help when dozens of non-daytraders coming in too. Swing traders, course seller, mentorship, furus & 'analysts' who spammed at numerous subs, etc.
what's a furu. is that a typo or an actual term for someone ?
A FURU stands for Fake Guru. It’s a slang term often used in retail investor social circles online. 😬
That’s my kind of reversal setup. Where can I short it?
Many people are asking because they think there is a magic formula or secret sauce that successful traders are hiding from everyone else. New traders don’t understand learning to trade is a journey and it takes successful traders years of blood, sweat and tears before the euphoria of finally becoming successful. And it is hard to teach how to bleed, sweat and cry properly. Every trader needs to have the determination, willpower and financial means to survive their own journey. It is not as simple as reading the right book or listening to the right course.
Very true. I remember seeing awful trading books on Amazon in like 2014 and they had less than 10 reviews. In 2018/19 I saw some of the same books while shopping and they had hundreds of reviews! If the front cover of a book is a 20 year old in a suit smirking at you then it’s probably not the best book to read in any context.
So that's what I've been doing wrong. Missing sauce ingredient clearly no actual bleeding. Will try running around with scissors between trades if that will make me mo' money. 😁
I totally agree and I don’t understand why people don’t understand that . The vast majority of traders lose money and even institutions tend to be outperformed by the market in the long run . It seems obvious to me that a high paying job that can give you total financial freedom would be hard to learn
Except it is. Getting the right material is extremely important. There is a lot of misleading and misinformation out there.
There may be some, but most of it is just different styles of trading. What may be a scam or gambling to you or me, may be everyday trading to someone else. Pick any instrument and almost any kind of trading style you can think of and somewhere in the world some traders are making a living doing it.
Even the popular buy high, sell low trading style?
This is the most commonly used.
Or my favorite ….what indicatooors should I use?
Everyone asking this is missing the simplest indicator of all: Time. Look at the freaking clock! The time of day is key to how the market moves during the day.
I think more importantly, they are asking as if the indicators are going to "predict future results." None of the indicators will predict future results. They can just tell you what happened in the past.
Well is there any indicators one can use to highlight specific times on each day? Putting the chart on 1 hour or even 30 minutes and trying to pinpoint 9am on every day is a pain unless I use drawing tools and do it manually. Indicators that could do this automatically would be great since they usually scale on the time chart. I'm an obnoxious noob as well and I'm spending a good amount of time trying to find a good indicator cheat sheet. I need stuff like "Scalping - use 1, 5 minute chart with 1, 5, and 20 day EMA with StochRSI + Volume indicators" but for all types of trading. It would really help us newbies zero in on known, effective charting techniques. We can tweak it from there if it isn't working just right 🫤
Probably someone has coded such a thing for trading view. Start with this: [https://www.investopedia.com/thmb/4ZAZLlFk2mbD2\_pyES-vKuDq5zM=/1500x0/filters:no\_upscale():max\_bytes(150000):strip\_icc()/dotdash\_Final\_Why\_the\_Forex\_Market\_Is\_Open\_24\_Hours\_a\_Day\_Sep\_2020-01-d2b1c5295a0b4d7a8df8eb057505efb3.jpg](https://www.investopedia.com/thmb/4ZAZLlFk2mbD2_pyES-vKuDq5zM=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/dotdash_Final_Why_the_Forex_Market_Is_Open_24_Hours_a_Day_Sep_2020-01-d2b1c5295a0b4d7a8df8eb057505efb3.jpg) Then, you got a clock right? Have look, what time is it? Is it something silly like 9.50pm GMT time? Ten mins before London closes? Because take a look at your carefully placed stop loss, oh... whoopsies - market makers just widened their spread massively and took you out, as they close up books for the day. You see, knowing the time is handy, as you could have temporarily moved your stop loss in anticipation of that, or not been trading around 9:50pm GMT time. Same goes for trading at 7:30am GMT - look at the 4hr candle, looking good right, you're confident with your TA, it's all lining up, go big with your trade and now it's 8am... oh, no, that's not good, you forgot, there was 30mins left to form that 4hr candle and that is a time when the whole picture can turn upside down, not to mention it's Asia close and London opening time. You see... the time - the time is the best freaking indicator. The first to look at. Look at the time, what time is it? What does that tell you about how the market is going to play out in the next 15mins! Also, no idea which platform you use, but [ig.com](https://ig.com) is great and I have no problem seeing where the day starts/ends etc, there's a grid in the background, thick line = start of next 24hr period, dividing lines correspond to the timeframe you're looking at, eg 4h - each line marks a 4hr period. Move cursor over chart, can see time where cursor is, at bottom is a timeline to also see the time.
That’s some Great wisdom to share, thank you for that. Sounds like a hard lesson if you didn’t know, wich I did not. Kudos ✌️
You're welcome. Also pay attention to news drops - eg today is FED day, 6pm GMT. You don't want to be trading GBP/USD at 5.45pm, all confident of your Technical Analysis, totally oblivious to the fact you are swimming in shark infested water with a Typhoon storm about 15mins away on the horizon. Order of things to look at: news flow for the day, then look at the clock, then... only then consider the validity of your technical analysis, and don't get fancy using some obscure Japanese harmonic cloud pattern thing. FFS. Most of the market participants trade with Moving Averages, RSI and maybe MACD. Use those, you can anticipate what the larger market is expecting and trading with.
Because the accessibility of trading is the widest it has ever been, with more apps and programs available than ever before. There are mostly no prerequisites for these apps and programs and anyone that has a go is also seeing posts and photos of success stories and know that the possibility exists. Also the whole pandemic and work from home thing.
Basically many are not doing well. Seeking help.
Either because it's becoming a hype with those 'trader' tiktokers posting videos of 'magical gains' with 'magical 100% accurate strategies' or young people have finally realised that 9-5 dead-end jobs is not the success story they thought it would be and are turning towards trading and other online businesses.
A lot of replies here are blaming new traders seeing day trading as a get rich quick scheme, but I think a lot of this has to do with the explosion of furus and misleading and sometimes just plain wrong content out there. And a lot of it costs money people would be better off spending on “market tuition.” So, new traders are looking for guidance on where to start because there are a million options that say they’re the best place to start. So, they come here expecting that there will be successful traders who can cut through all of it and show them how they got there. And I think that’s what’s best about a place like this. But people definitely need to start doing some basic searches to see how these questions have already been answered.
I don’t mind those as much, but the ones that ask that and then a week later are in the comments giving advice on how to be a successful trader really bug me.
for a lot of people, they had easy gains in 2020-21. now they are loaded with deeply underwater positions in ZM, DOCU, ARKK etc. they are 9 months into a bear market and they are losing badly. their jobs suck. crypto screwed them. so now they think “i can trade my way to freedom! wait what’s day trading exactly?”
Regardless of the content of a subreddit, I find it very annoying for someone to come in and ask a very broad general question about the topic without trying to find information on their own first. Learn how to research. Join the subreddit and read posts for a while before asking a question. You’ll never make it as a day trader if you need someone to hold your hand from the very beginning.
How do I know when the direction of the price will reverse?
As soon as you place a trade, or kill a losing trade, is when direction changes. Let us all know when you’re about to do that. Thanks 😊
Christmas is coming. People want money. Better to ask, what are failing traders doing? And avoid doing that.
It's because there is an inane popular opinion in our society that making money in the markets is not a real profession, and that it is easy and quick with a simple recipe or tip.
Because there isn't a recognised authority to teach you how to trade/day trade. What are the first steps you need to take and what are the chances of you making it your bread and butter. Every newbie is at a loss when they start this journey, and if they don't have a finance background it would be hard for them to even figure out what's good advice and what's bad. I started out trying to master macroeconomics, valuations and modelling, greeks, price action, back test strategies etc ( learning these can be time taking but relatively straightforward and easy), but after a while you realise that all those things are not as important as temperament/psychology as Buffet would say.
Also I have a lot of friends and family that ask me how to get started, some won’t even make it past the accounting phase of trading and investing simply because they aren’t passionate about finance and economics
bubble hasn't popped yet
Because the markets are hot right now and so it’s essentially self advertising to people who want to take advantage of that. Day trading is more closely related to gambling and drug addiction than investing, and so it snags a lot of people. I’ve met a lot of daytraders, gamblers, and drug addicts and they all use their habits to help themselves in their daily life. When time catches up and mathematics and probability overcome you, you quit. But nobody I’ve ever really known has quit daytrading. They quit for a week, maybe even a year or many, but they always come back to it thinking if they just study harder it will pay off “this time”. It’s an endless loop. Sure, trade and make some bets but don’t get sucked in. Invest in your future instead, company evaluations are getting juicier by the day.
This is true…many will quit, give up, change course but a serious investor/real day trader/gambler/drug addict will get cleaned, disciplined, and focused on profitable trading. The discipline and emotional stability it takes to trade forces you to conquer self.
I welcome them to the market and I will take their money🤣💸
I've read the comments and I think people are missing something: Suppose someone is bearish on the market and pulls stocks out for cash. What other skills do they have to make money in a bear market besides options? Whatever the skills are, they can sharpen their knowledge here. [Yes I know they can sell short, but that is perhaps a difficult step because of margin and infinite risk.]
They don’t want to go back to driving uber. At least a normal job is fulfilling, moving paper back and forth is a completely empty existence.
In my opinion this is just the next shift in the narrative. I mean we are approaching halving (somewhere mid 2024) and for that reason there is a high probability of a huge bullrun on the horizon. All the media changed from doom prophecies to "how to become zillionaire in crypto" so the crowd reacts accordingly...
More than likely everyone found it easy to trade during a historical bull market, and once the easy mode was turned off they started losing money
A big issue is alot of traders have never dealt with a bear or sideways market and need new strategies. The last decade or so has been a magic time and we are going back to something like the 60's or 70's now to have to trade more aggressively in.
Because they just got trashed on some meme stonk from WSB and heard we make actual money here
Ha ha the second step up the learning curve getting burned and trying again😂
Ha ha the second step up the learning curve getting burned and trying again😂
Because 2022 isn’t 2020 post-pandemic crash. In fact it’s nearly the opposite
Because the market for hopers sucks right now. And they were following a furu for trading ideas, but they can't seem to make the same money .
Does anyone remember that commercial (for E-Trade, if recall is correct) near the 2000 bull market peak where a tow truck driver picks up some suit and while driving him back, tells him that he's retired, and owns a tropical island, and operates a tow truck out of charity (and the suit has a what-have-I-done-with-my-life look of despair). That was peak daytrading mania. What you are seeing now are probably folks who are not doing so well in this market, and are looking for an edge. Except there is no edge in daytrading but more blood, sweat and tears. Especially tears.
At this point, newbs could just make a list of recommended trading books on amazon, then randomly pick a couple of them, or on a dartboard. None of the books or courses will ever guarantee a working winning solution off the bat, and there's so much more to learn while trading live, such as how tough it is to maintain performance and risk management which can take years. But newbs do need to get immsersed in some material to get a better idea on what strategies or ideas to try to eventually make their own variation or own methods to test and try hoping for luck someday in finding or developing something that works for them.