The following is a guest blog post:
Day trading has become overwhelmingly popular in recent years, and the trend is definitely understandable. Day trading is marketed as the most profitable way to go about investing. However, there is a dark side here that is seldom talked about. At the end of the day, for many, making the decision to start day trading could just be the biggest mistake of their lives. Today, we’ll talk about 5 reasons that day trading may prove to be a big mistake.
Losses Could Be Massive
When you talk to people in the day trading industry, you often hear about how big gains could be. However, the truth is that any time big gains can be seen in the market, there is also the potential for big losses. In fact, in the investing world, it is a well known fact that if you’re going to go after big gains, you’re going to have to take big risks. At the end of the day, day trading is one of the most risky forms of investing and often leads to large losses of capital among beginners.
Day Trading Is Down Right Unhealthy!
When we think about ways to make money, it’s not common for us to think about the health risks associated with the job. The truth is that day trading is indeed a very unhealthy process. At the end of the day, human beings are emotional creatures, largely driven by a fear of loss. When day trading, that fear of loss is compounded on a regular bases, increasing stress levels. Studies have proven that high stress situations over prolonged periods can have severely negative effects on vital organs like our hearts, lungs, and even brain! Unfortunately, day trading isn’t the type of business that will bring you the peace and stability that’s often associated with a long, healthy life.
Trading Is Not For The Social Butterflies Of The Group
At the end of the day, socializing is incredibly important to most people. Our relationships with family and friends are among he highest valued things in the world. However, in the world of day trading, trading ultimately becomes number one. This is not like a regular day job. To be successful, you have to allow the market to dictate your schedule, and in many cases, be willing to work far more than you would in just about any other career. At the end of the day, this cuts into time for friends and family, reshaping the social life of those who get involved.
Trading Is Not A Business!
Often times, I’ve seen day trading referred to as a business. So, I’d imagine that many beginners get into the market with the idea that they are building a business. However, that’s not at all the case! Building a business eventually allows you to step back and create passive income. At worst, even if the income never quite becomes passive, you’ll have the ability to take a vacation, take days off when you’re sick, and more. However, that’s not the case with trading. Day trading is never passive and will never be passive, nor will day trading pay keep your finances stable when you’re sick or on a trip. At the end of the day, day trading simply is NOT a business!
Scams Are Everywhere
Finally, day trading is an industry that’s littered with scams. No matter what market you chose to trade within, there are scam brokers, push button systems, and signaling services that are working to take your hard earned money. So, if you ever do decide that you want to try out day trading, make sure to watch for the scams!
The truth is that day trading isn’t for everyone. Yes, it is possible to make large amounts of money. However, that’s generally something that’s done by experts. The harsh reality is that day trading is a very tough thing to do from any angle you look. Trading can take a toll on finances, social interactions, health, and ultimately your overall well-being. So, if you’re considering getting started, consider the risks, that in this case, are far beyond simply a financial burden.