Why I don't Day Trade: 4 Factors that Influence My Decision

I was sitting in my office and glued to my screen. I was watching every single candlestick on the 3 minute chart. Just waiting for AMD to hit my target. I knew a winning trade was a sure thing because it worked the previous two weeks.

"I cant lose" I thought (famous last words).

For these 30 minutes, I forgot all about my regular paycheck from the corporate grind. I wasn't focused on the reports or spreadsheets.

All my focus was on my mental ability to control a candlestick's direction with my mind. I was attempting mind control second by second, "go down AMD" I was sending through mental telepathy.

Then bam, the stock blew right through my stop loss. I didn't have mind control over the candles after all. The foolproof 'can't lose strategy' that worked so well for a month, never worked again.

Losing isn't unique to day trading, but after I left the corporate world a few years ago to trade full-time, I don’t day trade very often. People assume that since I don’t day trade that means I’m totally against it. That's not quite true; let me explain.

It's not just about the market; It's about YOU- Trading isn't one-size-fits-all. It's about how much time you're willing to invest in front of the screen, mastering candlestick psychology, and back trading to master technical analysis. Successful and profitable trading comes from a plan you believe in and strategies that match your lifestyle

Yes, day trading can be profitable, but for me it was a full-time job, demanding my presence and attention. 

When I was already at my desk, it was an viable strategy. I was already at my computer, I could look for the perfect setup and take trades.

If you are already busy, are you going to consistently show up every day and watch the charts? Are you going to study and back trade on a regular basis? Trading can be active or trading can be passive. What works for me, might not work for you!

The challenges of a tight timeframe- On a shorter timeframe, your stop loss is on a tighter leash. This shorter timeframe is another reason I don't enjoy day trading. You need to keep up with news, who is speaking today, and many times none of that matters because a single news flash causes a crazy wick that ruins a trade in seconds. It doesn’t matter if the news was even true. I’ve found that longer term trades are easier for me to manage in most cases. Smaller timeframes, smaller stops mean I need to be right quick and it felt more like I needed luck, which equates to gambling in many ways.

When the market trends, day traders thrive- Day trading works best (for me) in trending markets. Just like any other strategies everything works just not all the time.

Remember 2020 when the Fed's cash injections caused the V bottom correction and everyone, including their grandparents were day traders?

In a trending market, a trend following strategy works. But what happens when the market stalls, or if it dips and inflation becomes a concern? Those same day traders, either pivoted, or went back to their other ‘real’ job. If you want to be a day trader you need to have multiple tools in your trade plan.

When the market is trending, this is a great time to be a day trader! Don't close your mind from ever day trading, just wait for the right conditions. Keep doing what works, just don't think you should double down on a strategy that stops working.

The lure of 'good enough' trades- You're sitting there, waiting for the perfect setup, and boredom creeps in.

Suddenly, 'good enough' trades start looking tempting, and you're making moves out of impatience rather than insight. 

When you get bored, you take trades you don't normally would not take, because you aren't even around to see the charts.

The best way to avoid good enough and what works best for my lifestyle are taking longer timeframe trades and to trade high probability math-based options trading, It's a game of probabilities offering a more passive income stream that fits my life. Just because day trading doesn't fit into my style it doesn't mean anyone else should or shouldn't trade a strategy.

Day trading might promise bigger profits, but it also has potential for bigger losses. For me the time commitment to watch the charts every day, candle by candle impacted my most precious commodity—time.

We have a finite amount of time in this journey we call life. I want time freedom over larger profits. What's right for me might not be right for you. I choose to take trades that have high probabilities of winning. With many options trades I don't even have to be totally right. That's why selling puts is my favorite strategy. When the time is right, you just might see me taking day trades and posting them in our discord! But until I see a nice trending market, I'm sticking with my passive and profitable strategies!

If you need help reach out to me, join our community. I’ll see you here next week, hopefully I’ll catch you in our Discord much sooner than that!

Happy Trading Good Kids!

Disclaimer: this is NOT financial advice. I’m basically just some dude on the internet who’s been trading a while, and I use the stock market as my primary source of income. None of this is financial advice it’s purely educational!