The Scam Of Day Trading 

"The easiest way to make money, is to tell people how to make money". Best statement ever.

Day trading is not a scam, telling people that day trading is easy.... that is the scam. Day trading has an incredibly steep learning curve and is one of the hardest things a person can do emotionally. For the very few who continue to refine their skills over many years, the results can be incredible. Get ready to be humbled because it will find literally every flaw in your armor.

As soon as he said you need 25k to be a day trader I knew his research skipped over the fact that you can use a cash account to day trade and grow $500-1k account by day trading I’ve seen people “gamble” their account to thousands of dollars risk management and proper guidance is wonderful

My husband is a day trading addict.. He lost over 150k and we are at the point of losing our house.. we have four young children and he still can’t stop. Life has been a hell this last three years because al of the stress its causing.. the children don’t have a father and my husband is gone.. people please stay away from daytrading and pray for us 🙏

My biggest win is when I stopped day trading! Day trading is gambling…

If something is too good to be true…it usually is.

This video should be labeled “stay away from day trading gurus” not day trading is a scam, This morning I woke up hit this gym, came home showered made coffee, went over pre market news, and made $218 in literally less than 10 minutes after the market opened on 2 option contracts on Microvision, then called it a day for work. Rest of my day went well not checking my phone every minute. Lol “Day trading” doesn’t have to be stressful if you’re disciplined and consistent with a good set of rules. The real scam is working at a shit job that you hate waking up and going to every morning, & dealing with shit ppl every day. That’s soul draining. That’s the real scam. Now when it comes to day trading there’s plenty of strategies you can implement in order to mitigate loss. You just gotta do trial and error just like anything else you want to get good at.

The reason traders in comments want you to day trade, is because its YOUR money they live on.

Day trading isn't about "feelings". If you trade with "feelings", "beliefs", "lucks", or "hopes", you will lose.

thank you so much for this explanation. I appreciate it so much. Love you.

I have been trading for about 11 months now and just about every trade backfires and slaps me in my face. Nearly impossible for me to catch more than a few points. I try to do top-down analysis but it doesn't work for me. I say to myself, clearly, I'm in the 90% that lose money, so I open a demo account, do my analysis, then take the opposite of what I would normally take and get the same result. I'm starting to feel hopeless

found you on Instagram, new favorite youtube page. Keep it up!

Very good video. Probably the best on this topic.

just cause you cant do it doesnt mean no one can do it...

Broke it down well and cleared up a lot of misconceptions

I don't think it's fair to say people should completely avoid day trading. But you should definitely know that it is very very difficult to succeed and it takes a long time of learning, trial and error, and persistence to succeed. It took me about 5 years to begin to see consistency. As Mikey says, emotions play a HUGE role in day trading. You may think that you're disciplined and you have self-control, and you have the mental willpower to cut your losses quickly, blah blah blah... but the market will humble you real quick the moment you break rules. You MUST MUST MUST have a big passion for this niche to succeed, you must go through some very dark moments before you make it through this tunnel. I love day trading though and I want to do it for the rest of my life.

This is a really good video, good insights there brother

Day trading is very risky and if you throw too much money in there you risk getting kicked out. It's good job if you know how to spot bullish stocks with their lows and highs, but don't expect to make over a thousand a day, and if you do, thankfully you weren't kicked out of the stock for not keeping a balance.

when you are afraid to trade or to hold a position, means that risk is too high and have to immediately close your positions. Do not ask me how I know...

great video! could have used this talk 10 months ago

great content! would like to see the entire process of buying/owning an apartment/ multi-family units

Everything he said was correct, BUT only applies to people who don’t know what’s going on. A professional will make it hard to blow an account because he knows exactly what he’s looking for & has protocols (specific instructions) for when things don’t go as planned. It should indeed be boring, if it isn’t you’re not ready yet 🤷🏽‍♂️. Great video btw.

Very well said! The emotions are definitely one of the main reasons a lot of people fail at day trading. Swing trading and investing long term are so much easier on yourself and the people in your life.

The odds are even LOWER if you want to become a professional athlete. Trading can change your life. I think he’s just upset he never had the gumption to day trade and to CONSISTENTLY keep going even when you’re losing money. He’s speaking to all the people that don’t manage their risk and blow up their accounts. Trading isn’t gambling if you have a tested and proven strategy, you have to let your system play out the odds.

Daytrading itself is not a scam. But there are a lot of scammers in the industry. My experience and many others have proved it is possible to make money in the markets

Good video. I try day trading for 3 monts...when I was young. Il lost 36% of my money ! :) Now I'm an investor,a lot less stressful ! I receive dividends each month. Good video.

Two thumbs up good content, verifiable by those in the know, great presentation, video recommended. Long-term investing Concepts is the right way to invest.

As a successful Day Trader I love watching these videos. While it is gambling, a successful day traders goal is to control emotion, it isn't to 'ride that high'. If he/she is 'riding that high' then they have already failed. I can totally understand your paranoia. After all 90% of traders fail, and it's hard for the 90% to accept that 10% can do what they cannot. I really wouldn't recommend day trading to anyone who thinks it's a get rich quick scheme. It's a marathon, not a sprint. Edit: a word

Investing is gambling, it’s just holding and hoping. Day trading requires discipline but if the stock doesn’t go what you want, you can just get out. You control when you sell. Most people aren’t disciplined and that’s why most lose

Daytraded 4 years. It’s extremely difficult to be consistent based on technicals. And fundamentals are BS. It’s not a very rewarding experience. It really is gambling, and takes advantage of the dopamine highs of success. And the depression of losing trades draws you into bad trades to make up the losses. In other words, your emotions are constantly being jerked around. Add to that fact, that big banks and hedge funds use complex algorithms and machines to assess the markets and react almost instantaneously, that it’s almost impossible to get ahead of an event or major move without chasing the price action. The odds are stacked against you. Buy and holding is really the only way to make money. But, that’s not even a guarantee, as most people don’t even know how to properly value a company based on its financials. Buying stuff you don’t understand is stupid. You’d be better off investing in your education, or buying real assets, such as real estate or collectibles, or even commodities. Simple things that you know and have experience with. Wall Street is really crooked, folks. I’d stay away from the market casino, because that’s all it really is.

Love it. Great content.

WELL SAID!

I like the adrenaline of day trading. I've been educating myself with books for some years now and started day trading in November. There's a big difference between reading and practicing on a simulator. What you read must be putt in practice otherwise you're just shooting planing to fail. First day was terrible but I got the hang of it fast bks I like what I do. Day trading is not a scam. Those who have discipline, manage risk, and learn from their mistakes survive in this game.

I'm a profitable day trader.. But becoming profitable isnt easy. Expect to lose money at first. It took 2 years of alot of study, tinkering, ups and downs to finally make 20% in a month. For me, its not about the money.. Its about the trading plan and execution. One more thing.. Long term investing is a gamble as well.. just like anything in life. It works for some not for others.. Day and swing trading has made me more money than long term investing by a long shot. On that note, Day trading is not for everyone. Also.. I dont get a Dopamine rush day trading. Wish I did though lol. Thanks for the video and happy endeavors!

He is right, odds are stacked against you. I Lost 85% of my original investment my first year, he is correct. Second year though, I am up 250% from original investment, and climbing. Dont listen to these guys, they are not traders, online opinion slingers. Practice Risk Managment, have Rules, control (be mindful) your emotions. Greed is the greatest killer to traders, be mindful.

Amazing content Were you aware of how helpful you’d be to people financially when you were skating or did that come to you later on? Also what is your opinion on swing trading?

Dude, incredible. I like this content, its a very mature talk on the subject. I also like the way you present your content, without boring songs on background, without click-bait/keep-watching-bait. I wish there was more videos like this on youtube. Congrats, guys.

A balanced approach would have been more effective. Yes influencers hype day trading to gain followers and ruin some lives in the process but some people just trade in different timeframes and basically use swing trading techniques on 20 min or five minutes charts. The people who hype day trading cause people to not realize swing or trend trading might suit them better. Also if you can't swing on technicals you sure as hell can't trade a 2 minute chart on the same technicals. Swing trading is a slowed down version of day trading that is more forgiving. You can use stop loss orders day trading.

I don’t like subscribing, but I will because your content seems informative and I like your personality

You should only be trade if you genuinely love the idea of trading and the way the markets work. DON'T TRADE JUST FOR MONEY BECAUSE YOU WILL FAIL.

I love mikey taylor and i used to be obsessed with his DVS skate more part, but he is completely wrong here. Yes there are alot of “selling the dream” scams but they are not all scams. Day trading is very possible and i know this because i’ve been day trading for years and i lost a lot of money. But now i am finally profitable because instead of worrying about the money i started to put every effort into actually learning the skill and back testing my strategies with a paper account then gradually sizing up my position sizes so i could learn to control my emotions. Now looking back at it i wish i wouldve taken it seriously at first instead of just thinking i was just gonna get rich quick. And also if you have a cash account you can make as many day trades as you want as long as you wait for the funds to settle. Day trading isn’t a scam at all its just people don’t actually take it seriously as if its not like any other skill or craft. So the people that fail at it are actually just scamming themselves. Im a big fan of mikey taylor but this made me loose a bit of respect for him. I actually plan on making a video about certain “gurus” that are actually selling a scam and i will also make videos on reasonable day trading strategy’s that are somewhat easy to learn and if followed with proper risk management, can easily make you profitable

This is a great video! Thanks for making it. I have been trying for 2 years in futures trading. I have made a good amount, then lost it just as quick or faster. Markets are all over the place. My reason is to make extra money and escape the day job jail. I have zero emotions when I trade, except anger, half the time. subbed.

That Pattern Day Trader rule only applies to margin accounts, right? So if you're not betting on credit you don't have to keep 25k on hand?

You're right daytrading is stressful and hard but not impossible. It is very rewarding and life changing if you master it. But you will have to dedicate yourself to it 100% cause it has a big learning curve and you need to be well aware of you're emotions and keep them in tack. So if someone would ask me how they should invest? then i would agree what you're saying with investing long term

I agree with every single point you made, except for the pattern day trader rule, it does not apply to cash accounts. But this is in no way an argument in favor of day trading. Most people would lose money. Those on RU-vid showing their success -if honest- are only part of the 20% that are profitable. And even those odds do not reflect reality, because if I have to guess, only about 1% get rich from day trading.

If it wasn't Mikey dropping knowledge, I probably wouldn't have watched as many videos as I have. Skater to skater relationship is unparalleled. Would Commune ever make a video about the different stages of potential properties to invest in? Example: Should I purchase a tax deed home vs. a foreclosed home vs a home on the market?

You can loose your whole account in a couple of months. A good day trader just waits for entries. When they are their we jump. If it's not their don't. You win good you loose. It's an investment. Like you said. Not fun. If you want to have a rush from trading and making big mo ey. Vegas would be a better choice.

Yes there are a lot of misconceptions about day trading. Which you addressed kind of. Day trading is real, but don't expect to be making any money before 2-5 years. Day trading shouldn't be emotional, and it can be quite boring. It's a lot of waiting around and being patient. Most people don't last long enough to become an actual day trader. They quit after they realise how hard it is, and that it's not a get rich quick scheme. It's a difficult skill, but most people think that there is no skill involved, or they can become a master after 6 months of learning. What other skill can anyone become a master of after 6 months. It makes no sense. If you're not extremely passionate about day trading and are willing to dedicate years of hard work, then day trading is not for you.

Am 1 min in the video and liking it, 3.4k subs only with that great production quality! no wonder ppl lose money

Thank you for this, I was thinking about getting into day trading but not anymore.

What are the success rates of real estate investing? opening a restaurant? drop shipping business? hell, even a college degree? Who says you can’t invest for long term and day trade? You don’t have to risk much to find your edge.

One thing I found is if you can't consistently grow a 100 dollar account and build it consistently what makes you think you can grow a 100k account. Do not throw big amounts of capital in if you know your discipline is not good. All I can say to try save someone from screwing up

You have to humble yourself when you trade. Remove all emotion from it. Focus, study and try and learn as much as you can. Every failure is an opportunity to learn.

You’ve really got your finger on the pulse. Few, if none, have such a rational understanding of the situation. Thank you for your sanity and sober evaluation. Can you please give your evaluation of the crypto community and mindset?

How about this for a video idea, how the hell do you join forces financially with a wife/husband/partner? My wife and I keep smashing our heads against each other trying to figure out how to do this together.

I can’t make it, therefore it’s a SCAM 😂

Agreed! Day trading or Option trading lose money at the end. You get old quickly staring on the monitor bcoz of the emotion in the market. Option trading is even worst regardless what strategy you use bcoz nobody can predict the market.

great content

Day trading changed my life ... 94% of day traders lose money , we are the 6%

What a great distinction of positioning between wealth and richness. Being wealthy is a marathon, and getting rich is a sprint. Food for thought

Excellent job, Novacyber -I'm delighted you're out there fighting these jerks. We must do everything possible to protect the elderly and the general public from these vile con artists! You deserve it!! Big up, brother, you deserve the Nobel Peace Prize for keeping us safe......!!!!! !!!!!

Whats the point of this video, for me to quit my 4 year trading joruney because of some scumbag...or do i keep looking for best a+ setups to trade and to profit

Day trading is legit for those who have the patience and the ability to ignore videos like this one.

The reasons he discusses are the obstacles I had to overcome over the past 8 years. Mark Douglas (R.I.P.) eventually helped me become consistently profitable. Day trading is not for everyone, just like any other difficult thing in life. Edit: exactly what the videos says at the end applies to day trading- it’s a long term mentality. Many trades, with weighted risk-reward, not a quick thing to accomplish. Enjoy the journey.

Got a good laugh out of this. Thanks man haha

Great video, Thanks. Though in my opinion I will change the label of the video .

It is not for speculation long term. Because you need to earn at least 8 to 22 %. From the stuff you buy and resale in the time frame that you feel important to receive that monies

These are the ppl that want u to keep ur stocks during a downturn so they can borrow them to short them (put options)

I generally agree with most of the points mentioned in the video, day trading is incredibly problematic, and even more problematic is the crazy way it is presented nowadays, but I do need to point out one thing in your video that does not add up: It is the moment when you are talking about those 25k that a daytrader is (technically) legally obliged to have in their account in order to trade. Well, that is just weird because if that was the case, there would not be that many young amateur traders losing their savings. Because most young people do not even have those 25k. You can open a trading account with many brokers out there, and you really do not have to have 25k to do so. You just need some starting capital, some people start with 1000 dollars, for example. I can speak from experience because I have tried day trading (unsuccessfully). I could place many trades a day, having with only 700 dollars in my account. I am really not sure if you are talking, in this case, about some specific sort of trading, exchanges, brokers, or some special/specific assets that require you to have 25k to trade. But even if there is such a situation when you need those 25k to trade, it is a pretty irrelevant piece of information because nowadays you can trade having a lot less money. There are countless exchanges and brokers out there that allow you to trade with an incredibly low amount of money in your account. And at the same time, they even allow you to use astronomically huge leverage. This is the reason why so many ordinary people trade these days. Because the entry barrier is actually incredibly low, almost everyone can afford it. So your argument about those 25k is either wrong, bound to a specific asset or a situation, or irrelevant, taking into account the current situation where almost everyone can trade. One more thing regarding a different argument of yours: I heard that the amount of losing day traders is actually even higher than 80%, I heard that it is about 90%, some studies even talk about 98%.

passive index investing. it's just that easy to start. great vid!

Thank you.

Totally agree

It appears you haven't day traded or haven't done it successfully. As a day trader I don't lose more than I am willing to because I sell before loss is large. 1% gains reinvested at 100% compounds to extraordinary amounts. So a few trades a day with a 1% gain and your done for the day. You don't have to stare at the charts alllll day. And to get around the pdt rule you can day trade crypto, no rules and open 24/7.

Great video

I'm watching from the Philippines. I'm lucky that I've watched it during my early trading days.

You’re gonna have a big part of my financial success thank you

I dont like daytrading but i do on the other hand love developing algorhytmic day trading strategies and backtest them. You need to enjoy it not just try to earn money

Listen, you can participate in markets a lot of ways and become successful. The long term fundamental guy isn't going to be the hyper scalper, the backside low float guy isn't going to become the international arb guy who isn't going to be the quant guy building models. .People that seriously trade markets participate in the way that fits they're style of trading and where they have found success. This fella really discredits himself with his statements and I'm guessing if asked specifically in detail how he makes money in markets he couldn't tell me.

I’ve been trading for one year now. Honestly I’ve made few dollars. And margin call a lots of times due to when I entry it goes away from the direction I want it to go. And when I said okay maybe it’s a wrong order and I switch it still doesn’t go my way I feel like the broker is scamming my moves.

This is the best video I’ve ever heard as a day trader. Very very profound. I see more ways to eliminate risk now. Thank you

One of my most favorite persons in the world, great content as usual Mikey! Love from PH

Long term is fine if u have money in the first place, but if ur starting small trading is the way

good stuff

Ahhh, but 100% of PROFITABLE day traders make money, so just be one of THEM!

Be wary of anyone who speaks in absolutes. Day trading is not a scam it is a skill set that can be developed it takes a lot of discipline and is not for everyone. You should invest long term first and understand that it's not an easy thing to learn to day trade many people make a living day trading but its not for everyone

For the most part, you are correct. I've been a career trader for well over 20 years and I know these young guns promoting all their "awesome" systems or training do NOT actively trade. That would also include some on here, not so young. ;) I can usually tell right away if someone actively trades or are consistently profitable by their demeanor. Most "traders" aren't even using the right "market relevant" tools to be profitable long term. Now I am speaking specifically about day trading... I've made that my life pursuit and it is not for the faint of heart. Only if a person develops the right attitude and disciplines, coupled with the right tools will they be profitable long term.

Is it too late to start day trading futures at 24? That’s what I asked myself, now that I’m watching this video, I don’t think it’s a good idea.

Also the pattern day trader rule ONLY applies to margin accounts, not cash accounts

Book more on profiting from dividends than betting on stocks.

Day trading isn't a scam, it's just harder and takes more work than people expected. When they fail then they call it rigged or a scam.

day trading is not a scam, it is complex, and it takes years to develop the mental intuition and psychology to be successful. Investing in another hand, is MUCH simpler but still challenging..

I hate this argument because people only say it’s a scam because of how statically improbable it is. But what’s crazy it’s that it’s just like going to the NBA most dream of it and spend a lot of time chasing this knowing the statistical probability yet there’s no blink of an eye now I will agree long term investing is better than day trading but don’t undermine people trying this path too. The people who say it’s a scam or gambling are the same people who wouldn’t stay outsaide during lightning because you know even though statistically improbable you can potentially get struck so how can you not believe someone can make money daytading?

Very Small trades in one stock, covered calls weekly and buying into the trade buy selling puts is now u do it.

Trading is a very difficult profession, although it comes down to very simple activities. The problem is that to master it you have to focus on something completely different. You have to know yourself. Few want this.

It’s tough but possible, and life changing as well.

It all just comes down to the ancient argument passive investing vs active investing

Thank you

Day trading is a not a scam, its a business and a game that can be mastered with experience and discipline. Otherwise all investments and businesses are scams as they all require the push and the pull of purchases and sales. Many people will never go anywhere with employment combined with investment. They will stay in the small box life has alotted them.

What if your using day trading as a stepping stone to buy real estate?

“Is that mikey taylor?” *clicks to find out Hears voice Mentions skateboarding. “Fuck yeah thats him”