Day Trading

What is Day Trading?

Day trading means buying and selling financial assets (stocks, crypto, forex) within the same day to profit from short-term price movements. Unlike investing, you're not holding for years—you're trying to capture small price swings.

It appeals to nomads because you need only a laptop and internet. But here's the uncomfortable truth: most people who try day trading lose money. This page will be honest about both the appeal and the risks.

The Appeal for Nomads

Location Independence

• Trade from anywhere with internet
• No clients to manage
• No products to ship
• Markets don't care where you are

Theoretically Unlimited

• Your income isn't capped by hours
• Profits compound if you're successful
• Nobody controls your schedule

Complete Autonomy

• No boss, no deadlines
• Success or failure is entirely yours
• Make your own decisions

The Harsh Reality

Most Traders Lose

Let's be clear:

Statistic	Source
70-90% of day traders lose money	Multiple academic studies
Average day trader underperforms buy-and-hold	Research across markets
Majority quit within 2 years	Broker data

This isn't about discouraging you—it's about making sure you understand what you're considering.

Why People Lose

• Overconfidence in early wins
• No edge over professionals
• Poor risk management
• Emotional decision-making
• Insufficient capital
• Trading too frequently

The Psychological Toll

Day trading is:

• Intensely stressful
• Emotionally exhausting
• Potentially addictive
• Isolating

Watching money appear and disappear constantly takes a toll that's hard to appreciate until you experience it.

What Successful Traders Have

Capital

You need enough that:

• Losses don't ruin you financially
• You can survive months without profit
• You're not trading scared

A Tested Edge

Profitable traders have strategies that:

• Work over hundreds of trades
• Are back-tested on historical data
• Have clear entry and exit rules
• Manage risk systematically

Emotional Discipline

They can:

• Follow rules without exception
• Take losses without revenge trading
• Stay calm during volatility
• Walk away when needed

Time

Most successful traders:

• Spent 1-3+ years learning
• Lost money during that period
• Treated it like full-time education
• Had other income sources meanwhile

If You Still Want to Try

Paper Trade First

Practice with fake money for at least 6 months:

• Use a simulator
• Keep detailed records
• Test different strategies
• Don't use real money until consistently profitable

Start Extremely Small

When you go live:

• Use money you can 100% lose
• Keep position sizes tiny
• Focus on learning, not earning
• Scale up very slowly

Have Rules and Follow Them

Decide before trading:

• Maximum loss per trade
• Maximum daily loss
• Entry and exit criteria
• When you'll stop for the day

Keep Your Day Job

Until you have:

• 6+ months of profitable trading
• Enough savings to survive a year
• A proven, repeatable strategy
• Emotional control

Do not quit your income source.

Markets to Consider

Market	Minimum Capital	Hours (US)	Notes
US Stocks	$25,000 (PDT rule)	9:30am-4pm ET	Most accessible
Crypto	Low ($100+)	24/7	More volatile, less regulated
Forex	Low ($500+)	24/5	Leverage is dangerous
Futures	Medium ($5,000+)	Varies	Complex, high leverage

What You'll Need

Equipment

• Reliable computer
• Stable, fast internet
• Backup internet option
• Quiet workspace
• Multiple monitors (helpful, not required)

Tools

• Brokerage account
• Charting software
• Notion or journal for records
• News sources

Education (Be Skeptical)

• Books on trading psychology
• Technical analysis basics
• Risk management
• Backtesting methods

Warning: Most trading courses are sold by people who make money from courses, not trading. Free resources exist.

Alternatives to Consider

If the appeal is location-independent income without clients:

Alternative	Risk Level	Income Stability
Website investing	Medium	More stable
Digital products	Low	Builds over time
Dividend investing	Low-Medium	Passive, slower
Index fund investing	Low	Long-term growth

Who Should Consider This?

Maybe consider it if you:

• Have significant capital you can lose
• Have other stable income
• Can handle extreme stress
• Are willing to study for 1-2+ years
• Understand the odds are against you
• Have genuine interest in markets

Do not pursue this if you:

• Need reliable income
• Would be devastated by losses
• Are looking for quick money
• Have an addictive personality
• Can't afford to lose your capital
• Expect to succeed quickly

The Bottom Line

Day trading offers ultimate location freedom and no income ceiling—in theory. In practice, most people lose money, often substantial amounts. The winners are highly disciplined, well-capitalized traders who spent years developing their skills.

If you're attracted to markets, consider long-term investing instead. It has better odds, requires less time, and won't consume your mental energy.

If you still want to try trading, do it with money you can afford to lose, treat it as expensive education, and don't quit your income source until you have years of proven results.

Be honest with yourself about why this appeals to you. If it's about easy money or escape, it won't work. If it's about genuine interest in markets and you accept the risks, proceed with extreme caution.

Most traders lose. Know that going in.