6 Crazy Day Trading Myths Versus Reality

There’s plenty of about day trading on various media channels, but the many different voices and opinions can make it hard to separate day trading myths from day trading reality so it’s time I cut through the BS out there because I want more successful trading challenge students and in order to achieve that, you need to have accurate information!
One podcast might talk about how day trading is a great way to make millions, whereas another YouTuber will bemoan the entire enterprise as fraudulent.
So for you, as a budding trader, how is it possible to figure out what is true and what is false?
Here, I’ll address some of the top day trading myths and offer honest thoughts about their validity.
Table of Contents
1. Day trading is a scam.
One of the biggest day trading myths is that the entire enterprise is one big, elaborate scam, dreamed up by stock promoters to drive up the prices of stocks so that the chosen few can get rich off of unsuspecting new traders’ naivety.
Truthfully, there are indeed schemes wherein self-serving stock promoters will drive up the stock price only to sell and leave many buyers in the lurch.
This is called a pump and dump scheme.
However, while many naysayers choose to latch onto this myth as being true, the trouble is that it oversimplifies things way too much.
The pump and dump scheme is one small phenomenon that takes place within day trading: it doesn’t describe the entire enterprise at large.
To say that this makes day trading a scam is way too black and white.
The main problem is that the majority of traders lose money so they lash out and claim it’s day trading’s fault, when in fact it’s just due to their lack of planning and preparation…don’t make that mistake, learn to plan using this guide
2. Day trading will make you rich.
This is a little bit of a trick statement. It is true that day trading can make you rich just like my top Millionaire Trading Challenge students and I.
But whether or not trading will make you rich is really up to you.
Are you ready to devote yourself to learning everything that you possibly can about day trading?
Are you prepared to cultivate millionaire habits? Are you humble enough to face your shortcomings?
Becoming successful as a day trader requires time, energy, and plenty of commitment. With these things, you can become quite wealthy and successful as a day trader.**
However, by simply moving around money in a brokerage account, it doesn’t instantly mean that you will become rich.
3. You don’t need any training to day trade.
It’s one of the most common day trading myths that anyone can become a day trader, no training necessary.
While technically you don’t need a certificate to get started as a day trader, to assume you don’t need an education is not only foolish, it can be dangerous, financially speaking.
To become good and effective at anything, you need practice. The best way to gain expertise is by seeking out proper training.
The Tim Sykes Millionaire Challenge was designed to offer the exact training that new traders need to find success.
Anyone can find out the basics of day trading online, but this program takes it further, offering a real life education on how to actually find success as a trader, including identifying patterns, finding a system that works for you, and learning how to create effective trading plans.
Ultimately, to assume that you don’t need training to become a trader is a myth, because while you can enter the world of trading without it, it’s unlikely that you’ll be a good or effective trader.
4. You’ll be a profitable trader right away.
Once you open your account and pick a few stocks, you’re on the freeway toward financial success.
Right?
Not necessarily.
Sure, there are some outliers in the trading world who find incredible success in a record amount of time.
Unfortunately, this is far from the wide-reaching truth.
Most traders, myself included, will experience plenty of ups and downs early in their career.
They’ll win some, they’ll lose some. However, with time and by learning from their mistakes, ultimately they begin to make reliable and steady profits.
Honestly, this is a better way to build a career. A trader who earns too much too fast is in danger of becoming cocky and not managing risk in the most appropriate way.
It’s far better to approach things slow but steady and let the profits come as your day trading prowess improves.
This is one of the top lessons that I try to impart to members of the Tim Sykes Millionaire Challenge team.
5. You can make thousands of dollars in a single trade.
OK, so this is true. You can make thousands of dollars in a single trade.**
But once again, to make a broad statement like this implies that it’s something that happens all the time…and when you’re starting with a small account it’s impossible to make that much right away…you MUST START SMALL and only over time can you make that much.
Instead of assuming you’ll make that much on every trade, you need to focus on crafting a great trading strategy that will be reliable.
Don’t be too risky in your trades, because the opposite is also true: you can lose thousands of dollars in a single trade, as well.
So it’s important to have a trading plan and study very hard to do all of your legwork to make sure you’re making as wise an investment as you possibly can.
Remember:
- Ultimately, you can make a lot of money in a single trade.
- But to assume that you will make money in a single trade is ridiculous.
- Be respectful of the risk, and always do your homework.
6. Once you learn the basics, you’ll always make money.
Studying is one of the key habits that I try to make part of my students’ routine.
Studying will always serve you well as a trader as it will expand your knowledge base and help you make better investments…but you’ll always have to adapt to the market and try to utilize strategies and patterns that are working in the moment as the market is always changing so you must always be studying/adapting.
This isn’t a matter of studying the basics once and then calling it good for the rest of your trading career.
Trust me, the market WILL change, and you NEED to be able to change with it. Knowledge is the key to being nimble as a trader, start with this free guide to stock trading.
If you don’t keep up with your trading education, you’ll eventually become obsolete. You’ll stop making money.
So this is truly a myth: to keep your success going, you need to always keep learning…you can never get lazy and if you do, you simply won’t be profitable anymore….try it if you don’t believe me.
These are just a few of the many myths surrounding day trading, I could literally write an entire book about it…hmmmm, maybe I should…but separating day trading myths from reality is key to your success in this.
However, by reviewing some of the myths and my supporting “evidence” from this post, hopefully, you’ll have a more expanded view of what is true and what is false.
By looking at day trading from a common sense point of view, you’ll learn that most of the broad statements about trading will often be more complex than a single sound byte!
Which day trading myth surprised you the most?
Leave a comment below and let me know if you promise to treat this as a marathon, not a sprint and focus on learning the game/making good trades before worrying about how much money you can potentially make later on.
Hey Everyone,
As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!
Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.
So when you get a chance make sure you check it out.
PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.
Thanks for such great information. It’s a really helpful post. I enjoyed the article. Straightforward, well written, and informative. Get the best day trading programs to become pro in day trading. visit here: https://secondbraintrading.com/
Hi Tim,
Another myth to this would be a way for rich to get richer, I seen this comment on a post, why it is true, it is also false. I say false because, it is also a way for individuals to become well off. Which is what the main part of your teaching is all about.
Hi Timothy,
What are your thoughts on the success rate of day trades for shorting versus longing? When I day traded, I always longed. The biggest challenge for me was to determine when to sell. I would usually sell at the wrong time leaving too much on the table or not sell fast enough to prevent bigger losses. When I look at charts on penny stocks, it seems that shorting would have a higher rate of success per trade. I can clearly see many stocks at unrealistic prices that are starting to rapidly go down and it seems much more obvious on when to enter. Do you think I should practice with small position sizes on shorting some stocks that have these setups to compare P/L?
You have to figure out what works best for you as no two traders are the same. Try everything. And trade small with EVERY strategy until you become consistent. Also, don’t be afraid of taking singles. Too many people try to swing for the fences on every trade. That’s just not realistic. FIND WHAT WORKS FOR YOU. Hope that helps.
I am more surprised that people actually believe these myths . Tim you do amazing work thanks for everything .
Thanks Tim!
#4 and #6. I did think if I read the basics I would be good to go. Boy was I wrong. I have made some little profits and lots and lots and lots and lots of mistakes. It is definitely a marathon not a sprint as you’ve said and I will do continue my journey and learn. I’m in it for the long haul.. #girltraders
keep the blog articles coming. My daily read in the mornings.
where do i see that stock is upgoing on promotion ? who are they ? and how could i find that stock is promoted by mailers or promoters??
Use https://stockstotrade.com
Hi Tim,
Point #6 stuck out to me the most. None of them surprised me bc I’ve been in your Millionaire Master’s Program since July 2017. I began trading in fall of 2017 and got spoiled in my thinking; while now I have to adapt to the changing markets….no where as many top % gainers per day……and that is OK. This market forces me to trade less and search for the best trades. Also I have found myself attempting to do more research on a potential trade.
So I guess what it boils down to is that I am now truly accepting that this journey “Is a Marathon, not a sprint.” Will continue on this journey from Red(where I am now) to Black(break even) to Green(consistent profits). Thanks Tim!
GOOD!
You know Timothy….sometimes I wonder about you. (smile)
You’re NUTS for sitting on the edge of that water. And I thought some of the thing I do at times is crazy because I’m from Brooklyn…lol
🙂
im looking forward to working with you. thank you. right now, I am taking advantage of the free education that you are offering on YOUTUBE, and your website.
I am on the 10th hour of your 11 hour free training.
I am reading the book that you provided a foreword: THE COMPLETE GUIDE TO PENNY STOCK COURSE
I am dedicating 1 hour a day to Penny Stock Education; more on the weekend.
I am saving my tip money to be able to either purchase a DVD set or to begin the monthly program.
GOOD!
Not surprised. I love pump and dumps, I love supernovas!
GOOD!