Due to my other activity, I almost forgot this blog and "dedicated" myself to it. Fret not, I am still active here, however, I am also grateful that my other activity has furthered my self-actualization, especially in non-technical skills such as interpersonal communication as I admit that I still lack this skill. Okay, no time to waste, let us jump into the title question which is the possibility to trade daily and still profit from the trade.
Before I explain further, we have to look back at the types of traders section which I had explained previously in this blog. In a nutshell, there are four types of traders who fill the field of the market where those four types of traders which are scalper, day trader, swing trader, and position trader (I., 2022) would determine the results of your trades and trade daily falls under the day trader and scalper.
Regarding the question of this article, I classify it into two categories and make two analogy which is a rabbit and a turtle. For further explanation read below here.
Possible (If You Are A Rabbit)
It is possible to trade daily and profit from it if you can act fast and take a loss gloriously when the market is not in your favor. By being a rabbit you automatically become the embracer of failure just as what I read from Timeular (2022) in which the writer wrote that failure is such an important part of life because it is how we learn, grow, and become better. I strongly agree with the statement as in daily trading anything can happen from big profits to big losses.
For easier understanding, let us delve more into trades the example of a person who trades daily where he/she from day 1 to day 4 gains consistently profit but on day 5 that profit can be gone due to the market conditions. However, because of his/her strong psychological conditions and rationality to act fast (and also probability plays a role), he/she gains the profit back in days 6-7. This is an example of a rabbit who acts fast based on his/her system.
Not Possible (If You Are A Turtle)
It is certainly not possible if you cannot act fast and need more time to think before you act just like a turtle who walks slowly. Honestly, either being a rabbit or a turtle both are good. These are just the personality issues that each of us is different and that is why there is long-term and short-term trading. As for why I tell you that being a turtle is not possible to trade daily is because when the market changes fast and you need more time to think before you act in the market it means you are just "donating" your money to the market.
The illustration of a trader who is also a turtle is when the trader got shocked by the fast movement of the market that confused or even does not have a gut to make a quick decision following his/her system, then what the trader will get is just a doom to his/her trading account in which that trader cannot keep up with the movement of the market. Eventually, the turtle trader is more suitable for long-term trading.
Conclusion
We as humans have different traits and of course, a certain person can do what the ordinary cannot do. If I connect it to the types of traders, then, all of them are different which means a day trader may not comfortable with what the swing trader usually does and the contrast can happen. With the rabbit and turtle illustration you should be able to learn that a rabbit can run fast but can also be tripped while running, as for the turtle the pace of movement is slow but the turtle has a higher probability than the rabbit to reach the destination safely.
Written by Andre I.
Reference
I., Andre. 2022. 4 Types Of Forex Traders. Retrieved from Forex Jed. (Accessed 19 March 2023): https://www.forexjed.com/2022/01/4-types-of-forex-fraders.html
Timeular. 2022. Why is quick decision-making important?. Retrieved from Timeular. (Accessed April 8, 2023): https://timeular.com/blog/why-quick-decision-making-important/#:~:text=To%20make%20quick%20decisions%2C%20you,be%20completely%20wrong%2C%20that's%20ok!