The Unspoken Truth of Being A Day Trader…



It’s end of the week. Let me tell you a great story. There was a boy named Rakesh. He was hyper active, over smart and his accumulated energy needed an outlet. Testosterone was free flowing and he hit puberty much before it was due. His pent up energy was very difficult to handle for his parents so they sent him to an All Boys Hostel (oops). Over the years, things got worse. Rakesh was becoming an oversexed weirdo.


After finishing college Rakesh returned to the city. There he met a friend Ashwin. Ashwin saw the aggression and he knew what needs to be done. Ashwin took him to a Strip club. Rakesh was waiting for this all his life. He thought he got everything that was missing in his life.

Also Check: Want to be a better Trader ? Start playing chess.

Just Imagine how Rakesh felt. It was orgasmic. It was wrong, but orgasmic.

That’s exactly how I felt when my first day trade turned profitable. Rakesh was me and I wanted to make money , Ashwin was my broker and together we went to the Bombay Stock Exchange. Was Ashwin a bad guy ? No. He was just doing his job. But was he stupid in suggesting day trading ? Yes. Was Rakesh stupid ? Capital YES. So they were kind of made for each other. 85000 Rs. was my first day trading profit.

What was the first thing I did when I booked my profit.Call my mom?– No. Get a shirt for my dad? – No. I picked up the calculator multiplied 85000 with 200 trading days per year and 10 years of trading and I thought – Warren Buffet, I am coming for you.

Also Check: How to Teach Your Brain to Trade

THE BEGINNERS LUCK SUCKER PUNCH
In Gambling, this thing is called Beginner’s Luck. More often than not the first gamble makes you money. Gamble of any kind. I tried Horse Racing too. It applies everywhere. Why does that happen ? Why does God hate his children ? I think God has a lot of work to do. All work and no play makes Jack a dull boy. So God gives you the first profit. He gets bored so he wants to spice things up and see how you cry and dance at the same time.
My dance had just begun. Crying would come much later.

WHAT IS DAY TRADING REALLLLLY ?
Imagine playing Super Mario on your computer. Now imagine playing Level 9 where Mario gets to the princess. To make matters exciting, let Mario run at 10 times the normal speed. When Mario is on the run, switch off the screen at random intervals. Just for fun. That is day trading in a nutshell.
But it’ not all that bad. There are a few advantages of Day Trading ;

GREAT ACTING SKILLS
Over the period, as you capital erodes you develop acting skills. Obviously you can’t tell your partner or your friend that you are sick addictive gambler who lost money and time both over the last few days or months. You learn to make the poker face. You get so good at lying that a Lie Detector is scared of you. It doesn’t want to lose its job. Better yet, you learn to smile even if you are bleeding inside. It makes you a tough guy. Bankrupt, but tough

STORYTELLING SKILLS
You will lose on most days. You will make the same mistakes over and over. But you can’t say that to yourself. So you make up stories. One day, you will blame the Fed. One day, you will blame the RBI. Then the PIGS, the Fed ( again ), IIP, Inflation, Freak Trade, unexpected results…blah blah blah. This is how you get creative. You keep doing this long enough, you can be a fiction writer. Since all fiction is lies anyway.
NEGOTIATION SKILLS
No MBA course can teach you this. As you capital erodes, you will seek more and more margin from the Risk Management guy to trade more . He will say no. One day he will start swearing too. But you will persist. You will beg, plead, fall on the floor and start crying, but you will get the job done. You won’t take No for an answer. That’s a good skill to have. Also, sometimes you will delay the cheque, switch off the phone and go underground. They can use you in Infrastructure companies tongue emoticon when the bank calls for money.
Now let’s look at the downside.

BLOOD PRESSURE AND HIGH CHOLESTEROL.
Some Yogic guru said, life is counted in breaths. In day trading your emotions will swing 20000 times a day like a yoyo. You will scream and you will panic alternatively. Your breath will jump from slow to fast like a drunkard walks. That’s the birth of cardiovascular diseases – Unstable breathing pattern.


Also Check: Trading Wisdom - Quotes From Market Wizards

OBESITY
On bad days, you will eat chocolate or something fatty loaded with butter. That kind of food makes people happy. On good days, you will eat all of that plus you will drink beer. Sometimes you will also take your friend along to tell him how rocking your life is. So net result is you will get FAT. Fat as a hippo and your sweat will stink of weird sauces from the burger you eat a lot.

SMOKING / DRUGS
People start smoking to handle stress. Then smoking causes more stress. Then more smoke. This goes on till your breath starts smelling like a cigarette ashtray. One fine day you will get tested and your doctor will hold your cardiogram in his hands and say – Haha, it’s a miracle you are still alive.

FIGHTS WITH SPOUSE/ GIRLFRIEND
When you lose money ( which will be often ) you will fight with your wife and your kids. You will make them miserable. If you keep doing this long enough, your wife will run away with your friend and your kids will call you uncle when you chat over Skype. Why skype ? That’s what will happen when you lose custody after a divorce. The court will take them away from you.

Also Check: Cramer's Twenty-five Rules for Investing

REHAB WILL REJECT YOU
One day you will realize what shit you have done by not listening to me and you will admit yourself in Rehab. But the Rehab will reject you because you are bankrupt. Then you will call me for help. Guess what ? I will reject you too.

PS – I totally agree I have blown things out of proportion. But it’s always better than you blowing money. The odds of being a successful day trader are as low as being a grandmaster in chess ( you cant do it ). I do not have the same view about short term trading and investing. But that’s a topic for another day.

Hope you enjoyed. If you liked it…Share it.

Cheers



Article by: Rahul T
https://friendswithzero.wordpress.com/


(Rahul is a passionate blogger and writes about how to be a better person, a better friend, a better parent, a better student, a better lover and about getting better in almost every area of your life. At times he blogs on random topics. You can check out his blog friends with zero from this link)
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3 comments

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satya
AUTHOR
February 1, 2016 at 12:36 PM delete

facts all of the above are facts.. i wasted 4 longyears on this

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Puru ji
AUTHOR
February 6, 2016 at 11:36 AM delete

Thats the reality and an amazing write-up!

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samir ahuja
AUTHOR
March 13, 2016 at 4:02 PM delete

Thats very true . I have wasted my 15 years and still going on.

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