If you click this, you’re probably interested in making day trading your career. You probably currently do it and are looking to try and become profitable. Or you do it already, or you’re looking to start. While this may seem like a viable option due to all the perceived notions of how easy it could be once you learn the skill and master the skill, how great it would be to be self-employed, and the luxury of being able to work anywhere with just a Wi-Fi connection, unfortunately, this couldn’t be further from the truth.
Now let me start by saying I’m a realistic optimist, and yes, I believe anything can be done as long as you put your mind and all given efforts in one direction. But there has to be some discernment when coming to that. If there are forces pushing against the end goal of you becoming successful that are out of your power, then chances are you need to find a better route. You want things to go in your favor, not against your favor.
A lot of you may immediately shut me down and shut this video off because it threatens the idea of a dream that you have that I once carried for a while. And I’ve actually had quite a breakthrough the moment I changed the end goal outcomes to something else. And now I’m far more successful than I ever thought I would have been. But if I had made that pivot sooner, I probably would have found success much earlier. And I’m here to guide you if you’re willing to listen on how you could reach success far quicker than trying to row a boat upstream.
Without further ado, let’s get straight to it. Welcome if you’re new to the channel. My name is Matt Jimenez. I’m an entrepreneur who has worked with the greatest minds in finance over the last several years. And I’m here to pour into you guys everything that they’ve poured into me.
Many years ago, I was infatuated with the idea that I could quit my job and just pick up this skill, and it’ll pay me for the rest of my life. And I can be a full-time day trader. I was completely sold on the dream. This is one of several points I want to make today — selling the dream.
Growing up, I was extremely poor in school, and I had no direction for my life. I found myself going from job to job, and in this job, I found a deep passion and desire to become successful. But my idea of success back in the day was just being able to quit the jobs and be able to work from home on a Wi-Fi connection and make endless amounts of money, meaning there’s no cap. And day trading was the only viable option that ticked all those boxes for me.
So I was completely sold on the dream of being able to have an uncapped environment where my performance is tied to my income, becoming self-employed. That was one of the biggest things that I wanted to do for myself because working from job to job, being the lower bracket of academics in school, I felt like I had so much to prove. And being self-employed was one of the biggest ways I could prove not only to my peers but also to my parents and family members that I’m successful. Also the flexibility in working hours means I don’t have to wake up at an alarm clock. I can just wake up whenever I want and just get on the computer and start making trades and make my money for the day and mind you, back in the day, I was pretty humble. Any amount of money that would pay what the job was paying, I was willing to start there. To me, it seemed so feasible and so doable because I wasn’t really asking for a lot. But, really, I was asking for a lot because most people looking to start day trading don’t have a lot. And if you want to be fully sustained on day trading, you need a lot, or you need to take an exceptional amount of risk that will always go against you. And no, that’s not just an opinion, that’s a realistic stat.
So let’s say you have $10,000, and you want to start day trading. Now, depending on the risk-to-reward, meaning how much you’re willing to lose to be able to gain, you typically want to make $4 for every dollar you risk. And that is really asking for a lot because you have to play within the parameters of what the market is giving you.
So let’s say you have a 50% win rate, which is actually really good. So you’re bound to lose, but you’re also bound to win 50/50. That means you’re a pretty good trader. But unfortunately, the losses will outpace the wins that you get. And this is what I mean. Let’s say you open the account, you put the $10,000 in there, your first trade turns out to be a loser, and you take a 20% loss. In order to get back that 20% loss, you now need to risk more because what’s left in the account is $88,000. And 20% of $88,000 is not $2,000. So you can see how automatically, by default, you’re forced to risk more if you want to just break even on a loss that you had. So this is what I mean under the notion you will always be forced to risk more. If the moment you take a loss, you must win more, meaning you have to risk more on the next trade just to get back to break even.
Now, that’s one way how the cards are stacked against you. Another reason why the cards are stacked against you is that even if you had $10,000 to put into an account that you want to manually trade, what are your bills every single month? Realistically, the average monthly spend in America is a bit over $3,000 per month. So that means that every single month, on the $10,000, you need to…
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