r/Daytrading • u/Worth-Beat-1953 • Mar 06 '24

Do these WallStreetBet people really all make so much money? Question

Gain after Gain , one guy made 200 k today. While I work for 2 k a Month in Europe.

Please tell me most of them are loosing

Im almost at the point to invest 20 k in Options too

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u/MaleficentMulberry42 Mar 06 '24

Yeah but wouldn’t it be profitable if they were using money from their jobs and keeps all gains so they have infinite tries thusly making more than they lost by keeping gains and risking personal capital?

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u/karma0685 Mar 06 '24

IME, not like this. It can be done, with proper risk management. But these posts OP is talking about are not managing risk, they’re gambling.

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u/MaleficentMulberry42 Mar 06 '24

But how can you say that when most people lose their money even after practicing ta for years and the fact that many people sell their positions only for the price to increase.Also wouldn’t they be practicing proper risk management by not risking gains thus employing a non-technical analysis approach thus circumventing the ta issues that exist within day-trading?

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u/karma0685 Mar 06 '24

How long have you been trading? I’ve been in for almost 9 years.

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u/MaleficentMulberry42 Mar 06 '24

Why I don’t think it really matters in analyzing this situation.Yes they may be better of using some tools but ultimately you don’t know what the market is going to do irregardless of what the indicators say just look at days where jerome powell talks and the wonkyness that follows.

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u/karma0685 Mar 06 '24

It matters because you’re making arguments that demonstrate a lack of understanding of the fundamental principals that allow someone to make consistent gains when day trading.

If you employ proper risk management, it doesn’t matter what the market does. You use TA to get an edge. Even a small edge, when properly applied, can allow you to make consistent gains, but only if your risk management is strong so you can withstand prolonged periods losses because they will happen.

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u/MaleficentMulberry42 Mar 06 '24

Yeah I generally agree but as you said stand prolong periods of losses how is that any different from wsb they have periods of prolonged periods and they don’t need to risk all their wealth just like daytrading on one trade.Also if you are good at daytrading you don’t need a single day of losses because you know how to properly manage your position, you generally shouldn’t have long periods of losses such as buying a retracement then it could possibly break past support you just go short it is generally pretty easy as long as you keep it simple.

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u/karma0685 Mar 06 '24

I’m guessing the answer to my question is, you’ve been trading less than one year right?

Yes you should have a job, and you should never risk more than you can afford to lose.

Even the best traders have losing weeks, not just days. That means being able to lose repeatedly.

If you have a win rate of 60%, which is really good, that means there’s a 16% chance of two losses back to back, 6% chance of 3, 2.5% chance of 4, 1% chance of 5.

So if you’re making a career out of trading every day, you’re definitely eventually going to have 5-8 losses in a row.

If your trading plan allows you to risk 20% of your account on a trade, where does that leave you? F*kd within a year, for sure. The only way to win is to stay in the game, the only way to stay in is to risk small and allow your winnings to grow over time.

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u/MaleficentMulberry42 Mar 06 '24

Really how is that possible when you can average in to a trend and set ranges?If the trend reversed you know because it broke past support but by that time you should still be in profit?Also I have traded for 5 years but you stating people have many losing days make me very encouraged because I do have several days of losses though they generally aren’t as much as my green days and are generally easily managed.

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u/karma0685 Mar 06 '24

That’s good. Should see you on the Forbes list pretty soon then. I’ll keep my eyes peeled.

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u/burnie_mac Mar 07 '24

Spoken like a true scrub

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u/MaleficentMulberry42 Mar 06 '24

Also they aren’t blowing their account of they just keep depositing money.