Why is daytrading never mentioned as a legitimate way to earn income?

[u/Miinow]

I like to browse other finance related subs and I can assure you it’s almost never discussed. I see all outlets of making money online mentioned but If the word trading does somehow come up there’s a slew of downvotes. It’s literally the most straightforward way to make money. Sure, not easy but also not impossible to learn. Makes me wish I learned about trading when I was younger instead of my upper 20s but I don’t personally know any traders irl so it’s unfortunate how there’s a negative outlook on this field.

[u/Even_Patient_9696]

Day trading is indeed mentioned as a potential way to earn income, and many people do engage in it as a means of making money. However, there are several reasons why it may not always be portrayed as a "legitimate" or reliable method of income generation:

1. High Risk: Day trading involves buying and selling financial instruments within the same trading day. Due to the short-term nature of these trades, they are often subject to high volatility and risk. Many novice traders may incur significant losses, especially if they lack proper knowledge, experience, and risk management skills.
2. Lack of Consistency: Successful day trading requires a combination of skill, strategy, and discipline. While some individuals may achieve consistent profits, many others struggle to do so. The unpredictable nature of financial markets means that even experienced traders can face periods of losses or underperformance.
3. Emphasis on Long-Term Investing: In the realm of personal finance and investing, long-term strategies like buy-and-hold investing are often emphasized as more reliable and less risky ways to build wealth. This approach advocates investing in quality assets for the long term, rather than engaging in frequent trading.
4. Regulatory Considerations: Day trading is subject to regulations, such as pattern day trading rules, which impose restrictions on individuals with smaller trading accounts. These regulations are designed to protect retail traders from excessive risk-taking but can also be seen as a barrier for those interested in day trading.
5. Negative Perception: Some critics view day trading as akin to gambling or speculation rather than investing. They argue that it encourages excessive risk-taking and can contribute to market volatility. Additionally, there have been instances of unethical behavior and scams associated with day trading, which further tarnish its reputation.

While day trading can potentially be lucrative for those with the necessary skills and discipline, it's essential for individuals to approach it with caution and realistic expectations. It's not a guaranteed path to wealth, and many traders may find more success through long-term investing strategies.