It’s the age of day trading. The market is HOT right now.
The trend of turning to day trading during times of economic uncertainty is nothing new. The financial crash of 2007–2008 brought a huge influx of new traders to the market … including SteadyTrade co-host Tim Bohen!
Now, the same thing’s happening. But like most things during the COVID-19 pandemic, the volume’s been turned up.
There are a ton of new traders … So is that a good thing or a bad thing? Today, Tim and co-hosts Kim Ann Curtin and Stephen Johnson talk about this important and timely topic.
2020 Day Trading Stats
Recently, the Wall Street Journal published an article called “Everyone’s a Day Trader Now.”
The article’s behind a paywall. But the key point is that a huge number of people are turning to day trading as a result of boredom, isolation, and employment shifts — and many are failing.
As the article reports, in the first quarter of this year, online broker Robinhood had three million new accounts in the first quarter of 2020 … E-Trade had 260,500 new accounts in March alone.
How are the new market participants affecting the market? Is it a time of great opportunity, or is it a recipe for disaster?
SteadyTrade: Three Generations of Day Trading
The SteadyTrade crew represents three generations of traders.
- Tim is the literal market veteran, with more than a decade of experience under his belt.
- Stephen’s a moderately experienced trader who’s been in the market for a few years. He’s experienced ups and downs, but he’s finding consistency.
- Kim is a total newbie and still in the research phase of her trading career. She understands the emotional side of trading but is still learning the nuts and bolts of the penny stock niche. She’s not yet an active trader.
In the episode, you’ll get perspective on the market and all these new traders from their three distinct points of view.
The Real World of Day Trading
A lot of newbies think day trading is easy. That’s a mistake.
True, there’s a low bar of entry. Pretty much anyone with a laptop, an internet connection, and a brokerage account can start trading fast.
But that doesn’t mean you’ll start making a ton of money right away.
In spite of what some recent runners might have you believe, stocks do not always go up.
Tim cautions about stocks like Genetic Technologies Limited (NASDAQ: GENE), one of the “worst” stocks out there, and how they can “paralyze” traders.
As Stephen puts it, you’ve got to approach trading with a sense of discipline. He notes that “trading is an internship to the hardest job in the world.” His take is that you’ve got to dedicate yourself to learning the process before you can find success in the actual job.
There’s good news in that, though. Since many traders don’t take the time to educate themselves on the ways of the market, your diligence could pay off.
Kim believes that learning and listening to trading lessons is the key to separating yourself from the many who will fail. “If you listen, even a little bit, you’re going to be the outlier.”
Is It a Good Time to Start Day Trading?
Given the articles and discussion featured in this episode … is now a good time to start trading?
Kim admits that she’s having fears amid the current market volatility.
Tim and Stephen offer advice from a place of experience, including how ultimately, some things don’t change in the market. Like how patterns play out, what works, and what doesn’t.
Stephen talks about the difficulty of living through different market environments and how you need to continuously adapt to stay on top of the game.
You’ll walk away from this episode with a much better understanding of the market right now … and how to be a smart trader during these trying times!
“Everyone’s a Day Trader Now” — Wall Street Journal
What Do You Think?
What do you think about the day trading surge? Whether you’re a new or experienced trader, we want to hear what you think or what questions you might have.
Remember: if we choose your question as an on-air topic, you could win a SteadyTrade mystery gift box. Leave a comment below or on YouTube!
Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders.
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