Let me tell you something nobody wants to hear, if you're day trading crypto, you're probably losing money. Even if you think you're up or making regular profits, you are still losing money, and I will explain.
I know like 50 people who tried day trading crypto and after a few weeks, they lost more money than they had when they started. I noticed they all started the same way, made some money on a few trades, felt like professionals, then slowly (or sometimes very quickly) gave it all back to the market plus more.
Here's why day trading is basically a trap designed to take your money.
Every trade you make costs you money. Trading fees, spread, slippage - it adds up fast, let's say you're paying 0.1% per trade, doesn't sound like much right? But if you're making 10 trades a day, that's 1% in fees. Do that for a month and you've paid 20-30% of your portfolio just in fees.
So before you even factor in whether you're good at trading, you're already down 20-30% just from costs, You need to be right way more than you're wrong just to break even, think about this for a minute.
Most people don't realize this until they actually sit down and calculate how much they've paid in fees. It's usually way more than they thought, when you're day trading, you're not competing against other retail traders like yourself. You're competing against:
Trading firms with millions of dollars and teams of analysts
Bots that can execute trades in milliseconds
Market makers who see all the orders before you do
People who do this 12 hours a day as their full-time job
Even if you avoid trading fees by using limit orders and stuff, there are other ways you're losing money, and one of them is taxes. Every trade is a taxable event in most countries. You might be up on your trades, but then get hit with a massive tax bill because you were making profits on paper.
By the time you factor all this in, you need to be right like 60-70% of the time just to not lose money. And that's hard. Really hard.
Trade HEre
