Is Day Trading Gambling? What I Learned After Only Knowing Swing Investing
“Isn’t day trading just gambling in the end?”
If you are interested in stock investing, you might have had that image at least once.
Thousands or tens of thousands of yen move in a matter of minutes.
The stock price drops the moment you buy.
Before you know it, you have a large unrealized loss.
On social media, some people make large profits in a short time, while others post their losses.
Honestly, it didn’t look like a world that a beginner should casually get into.
I didn’t start with day trading from the beginning either.
Originally, I did physical stock swing investing.
It was a style of buying stocks, holding them for several days to several weeks, and aiming for price appreciation.
What I felt when I started day trading was the fear I had imagined, and an interest beyond what I had expected.
And it was that making a profit and becoming good at investing are two different things.
This time, for those who are interested in day trading but are too scared to take the first step, I will write about what I learned after actually starting.
1. Is day trading gambling?
First, the image of day trading I had.
* You have to be glued to the chart
* You can lose a lot of money with a momentary lapse in judgment
* Only experienced people or full-time traders can do it
* The element of luck seems large
* It is dangerous for beginners to get involved
Even now, these anxieties haven’t completely disappeared.
However, when I actually traded, I found that day trading wasn’t just about guessing whether it would go up or down.
Stock price movements, volume, candlesticks, and the overall flow of the market.
I build my own scenario while looking at various information.
And I even think about what to do if that scenario collapses.
Of course, no matter how much I think, my predictions can be wrong.
That is why I consider day trading not as an “easy way to make money,” but as a trade that requires knowledge, judgment, and capital management.
Having an element of luck and buying and selling without thinking are different things.
However, having knowledge doesn’t mean you will always win.
2. What is the difference between swing investing and day trading?
What I was doing at first was physical swing investing.
For example, I research a stock I’m interested in, decide on a price I want to buy at, and purchase it.
After that, I hold it for several days to several weeks and wait for the price to rise.
On the other hand, day trading basically completes the buying and selling within the same day.
It’s not that one is easier.
Swing investing has the risk that the stock price will drop significantly while you are holding it.
Day trading has the difficulty of repeating judgments in a short time.
In my case, even though I had experience with swing investing, day trading was a completely different sensation.
3. What was the most difficult thing when I actually started?
What was surprising was that, more than choosing stocks, controlling my own emotions was the hardest part.
For example, when a stock I bought goes down.
“It might come back if I wait a little longer.”
I end up thinking that.
Conversely, when I make a little profit, greed kicks in, thinking,
“It might go up even more.”
And then, when the stock price rises further after I sell, I feel regret.
I think there are parts of these emotions that you can’t understand unless you actually trade with money.
Even in trades where I made a profit, there are some that I can’t say have reproducibility when I look back on them later.
Maybe I just happened to ride the flow of the market.
Maybe I was just saved by the result.
Just because you made a profit doesn’t mean the trade was correct.
This is something I have become strongly aware of since I started day trading.
4. The reason why I still thought day trading was interesting
While there is fear and difficulty, there are also reasons why I continue day trading.
That is the fun of thinking about the process of stock price movement in real time.
I especially watch semiconductor stocks.
When I look at a chart, I don’t just look at whether the stock price is going up or down, but
* Is the volume increasing?
* Are the wicks of the candlesticks long?
* What are the recent highs and lows?
* Is the Nikkei Average moving in the same direction?
* What situation does the current price movement represent?
I check these things.
At first, I didn’t even know what to look at.
But as I compare the actual price movements with the chart patterns I learned in books, my perspective changes little by little.
Of course, you can’t know the future for sure from a chart.
Even so, comparing the scenario I thought of myself with the actual price movement leads to learning about investing.
5. Can housewives or office workers do day trading?
This is a point that I think people who are interested are curious about.
“Is it impossible if I have a job?”
“Can I do it in between housework or childcare?”
“Is it difficult unless you are a full-time trader?”
Trading itself can be started even if you are not a full-time trader.
However, you need to consider the compatibility with your lifestyle.
Day trading is a trade where you check the price movement even after placing an order and make judgments as necessary.
For those who cannot check their smartphones frequently while working, or those whose schedules change easily due to housework or childcare, there are difficult situations.
Also, being able to aim for profits in a short time is two sides of the same coin as the possibility of losses occurring in a short time.
“You can make money by leaving it alone in between housework.”
“Even office workers can easily create side income.”
It is not like that.
I myself also think about what time of day I should watch the market and how much time I should spend on trading.
Instead of sacrificing daily life for the sake of investing, I think choosing a method that fits your own life is important.
6. What to do first if you are interested in day trading
If you are interested in day trading right now but feel scared, you don’t need to start trading with large amounts of money immediately.
If it were me, I would start with the following four things.
1. First, just watch the charts
Pick one stock you are curious about and observe its price movement from the opening bell to the closing bell.
You don’t have to buy anything.
Just thinking, “What would have happened if I had bought here?”
is enough to deepen your understanding of price movements.
2. Check the trading volume
Look not only at the stock price but also at how much is being traded.
When the stock price is rising, is the trading volume also increasing?
Conversely, is the trading volume decreasing?
Try paying attention to these differences.
3. Keep a virtual trading record
Even if you don’t actually place an order, try recording:
* Where you thought about buying
* Where you thought about selling
* How the stock price moved afterward
* Why it differed from your expectations
You can learn the habits of your own decision-making.
4. Decide on a loss limit beforehand
If you start trading for real, think about how much loss you can tolerate before you think about profit targets.
Do not use money for living expenses, education, or money you plan to use in the near future.
There is no need to start with large amounts or margin trading from the beginning.
It is important to first understand the mechanics and know how much price movement you can withstand.
7. If day trading is scary, you don’t have to do it
Despite writing all this, I don’t necessarily recommend day trading to everyone.
Some people are better suited for long-term or swing trading.
For those busy with work or childcare, the time spent facing the market itself might be a burden.
Investment does not necessarily require short-term trading.
However, if you are thinking, “It’s scary, but I’m a little interested.”
Why not start by just learning about it?
I myself, after actually trading, feel not only the joy of making a profit but also the fear of loss and my own inexperience.
I am still studying.
Even so, there is something interesting about observing daily price movements and learning little by little.
Day trading was a little different from the world I imagined before I started.
Before deciding “It’s impossible because it’s scary,” try learning about it first.
After that, I think it’s fine to consider whether it suits you or not.
In conclusion
There is no single correct answer to stock investment.
Whether you start day trading, continue swing trading, or just study for now, you should choose for yourself.
I would be happy if this article could be the first step for those who are interested in day trading but haven’t been able to take that step.
※This article summarizes personal investment experiences and impressions and does not recommend any specific stocks or trades. Stock investment carries the risk of losing your principal.
🌱 About this account
AI, investment, money, work, and life.
I share what I have actually tried, learned, and thought about, along with my own experiences.
Including both successes and failures, I would be happy if it leads someone to say, “Let’s give it a try.”