Can You Get Rich Day Trading?

This is a hot topic that is always an early and frequent discussion in the trading world. The question is: Can you get rich quick trading the markets? And we just couldn’t wait to discuss this controversial topic. I mean, who doesn’t love the idea of becoming rich with very little effort? It’s what dreams are made of! But, is it a reality? And could trading be the mode of transport to the millionaire lifestyle so many of us crave? We have to say that, in our opinions, nearly all, if not all, “get rich quick” schemes are just that - schemes. They can be very tempting, be advertised in a way that is so appealing and seemingly reliable. But the cold, hard truth is that most are fraudulent, unsustainable, and grossly under-deliver on their promises.

Even the lottery - that’s a dream right, to hit when the Powerball is at an impressive high amount! But the chance of winning is so miniscule and then when it actually does happen for the very rare few, they did not earn that money through blood, sweat and tears, it was essentially an incredibly lucky gift. And so the person did not have time to become a millionaire in his or her choices, actions, or life management. Which, more often than not, leads to the money coming and going in their lives in a matter of a few short years. In general, we’re not so sure that there are any reliable methods that one could get into to actually get rich quick.

So many of the get rich quick scams promise large sums of money for little or no personal investment but then often fail to deliver. This is a very predatory practice in our trading world as well. Especially with the really cheap classes that are offered, it appeals to people who are looking for fast and easy money, however the old saying is true “you get what you pay for right?” These scammers use enticing language and big, bold, beautiful claims to attract victims into a commitment. Those selling these dreams are usually getting rich quick while they offer a temporary high that is more often than not going to fizzle out for the consumer. However, I do get the early appeal of the offer! And there will always be a market for these types of flashy promises. It’s all over really comparable to the beauty industry, health and fitness…it’s more important than ever to be mindful of the products you're actually investing in. There’s a quote by publisher & poet Felix Dennis that will resonate with most of us: “You’ll never get rich by working for your boss.” This is so true, right?! The work of a 9-5 job without true investment or personal skin in the game is a paycheck but very rarely brings wealth. However, most of us are creatures of habit and we’ve been conditioned since elementary to follow along, literally stay in line, so it’s no surprise that a small percentage of our population generate all their wealth from the work of the majority.

Businessman & author of the incredibly successful Rich Dad Poor Dad series, Robert Kiyosaki had a great point on this subject when he stated:  “People say ‘I want to be rich.’ The question is, ‘Are you willing to do what it takes?’” I love this so much because it is so on point! Being rich takes effort, failing, more effort, failing again, and on and on until eventually successful outcomes start to stick and compound. If you study them, the wealthiest in the world are incredibly persistent and are unphased by temporary setbacks. Their dedication and drive is more powerful than any roadblock. Rarely was their road to success clean and clear, but rather, their refusal to quit was overpowering. That, to me, seems like the real divider between the true achievers and the dreamers. Same guy, Robert Kiyosaki, also said: “The only difference between a rich person and a poor person is how they use their time.” Yet another excellent quote about dedication. You want riches? Figure out the method that works for you and then put in the work relentlessly until you start knocking down some goals! And then just show up every day and take on the next levels as you reach them! 

So then, is trading a viable method to choose for wealth acquisition? That’s the next part of this! If you ask google if one can get rich day trading, the response is “Most of the time, day trading is not profitable, but it can be profitable.” I mean, that’s an accurate statement right there. Studies have shown that more than 97% of day traders lose money over time and less than 1% of day traders are actually profitable. I mean, those numbers are rough. But, as we have pushed through this arduous process, we are not overwhelmingly surprised. The accessibility of day trading is super easy making it even more dangerous for underskilled and overzealous newbies looking to start trading. Day trading looks easy enough when you see a beautiful clean example of a textbook execution, or in a YouTube technical analysis tutorial video. But, learning an edge for one instrument in one type of market, is not, in itself, a successful strategy. Trading profitably and consistently is certainly more than that, and is something that cannot be taught by anyone else other than personal time and experience that comes from continual trial and error, falling short, but getting back on the horse with relentless dedication to adjust and adapt and turn over every obstacle, because NOTHING in trading works 100% of the time. The book, The Obstacle is the Way, by Ryan Holiday puts it so well in this excerpt: “The obstacle in the path becomes the path, never forget, with every obstacle is an opportunity to improve our condition”. So with this application and understanding, we do believe that trading is very much a viable method to build wealth.

Yes, numbers don’t lie. But also, millions and millions of people attempt trading, all at varying degrees of true dedication. So then, let’s reframe that number and we can see that there is room in those statistics for many, many successful traders. According to www.visualcapitalist.com, U.S. retail investor involvement hit a record breaking high at the start of 2023 with 1.5 billion individuals in the market every day, likely buoyed by the sudden progress in AI capabilities. And that was data from a year ago! If 3% of those 1.5 billion traders then are profitable, that is 45 million profitable traders annually in the US! Plenty of room there for Kendra and I and our friends for sure! (lol) With that lens, it is in fact possible to “get rich” with trading, as millions of adults in the US alone do! So then, the question shifts to why so many struggle and give up. To get into the heart of it, let’s revisit the factors that make day trading hard. There’s the fast-paced nature of trading, the complexity of the various financial markets, and the fact that it requires the trader to make really rapid decisions based on real-time information, which can be overwhelming, especially in volatile market conditions. But, the heart of the main reason that traders who have taken the time to learn a real edge are not rich though, we all know it - it's a lack of trading discipline.

Again, on paper it sounds easy enough, creating and following a process, setting trade plans and risk management safeguards, those are the critical components for sustainability for sure! For success as a trader, you have to cultivate certain things that are not so cut and dry: a solid but fluid understanding of the markets, a well-developed and consistently practiced trading strategy, the discipline and self control to stick to your plan, sufficient capital or funding to execute the trades you want to, and the ability to manage risk aversion. That’s something I don’t think we often give enough attention to, it’s tricky. Giving into risk aversion can sometimes feel like you are practicing discipline, we often say playing superior defense. However, it can too be a discipline issue, and affect your overall ability to be profitable if your risk averse when you should be playing offense and your aggressive when you should be playing defense. If you listen to the consistently profitable traders that are many years into their career, the story is the same - find your niche, the way that the market most clearly speaks to you, create a system around trading it, define your risk management plan, and then do as you intend day after day. Most importantly, continue to learn, adjust, and develop as the market changes so you can have the trust in yourself and have the confidence to perform well.

“The world’s greatest traders have all walked the exact same path as you are on right now.”

~ Nial Fuller

Robert Kiyosaki, again the author from Rich Dad Poor Dad, had another killer quote: “If you want to be rich, don’t allow yourself the luxury of excuses.” I mean, I think he hits the nail on the head with that one! Money should be earned. And who you transform into while you are doing the hard, critical work of amassing an incredible skill with that kind of potential, you need that time for the complex, internal growth to become a person who can manage money well and continue to use those funds as a tool for even more building! This totally reminds me of the 50 Cent quote, “I’d rather die trying to achieve my dreams than live a life of regret.” Yep, no regrets for us Market Mamas. We have so much we are trying to create, and we know too much about trading and Ms. Market now! It’s time to keep the heat on and fund our dreams from the work we have and continue to put in!

We have more power than many people give themselves credit for. I love this Bill Gates quote: “If you born poor, it’s not your mistake. But if you die poor, it’s your mistake.” Yes!!! We can create our world in the image of our dreams. Every day is full of such wonderful potential and our minds are really so powerful. Trading is the pursuit that we truly love and feel so blessed to have found. It speaks to us both intellectually and energetically! We are learning to really see where and how she moves and can feel the progression in ourselves as women and as a traders. We lean into the effort this career requires and it is paying off.

Trading is 100% a means to the financial freedom that we will earn for our families and ourselves! We have learned to respect it though and take this opportunity very seriously, we have to treat our trading as the business that it is and manage it well. Trader, mentor and psychiatrist Alexander Elder has the quote: “The goal of a successful trader is to make the best trades. Money is secondary.” We love that sentiment so much because it is incredibly true and we have really learned that over time and through our market tuition payments! The money comes when our trading has evolved to a level where we can consistently execute smart, logical, appropriately leveraged trades AND where, on a day that we are not understanding the market well, we protect our backends and follow our business plan for risk management. That is the time where our bank account sees the outcome of our hard work!

This is such a common question about trading and we’ve officially been around in this world for long enough to have a fair understanding of the angles on it. So, we hope we did this conversation justice!