Trading - Topics

What are the risks of day trading? A stock split changes no value yet retail volume still jumps on the news A forex broker quotes a tight spread then charges swap on every night you hold Dark pools handle a third of US share volume and print no quote the public can see A futures contract expires and rolling it costs more than the commission on the first one Margin interest is charged on the daily balance and compounds against a losing position An airdrop that asks you to approve a contract is a giveaway with a withdrawal clause The pattern day trader rule freezes accounts under 25000 dollars after four day trades in five sessions A merger spread of two percent a month is the market pricing the odds the deal dies A priority fee decides whether a transaction lands in the next block or sits for an hour MEV bots reorder your transaction and the profit comes out of your slippage Slashing takes a validator's stake for downtime the operator cannot always control Payment for order flow is why the commission on your trade is zero An option loses value to time decay even when the underlying goes nowhere Holding a winner over the weekend takes on risk the strategy never tested The best backtest usually comes from a parameter set that only worked in that sample A prop firm's drawdown rule closes the account before the strategy gets to recover The bid ask spread on a thin stock costs more than the commission you saved Borrow fees on a short squeeze can exceed every dollar the short ever made A limit order that never fills means the price you wanted did not exist Mining pools concentrate block production in three operators Circuit breakers halt the market for fifteen minutes and the queued orders set the reopening price A stop loss becomes a market order in a gap and fills well below the level you set Size the position so a 10 percent stop costs one percent of the account The volume in the last five minutes is real and the midday chop is not Staking yields are paid in a token whose price can fall faster than the yield accrues Bridging a token to a layer 2 means trusting a contract that has been drained before A token unlock on a vesting cliff adds supply to a market with no buyers Leverage of 20 to 1 turns a 5 percent move against you into a wiped account Ten losses in a row is a normal streak and 10 percent per trade cannot survive it Short term gains are taxed as ordinary income and that is the real cost of a day trade A journal that records why you entered is the only way to find your losing pattern