I have recently seen many people ask about intraday trading, with some claiming big profits and others losing everything. I’ve decided to organize the true findings from regulatory agencies and academic research to give newcomers a clear and sober reference.

Let’s start with the conclusion: both regulators and studies indicate that most retail traders lose money after deducting costs and taxes. This is not scare tactics; the data is there. The US FINRA and SEC have issued investor warnings explicitly stating that intraday trading carries high risks and is not suitable for many retail investors.

So what exactly is intraday trading? Simply put, it involves buying and selling financial instruments within the same day, often executing multiple trades. Some say it’s like gambling; others say it requires skill. My view is that it’s a bit of both. Research has found that a very small number of people can achieve positive returns through strict discipline and low-cost strategies, but they are the minority.

The key issue lies in costs. You might see decent gross profits, but once you add commissions, spreads, slippage, and financing costs, the profits are eaten away. High-frequency trading amplifies these effects, which is a major reason many lose money. Academic research consistently points out that trading costs are the number one killer of poor net performance.

If you still want to try intraday trading, I recommend starting with these steps: First, learn the basics—don’t rush to put real money in. Second, practice with a simulator, set time limits and trading caps, and record every trade, entry reasons, slippage, and fees just like real trading. Third, write a plan that clearly defines your stop-loss rules and position sizes.

When evaluating yourself, ask three questions: Can you afford to lose this money? Do you have the time to learn and monitor? Do you have a written plan? If any answer is uncertain, keep practicing on the simulator and don’t rush to use real capital.

Here are some common pitfalls I’ve listed: overtrading amplifies costs; leverage and margin accelerate losses; cognitive biases (like overconfidence) can lead to irrational decisions. Therefore, set objective stop conditions, such as a predefined drawdown percentage or pausing when you fail to beat low-cost benchmarks, then reassess.

Regulatory advice is very practical: set clear loss thresholds, regularly record costs and slippage, and treat early practice as research rather than income. If your simulated net results are marginal after costs, the real trading advantage may be very weak.

Ultimately, intraday trading is not a quick path to wealth. It requires genuine discipline, thorough preparation, and strict cost control. Most people lack these conditions and will lose money. If you decide to explore it, treat it as a long-term learning process, practice with disposable capital, and keep your financial safety net intact. Trust the data, trust the regulators’ warnings—this will be better for your wallet.