Trading can be a wonderful venture, but it comes with its share of dangers.
One of the primary risks is financial loss.
The volatile nature of financial markets means that everyone suffers loss.
Irrational decision-making is another pitfall; fear and greed can lead to impulsive actions that erode capital.
Overtrading, where traders make excessive trades, often results in losses
Lack of knowledge is yet another issue;
trading without a solid understanding of markets and strategies can be disastrous.
To navigate these dangers, traders must educate themselves, practice sound risk management, and exercise discipline in their trading activities.
Theory is not always useful when you put it into practice, but it supports your knowledge. I have traded in the past, but something has made me realize that day trading is not better than long term investing. I could use 10% of my budget for trading, but I tend to avoid trading for long-term investments.
I'm sure most of your points are credible, but things are always risky regardless of whether you invest or trade. Trade carefully and always use the best strategy to avoid serious financial losses.