Analysis of Bad Habits Among Profitable Day Traders

The analysis is based on a Reddit discussion [Reddit post] where traders shared their observations of bad habits among profitable peers. Key habits include cannabis use, reliance on digital prop firms, degenerate behaviors (gambling earnings, violating trading plans), and the belief that non-profitable-impacting habits are harmless.

Some traders claim cannabis use outside trading hours does not affect focus [Reddit post], but research contradicts this. A 2025 JAMA Network Open study found heavy, chronic use reduces brain activity in regions governing decision-making and attention [1]. Even off-hours use can lead to persistent cognitive deficits over time [0], critical functions for day trading.

While prop firms offer leverage without personal risk, their simulated environments lack real market conditions like slippage and liquidity [2]. This leads traders to develop poor risk management habits, such as unrealistic order execution expectations, which result in significant losses when transitioning to live accounts [0].

These behaviors (overrisking, taking bad setups, gambling earnings) stem from psychological factors (greed, FOMO, illusion of control) [3]. A 2005 MIT study found even profitable traders are vulnerable to such impulsive decisions, which erode long-term profitability despite short-term success [3].

The mindset that non-profitable-impacting habits are harmless ignores long-term risks. Cannabis use may lead to cognitive decline over time [1], and degenerate behaviors can escalate to account blowups [3].

• Short-term profitability does not negate the long-term risks of bad habits.
• Cognitive functions affected by cannabis are critical for day trading, even with off-hours use.
• Digital prop firms’ simulated environments hinder the development of real-market risk management skills.
• Trading psychology plays a central role in degenerate behaviors, which are difficult to control even for profitable traders.

• Cognitive impairment from long-term cannabis use reducing trading performance [1].
• Unexpected losses for prop firm traders transitioning to live accounts due to unaddressed slippage/liquidity issues [2].
• Account blowups from escalating degenerate behaviors [3].
• Apathy towards habit improvement due to the “if it’s profitable, it’s fine” mindset [Reddit post].

• Traders can address habits before they impact long-term profitability by prioritizing cognitive health and psychological discipline.
• Avoiding digital prop firms in favor of real-market trading environments to develop robust risk management skills.
• Seeking psychological support or education to manage impulsive trading behaviors.

This analysis highlights that profitable day traders often exhibit habits with potential long-term negative consequences, including cognitive impairment from cannabis use, poor risk management from digital prop firms, and impulsive behaviors rooted in trading psychology. The belief that non-profitable-impacting habits are harmless is a significant risk, as these habits can escalate and erode success over time.