Apr 3rd, 2008
Buy low. Sell high. Get rich. Work from home. Own a mansion.
Buy low. Sell high. Get rich. Work from home. Own a mansion.
These are a few of my favorite things. Its also completely unrealistic yet it seems to be every investors dream. I must get about 10000 stock tips a day in my inbox. Then on top of those there are the “learn to be a day trader” emails.
Of course I subscribe to each one, cause everyone knows Joe12343454469696969@hotmail.com is probably the expert on day trading. The thing that really gets me is that they must make money doing this or they would stop sending out the emails and stop making the websites.
Thats all great and all except that even without sketchy tips, day trading has some major flaws like:
-Most people that try and day trade lose money
-There are a billion government regulations that cut profits
-Even if you make a little profit, taxes will take a chunk, trading costs will take a chunk, and the booze you buy to celebrate will drain the rest (note: if you go this route, save some booze for when you dont make profit, you’ll really want it then)
-Most day traders know very little about the companies they are trading
I don’t do it, you shouldn’t do it, and you most definitely shouldn’t buy sketchy ebooks on how to do it.
- 2 Comments
- Investing
I’d be a godawful day trader. Awful. Of course that might make me average in the field…
While day trading with the expectation of outsized gains is a decidedly bad idea, investing in individual stocks outside of your retirement accounts is not.
There is a time and a place to swing for the fences. Lest you end up “settling” for middle class as you have posted negatively about.
The first part of your title is perhaps the best kind of advice for any investor, “Buy low. Sell high”.
~Michael