Post of the Day
January 12, 2000
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Day Trading is a Job
I got an e-mail today from someone asking about day trading and the "everyone's doing it" and the "it must be an easy way to make money" or better put ...THE GET RICH QUICK SCHEME. I responded in my fashion:-)and they replied "Please, copy your response to the board without mentioning my name"..so..I am..as I know there are alot of lurkers and I know this has come up in the past...here it is....most of you may want to skip past this:-)
I would first like to say that Day Trading is a job just like an accountant,a banker, a lawyer, or any other profession you can think of. Like any other profession, you have to know your trade--your profession . I could not walk into a dentist office right now and sit down and proceed to fill a cavity because I've had one filled anymore than someone should expect to be able to sit down and successfully trade because they have money in hand and an online broker. I have to ask you, have you ever sat in a doctor's office in the waiting room, and mentally counted the people sitting there(while he makes you wait) and tried to calculate what he must be bringing in an hour? Do you see this as getting rich quick? this is actually the pay off of countless hours of studying, mistakes, learning and money(even if it wasn't his:-))Expect the same grueling routine learning day trading. Actually, better yet...picture it this way..that every time you didn't do your homework, or you didn't pass a test..it cost you...it was money out of your pocket.Make more sense?
|"...more "day traders" fail than make it, because they approach it from this perspective of a scratch ticket in the lottery."|
I personally think there is not a daytrader that is successful that has not gone through the bottom of wondering "can I really do this?"; am I going to go broke trying? The reality of this is, (and I apologize if it seems I'm unloading on you here), that more "day traders" fail than make it, because they approach it from this perspective of a scratch ticket in the lottery.
I appreciate your kind words and your interest and I surely don't mean to be harsh here, but with what you have told me, the money you have to "risk" in day trading is exactly that.."a risk".Recognize it as that and ask yourself first, if given any opportunity to put that money towards an education and a profession, is this the profession you would choose? My statement here sounds counter productive in itself, but I must make it..."the money you lose is the price you pay to learn..it's your education"..and you will lose money. You may start off with beginners luck, or think you've found the "key source", but it all comes with experience and your own plan, the "performance test". Knowing again "your trade". Luck only runs so far, guesses are only accurate now and then, but to be consistent, that takes knowing and experience.
I hope this helps you, and as I said, I sure dont' mean to sound negative, but, I felt your perception is jaded. You said college bores you, yet, if you only knew the hours of research spent at this computer, especially in the beginning, doing research,(I've had 18 hour days..to make nothing more at times). Now of course, over time, the more money you make, the reward is the more shares of anything you can buy and the less hard you and your money have to work....but again..."this is after learning "YOUR TRADE"..and knowing the stocks you follow... not because you have money to start with, or you have a "degree" in anything really. This is a different school, with a different tuition, your time, your money and your experience are the means to your salary.
I hope this helps.
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