Thursday, February 7, 2013

Thurs. 2/07

2:00pm CST - 1 signal today.
RESULTS FOR DAY
ZS Contracts:2
Net $P/L:390
Wins:1
Losses:0
Win%:100
Avg$Win:390
Avg$Loss:0

In random earth-shattering news on the Internet:

Don't spend a single day in day-trading
February 01, 2013

DAY-TRADING may seem like a good way to make money, but it's really gambling, not investing - and often just as effective as buying an armload of Powerball tickets.

Successful long-term investors study businesses, carefully select stocks and aim to hold on for years. They consider themselves, rightly, as part-owners of real businesses. Day-traders, meanwhile, tend to spend hours glued to monitors, watching stock-price graphs and placing orders. They'll typically place scores of orders each day and hold each stock for a few minutes or hours. Many ignore company fundamentals and may not even know what various companies do.

While investors pay long-term capital-gains rates on stocks held for more than a year, day-traders are stuck paying generally higher short-term rates.

A study by the North American Securities Administrators Association suggested that only about 12 percent of day-traders might trade profitably, and that about 70 percent "will almost certainly lose everything they invest." (Trading "profitably" does not necessarily mean beating the S&P500, available via inexpensive index funds.)

5 comments:

  1. What fools we all are huh...

    :-)

    ReplyDelete
  2. "12 percent of day-traders might trade profitably"

    It seems to me that the percentage is pretty high and I doubt that. I'm not sure that DAY-TRADING may seem like a good way to make money. But I'm pretty sure DAY-TRADING can cause traders great stress sometimes.

    --Judy

    ReplyDelete
    Replies
    1. Enjoy your blog break Judy, get destressed!

      Delete
  3. The article was written by an ex day trader ..haha

    ReplyDelete
  4. You might want to check this technical analysis program: http://www.cognitum-research.com/en/wave-explorer

    ReplyDelete