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