Day Trading is Hazardous to your Wealth

[bran987]

Further proof churning your portfolio will hurt your returns in the form of CG taxes and commissions stacknig up, for the average household.

http://www.fool.com/News/mft/2005/mft05020204.htm?source=mpmftlist

http://faculty.haas.berkeley.edu/odean/papers/returns/returns.html

 

[dio_9944]

Are you running, or are employed by a full-service brokerage firm?

You seem reluctant to see the merit in day-trading.

I'll break it down for you.

For me:

A) I have only a couple of years of college under my belt. I've dropped out of three different institutions. That makes getting a typical job very difficult. I'm quite successful trading intraday.

B) Relates to A. I strongly dislike being an employee. I am incorporated and run as my own business.

C) Meritocracy.

D) The hours. I live on the West Coast, so the market opens at 6:30 PST and closes at 1:00. Whole afternoon to myself.

You cite websites such as Motley Fool.

Not only is that a clever name, but it's true. Idiots.

I'm curious, have you ever sat at a terminal and watched various issues trade real-time?

No attack whatsoever, we conversed in the last thread about this. I'm no accountant, so Capital Gains issues are lost on me, but commissions are a cost of business, and nobody is going to use a broker charging $20 a trade or 1 cent a share to daytrade.

It's sad that I deal with people everyday who look down on me as if my chosen profession isn't viable.

 

[bran987]

please see my post above

for the average household

I added that just for you bud
If you can make it work that is awesome, I like to make a habit of hanging around above average people.
p.s. my other name is Charles Schwab lol j/k

 

[dio_9944]

Yeah, I saw that after I posted my reply. I would've deleted, but that's no good.


You don't even know how often Mr. Schwabby (SCHB) makes life difficult for me.
Sorry about the rant. Not too often a guy gets to vent in real life without going to prison.

 

[bran987]

Yeah, I saw that after I posted my reply. I would've deleted, but that's no good.


You don't even know how often Mr. Schwabby (SCHB) makes life difficult for me.
Sorry about the rant. Not too often a guy gets to vent in real life without going to prison.

no problem bor, you are living the life (off work by 1pm?!), enjoy it!

 

[Mr.X]

here's my take on day trading: it CAN work.

when I used to trade, I mostly pushed options/gold and did part investing in HYIPs.

basically, I came out with about 50-500% monthly return on a hedge market basis. Thus, with my 401K draw back in the day and being fired, I took the $10K and turned it into about $250,000 the first year...those were the good old days

Mr.X

 

[bran987]

here's my take on day trading: it CAN work.

when I used to trade, I mostly pushed options/gold and did part investing in HYIPs.

basically, I came out with about 50-500% monthly return on a hedge market basis. Thus, with my 401K draw back in the day and being fired, I took the $10K and turned it into about $250,000 the first year...those were the good old days

Mr.X

can you elaborate? was this a full time job? were you trading at a firm? HYIPs are all over the Internet promising 3% daily returns, what the hell are they? what made those the good old days and why would you stop doing something that was so lucrative?

 

[Mr.X]

can you elaborate? was this a full time job? were you trading at a firm? HYIPs are all over the Internet promising 3% daily returns, what the hell are they? what made those the good old days and why would you stop doing something that was so lucrative?

1) yes I can
2) yes it was, VERY VERY stressful, about 14hrs a day in front of a computer
- wake up at 2am
3)HYIPs with 3% a day will fail before you get your cash back, stick to weekly/monthly payers, and make sure the company is not Mr.X Inc. meaning is has a phone#/fax#/email/physical addy/a manager you can talked to and that you SPOKE WITH BEFORE YOU INVESTED. On average HYIPs bring in about 10-20% mo/wk depending on the risk assesment of the project.
4) it's too much stress and it's WAY WAY too regulated now, the SEC/FBI/FCC/FTC will jump on you like a fat woman on a pie, eventually all the programs shut down. I have some advice for begginers, DIVERSIFY, think of it this way:
a)$10,000 invested in 30 programs
b)$10,000 invested in 2 programs

if 1 fails, which way do you fair out better? that's right A...stick to your guns and play the game right don't just jump into the mix without knowing jack-shit.

Mr.X

 

[help4john]

WOW....great for you Mr. X and Dio! Wish I had that success story. My story was much more simple. I too tried day trading and was successful in the late 90's....hell who wasn't. It really didn't matter what you bought or how much.....it went up and up. Learned my lesson in the bear market that followed. Now I stick with a few "life stocks". These are stocks that I continually purchase over and over. I chose a few companies that I thought would be successful for decades to come and will be patient for my returns. This is a less lucrative approach......but also more conservative.

Having said that, I still do trade a few times per month. Sometimes I win....sometimes I lose. It's a gamble that we take.

 

[bran987]

Mr. X I have never taken HYIP seriously, it sounds completely ludicrous. But you are a well respected member of EF and have been successful, can you explain to us what a HYIP is?