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EverydayInvestor (< 20)

8 Reasons not to daytrade

Recs

30

November 08, 2010 – Comments (6)

From James Altucher:

http://jamesaltucher.com/2010/11/8-reasons-not-to-daytrade/

 

"     Its impossible. I know some very good daytraders. In the long run it is possible to make money daytrading. But it’s hard and it takes years to build the psychology."

 

6 Comments – Post Your Own

#1) On November 08, 2010 at 2:50 PM, miteycasey (30.46) wrote:

EI,

What's your opinion?

 

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#2) On November 08, 2010 at 4:11 PM, davejh23 (< 20) wrote:

"Its impossible. I know some very good daytraders. In the long run it is possible to make money daytrading. But it’s hard and it takes years to build the psychology."

Wait.  It's impossible, or it isn't?  This seems to imply that it's more about psychology than anything else.  I'd agree with this to some extent...some traders have winning strategies, but they don't have the patience and resolve to stick with it...they let their emotions get in the way and cost them money.  They end up looking back, thinking "if I had just stuck with my plan I would have made x% instead of losing x%", but they make the same mistakes over and over...until they're broke or they give up on trading...

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#3) On November 08, 2010 at 9:14 PM, rexlove (99.45) wrote:

I've tried daytrading with some play money I have. There's no question - you can make money if you stick to a strategy. But you need to be flexible - not all strategies work all the time. And there are times when you get really screwed with one really bad pick. Happened to me the other day when my strategy picked SVNT - only to see it stop trading a minute later and then lose 50%.

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#4) On November 08, 2010 at 11:52 PM, Valyooo (99.41) wrote:

To me, the biggest problem with daytrading isnt whether or not you make money, but that that money cant do much for you.  What I mean is that 1) You pay 50% tax (ridiculous) 2) You can't invest that money. If you make $100,000 a year and invest it and can earn 15% return per year, you are essentially  making $115,000 per year.  With day trading, if you make $100,000 you can't invest it because investing it is your main source of money.  So you need to make 15% more than at another job for their to be any economic profits.

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#5) On November 09, 2010 at 1:13 PM, SkepticalOx (99.44) wrote:

mitey

He posted about this a year and a half ago on a post that got some 150 recs: http://caps.fool.com/Blogs/so-you-want-to-be-a-stock/139450

It's a really good read. 

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#6) On December 09, 2010 at 5:27 AM, jeo1234567890 (< 20) wrote:

hey i think that its a good point........... in the blog..........

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joe

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Fixed Mortgages

 

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