Day Trading, is it really worth it.
Hello, what follows will be a story from real life that involves investing. If that is not your cup of tea, heres your chance RUN AWAY, RUN AWAY!!!
As always the story your about to hear is true, only the names have been changed to protect the innocent.
About a month ago I attended a Chistening on my wifes side of the family. And there was a dinner afterwards, Greek food and music. Weird thing is neither my wife or I is Greek, good time though.
Heres the investing part-
Was looking forward to seeing my Sister-in-law, who happens to be a day-trader. Last time I saw her was Chistmas 2008 and we always have a conversation about stocks. I give her full kudos for getting out before the crash and getting back in after.
Heres the conversation-
Me- (smiling) so how'd Mr Market treat you last year?
Tipper- Not bad, gained a few percent.
Me- (puzzled) but everything went up.
Tipper- (with a furious gaze, and eyes made of fire) NO S**T!!!
She then told me about some biotech that she had recently shorted, and can't get out of since shes in the middle of a bitter divorce, and her ex froze the account. I remembered the stock at the time since I saw it made a huge run-up one day, but have completley forgot about it since.
Want'ed too add the conversation on the drive home-
Me- why did'nt you tell me Tipper was getting a divorce?
Mrs msftgev- I don't know, never came up, why?
Me- Cause I almost asked her how Al got out of coming to the Christening.
Mrs msftgev- Ooh, that would've been bad.
Me- (laughing) yeah I know talk about your ackward silences.
(remember the names have been changed:)
So I guess the point of this is, for all the time she spends day-trading to only eek out a few percent hardly seems worth it. Pesonally I made over 100% in 2008, and I'm convinced that if I were a more experienced investor I could have made much more.
So what do you Fools think? And to the day-traders out there is a few percent acceptable, or does Tipper just suck at it.
ps- when I was trying to figure out the tickers for this blog E looked interesting, gonna have to do some research.