Is Day Trading For You?? Maybe.
“An investment in knowledge pays the best interest” – Benjamin Franklin
dateline: Monday, March 23, 2020
Coronavirus fear grips the country (and the world). Businesses have been ordered to close. Millions of people have been laid off. A major worry is how to pay the mortgage, buy food, pay bills?
Everyone is looking for ways to make money from home, wondering what they can do to generate income. Learning how to day trade is a skill that will enable you to make money for the rest of your life. Can you learn to day trade? Maybe. Learning how to day trade is probably the most important skill a person can ever acquire.
Saying that day trading is a skill that can be learned is a misnomer because you don’t actually “learn” it, you “acquire” it. Unlike skills that take book-smarts, no amount of “intelligence” will make you a profitable day trader.
Experience in observing market movement is one requirement of successful day trading, but probably the most important thing a day trader needs is a reliance on “gut feeling” based on a variety of circumstances affecting market price action.
Day trading is the most valuable skill any person can learn. The current situation causing millions of people to be laid off certainly underscores that.
Day trading can support a person forever, without depending on a job or a paycheck and without fear of being laid off. Make enough money in just a few hours a day to live comfortably. Become financially independent and live without fear of running out of money.
But the question you should ask is “Can I become a successful day trader?”
To that I answer, “Maybe”.
This is a chart of the S&P Index from January 1st 2017 to March 20th, 2020. Long term investors lost all the gains of the previous 3 years. Will it come back? The only similar experience was during the Great Depression. Back then, it took 10 years for stocks to recover.
