2006-06-13 04:28:23 · 5 answers · asked by wdunba1 1 in Business & Finance ➔ Careers & Employment
There is a lot of money to be made, but a lot of risk too. If you can't stand to lose $20,000 in a day, then don't try it. It takes a lot of money to risk to make any real profit. The taxes are higher for stocks held less that a year too.
2006-06-13 04:33:25 · answer #1 · answered by crgrier 4 · 1⤊ 1⤋
It really is not a good career move. To understand why study the Efficient Market Hypothesis. With this foundation, do some research on the performance of the pros, managers of mutual funds. You will soon see that over any mid to long term horizon the vast majority of mutual fund managers underperform the Indexes. The few who have beaten it have succeeded more due to chance than skill. Their success is most likely unsustainable.
If the pros, with teams of highly paid security analysts sporting MBAs from Harvard, with millions of dollars dedicated to computer resources and investment information do not beat the market; do you really think you have a chance making a living as a day trader? The rational answer is an emphatic no.
Additionally, day trading bears significant trading costs and generates substantial tax liabilities. All your gains, if any, will be taxed as short-term gains at ordinary income tax rates.
You are a lot better off getting a real job, earning a descent wage and investing in the company's 401K. Most companies match your contribution up to 3% to 6% of your wages. That's an easy 100% return on your investment (due to the company matching).
2006-06-13 04:49:26 · answer #2 · answered by Gaetan 3 · 0⤊ 0⤋
I think it's a little too high risk for most people to stomach. Of course if you're a really good investor, and you've a lot of spare cash, yes. But then you wouldn't be asking this here then.
Personally, unless I was a professional trading other people's money for a living for several years, I wouldn't day trade as my sole source of income.
2006-06-13 04:36:05 · answer #3 · answered by domestic shopaholic 4 · 0⤊ 0⤋
It's probably about as smart as starting your own business. Great for some people, a poor choice for others. It depends on how much you value a steady income and your risk tolerance.
2006-06-13 04:32:03 · answer #4 · answered by JobYouDeserve.com 2 · 0⤊ 0⤋
Only if you really know what you are doing it is.
2006-06-13 04:31:44 · answer #5 · answered by Anonymous · 0⤊ 0⤋