my friend and i are pooling money between guys in our school. so far guys have pledged a grand total of $10,000. my friend says that by day trading copper or silver and selling for a 10 cent profit per share, over the period of a year and a half, our $10,000 will increase to over $100,000. we do have the ability to trade commission free but we do have to pay some sort of note (im not sure what, but is around $30 per sell) but even with this advantage, my friends predictions seem way too optimistic. we would be making these kinds of trades in the ballpark of 5-10 times a week for about a year and a half. what are the problems with this get rich quick scheme? it seems too good to be true for how simple he describes it. i havent been able to argue with him b/c i dont know enough yet. please explain the risks and what we need to do to make this work so this doesnt blow up in our faces. thanks
2007-01-15 16:51:48 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
Short answer: you will lose all or most of your money.
Longer answer: The market, any market, always moves hard against you to take your money at the most inconvenient time. Paying a $30 "note" is much more than a commission which can be as low as $1. Gold trading is available to the whole world which means a:why ain't everbody rich? and b:can you outguess the swiss bankers, not to mention NYC?
2007-01-15 17:26:50 · answer #1 · answered by charlie at the lake 6 · 0⤊ 0⤋
First off, congrats on the well deserved insertion into the Top 10, Punch :) Favorite "metal" band- Silver Apples Favorite "metal" album- Through Silver and Blood by Neurosis Favorite "metal" song- tie- Through Silver and Blood by Neurosis and The Silver Hawaiian by Helmet BQ- kinda like blue tastes BQ2- Hail the Sky by Canvas
2016-05-24 20:49:45 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Huge risks for day trading because most people lost a lot of money! It's a big gamble and if you day trade, be sure you do have the best broker, not online broker which usually trading price is delay!
Day trading is like going to casino!
2007-01-15 16:58:13 · answer #3 · answered by Anonymous · 0⤊ 0⤋
the main risk is that you will lose ally our money and end up on the corner with a will work for food sign
2007-01-15 16:56:34 · answer #4 · answered by monetspicasso 3 · 0⤊ 0⤋
You cannot daytrade with just $10,000.00 USD.
2007-01-15 19:05:39 · answer #5 · answered by Anonymous · 0⤊ 1⤋