I know that day trading is extremely risky, but is weekly trading a good way to make a part time income?
- 1 month agoFavorite Answer
No - any short term trading is gambling, not investing. There are more losers than there are winners.
- Casey YLv 71 month ago
Any trading done by the inexperienced and untrained is akin to blind gambling....
You are literally competing against companies with billion dollar budgets who can transact business in microseconds...but sure...go ahead and try to compete.
Or...just give them your money and let them take a cut of the profits...
- oldprofLv 71 month ago
Consider it going into a Las Vegas casino and betting on the throw of the dice. If you have money to throw around and not be concerned about losing it, then play the market. It's a learning experience at least.
When I was in my forties, I used to take a lunch break and drive down to the local Charlies Schwab office to follow the market. And on occasions, put in a couple of bucks...which I for the most part lost. But I learned a lesson from that. Don't do it for a living and really study your potential investment before investing.
I did make one killing. Collins Radio. I bought at a few bucks (don't remember exactly) and sold for ten times that amount a few days later. But that was the one and only "win" in playing the market for about a year.
Like I said, playing the market is like playing craps in Las Vegas.
- A nobodyLv 71 month ago
If one does not have trading experience, any type of trading is extremely risky. There's no difference from trading for a month, week, day or minutes. Trading is trading, the same rules & regulations apply.
To be a trader you must first learn how to invest. You must know the products and the markets in which they trade and more importantly you must know the rules that govern those products and markets. You need to address four major policies and have very strong discipline to follow them
1 - You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don’t try to out-smart the market, you’ll loose but if you always take what the market is willing to give you, you’ll be successful. Other words, you don’t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose
2 - A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away - don't loose more than you need to and don't be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
3 - You must have sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
4 – A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.Source(s): from The Street
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- tiescoreLv 61 month ago
not likely especially since most inexperienced investors become interested in short term trading right as markets peak. I've been using interest in it as a leading indicator for decades. Set financial goals and find long term investments that will meet those goals, and develop a plan to achieve it.
- Wayne ZLv 71 month ago
If the stocks you buy only go up.
What do you know that Wall Street experts do not?
- Anonymous1 month ago
You can't lose.