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The securities industrysecurities marketplaces and exchanges for stocks, bonds, commodities, options, etc.has always chosen to have rules and regulations that put the individual investor or trader at a significant disadvantage to the "pro." Besides not knowing the spread (the difference between bid and ask prices), which is the most obvious disadvantage, poor access to the "real" market made day trading almost impossible for the average person. Other obstacles included high direct and indirect commission costs and lack of access to order execution (real-time quotations and services). |
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Put all these obstacles together and the chances of succeeding as a public day trader were slim to none. |
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Why become a day trader? Simply put, there is no activity more exciting, more exhilarating, and potentially more rewarding. Day traders trade flatthat is, they don't usually take home overnight positions in securities. Therefore, at 4 p.m., the close of trading, their day is truly overno worries or stress until the next day they wish to day trade. They're off weekends and holidays and may take a vacation any time they choose. Certainly there is risk, intensity, and stress during trading hoursbut only during trading hours. And those hours go by quickly. Many of my associates curse the long weekends that keep them away from trading. Day trading is so exhilarating that it can become almost addictive. |
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A day trader is usually held in high regard by peers. I would say a successful day trader is held in the same high regard as professionals, such as doctors, lawyers, and dentists. However, unlike other professions, day trading offers unlimited earnings potential. The earnings potential has been written about in major national publications such as, Time, Forbes, Business Week, Barron's, and the New York Times, and so I won't discuss it here. Besides, if I disclosed the results you probably wouldn't believe them anyway. Suffice it to say that many of my customers who were formerly unemployed or underemployed now park their Mercedes in their luxury home's garage. In many cases, they earn incomes, equal to or better than those of the professionals mentioned above. Of course, not everyone is successful. There are a percentage |
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