Did any one try this or is doing this at the moment?
Well, I did 1.5K in the past summer, but I wasn’t really consistent at trading every day, just invested and sold later on.
Oh, and if wondering, I was trading with 6K, so it’s a 25% growth.
Too bloody risky in my opinion there are more productive ways for me to make money.
There are more productive ways to make money,
You basically have to be a pro
to not lose profit let alone turn a profit.
That said if your running Medici who knows how that changes the game?
Might as well put Marketweaver to the test if you got the funds.
The stockmarket is an absolutely brilliant way to make money.
And I know a number of people who have made (and continue to make) real money.
However, you have to go about it the right way.
I don’t know of anyone who makes real money from day trading or forex, so what you have to consider is value/GARP stuff.
Consider this, I started getting interested in a little E&P oil company called Soco Int (SIA) at 81p and finally sold out at £34. Or during the banking crisis, NWBD prefs with their 9% coupon being on sale at 25p to the pound.
To be successful you need to read a lot and think about this a lot. Most people won’t do this because its hard work and most will find it boring so will never do what is necessary to be successful.
Here is a test, DataDog, Fastly, Blue Prism. Are these three stocks good value at their current price?
I have no idea about trading stocks at all…literally zero information about it …lol
I have been reading a book about wealth that mentioned it…thats why i got curious.
@pacman just be aware of the rabbit holes especially places like youtube where people advertise how to make a 15 grand in a month from home "buy my course and sit at home trading, get rich and have yourself loads of hot birds, fast cars and a private jet.
I wouldn’t say it’s a waste of time, but remember that you’re going up against millionaires / billionaires / millions of other speculators / etc. who trade purely on cycles of fear and greed. Not to mention (at least in the United States), there’s ridiculous limits that they place on people who don’t have enough money, limits that will prevent you from making money. And they claim they’re doing it for your own good and to “keep the market stable,” but it’s clearly to give those with more money an advantage.
You’d do better to focus your energy on something where you control both the inputs and the outputs, like eCommerce, running a service, writing (and marketing) a novel, etc. By that, I mean something where your potential profits largely depend on how much time and effort you put into it. Even when you’re engaging in technical / financial analysis of a company, you’re still making decisions based on their outputs without having complete access to the inputs.
There a lot you can gain by investing, I started buying stocks during the bottom of the covid drop and it worked out very well for me.
If you don’t want to do trading and are making money elsewhere, you can always just add in monthly or weekly into an ETF that you like so your wealth keeps growing. Buying and holding for years is an effective strategy too, you don’t need to day trade to make money. Like anyone that sat on AMD since 5 years ago is very happy right now and probably outperformed any Forex day trader over the same 5 years.
I think a key is to invest in what you know because you are likely to be more passionate to research the company and will be able to value them better. You also will be able to make more informed trades and can be more confident in your decisions when the stock is going through a technical correction. Also, a common strategy investors use is to divide their portfolio into portions, so if one of your stocks is doing really bad, it only can affect say 10% of your total portfolio.
It’s helpful to have a mentor or more skilled person to know personally to learn from too. There’s a lot of predatory people online that do not have their best intentions for you and they actually work with the investment banks to help you lose by teaching you useless BS. Banks don’t want retail investors to be successful because they make more money when you loose on margin and options and they also need a sucker to sell to when stocks are overpriced.
Finally, the hardest part I would say is learning to control your emotions. This can only be done overtime because every trader reacts differently to the fluctuations in the market. You have to learn how the charts take you for a ride, so next time you can catch yourself falling into the same kind of trap. For me where I suck is selling a stock when I’m in hefty profits, I just can’t let it go because the successful emotion I get is very powerful and addictive to me. I lost out on gaining over 100% from some trades because of this.
I’d say start small just to experiment, accept that you could loose that money and then grow from there as you gain experience.
The two main branches are investing and speculating/trading.
Investing is where you buy stocks with the intent of keeping them a long time. Think Warren Buffet. It takes a large investment in time when figuring out which ones you’re going to get. But once you bought them, you pretty much have to wait. For years.
Then there’s trading, which is essentially taking advantage of short-term waves or movements, usually taking advantage of the great many people that are doing it wrong. You pay service costs for every day that you stay in the trade, so usually you’re in it for a few days, maybe a week. Only large movements can last a month or so.
The advantage there is you can profit from both value increase and decrease, simply by “betting” the correct movements.
In this category you’ve got your day traders that are on top of it, but also the technical traders, that spend about an hour or two each day and make a 40-100% profit bi-annually. The keyword there is “technical”, since the trader takes advantage of other people’s emotions, but must never let themselves be controlled by their own emotion. They use complex mathematical formulae to determine when to step in, when to step out, how much of their money to invest and how much risk to take.
This last category, provided you learn it, is very profitable and doesn’t take a lot of time. I know people that had pending orders ready at the start of COVID. When the indices crashed over the span of two or three days, they came away with millions. And that’s even with the algorithmic trading A.I’s belonging to the 1% beating them to the punch every single time due to less lag time.
It does take a certain mentality though. An investor invests in an undertaking in order to help it grow, a trader counts on the emotions of others to ruin them and makes money only when lots of other people lose it. After all, the money has to come from somewhere and since it’s not an actual investment and the banks aren’t losing it, it has to come from all the people making mistakes.
Nerves of steel. And if you go into day trading, a bladder of steel too.