| Way back in February of this year, I quit my full-time job to become a freelance writer. Just upped and quit. That first month, not knowing where my next dollar would come from, was a tad nerve wracking. Profitable writing does take time and patience and I had neither. Nor did I have a steady income.
Talking with a friend one day, I found out that he was a day trader. "What, pray tell is that", I asked. "Oh, I wake up at 5:00 every morning and place my orders for stocks. I'm betting that my stocks will open up higher than they did the previous day. If I'm right I earn a nice chunk of money. Yesterday I made $7,000.00 in one day".
"I beg your pardon?" said I, eyes wide and filled with dollar signs.
"Oh yeah. I usually make that much money, but I've also lost that much money. At the end of the month it usually equals out, but it's very risky".
"Risky, schmisky…I want to learn how to do that!"
He sent me to the Web to learn. Didn't even offer to help me get started.
And that, as we'll find out, was a blessing.
I poured myself into my new job: day trader. If he could do it, by gosh, so could I.
I did a Web search for "day trader" and got more than enough resources to show me how to do it. In fact, I got way too many.
What I did realize, thankfully right away, was that day trading is a quick, easy way to make money. Similar to most things in life, however, there are no such things as quick easy ways to make money. I put the skids on that dream before I even started.
Prior to becoming a writer, I spent 15 years in the mental health field. My expertise is in the addictions and I realized something very disturbing. Day trading has all the markings of an addiction.
You get instantaneous gratification. Similar to a slot machine, when you hit the big one, you're hooked. That immediate gratification can feel so good. So good, in fact, that you will continue to spend in order to acquire that same feeling again.
Slot machines can be alluring and deadly. Many people suffer tragically from this addiction.
Day trading is similar. To make $7,000.00 in a few minutes has got to feel wonderful. It is too easy to get hooked into that feeling and continue day after day, searching for that feeling.
As my friend indicated, "day trading can be very risky". And not all day traders are necessarily addicted, but crossing that line can be fatal. And, as he also said, he may loose more than he wins.
Needless to say, as alluring as day trading may be, I really would not encourage this type of stock market trading. I don't have the stomach for it anyway. My friend did indicate that this type of trading could be very, very stressful.
Great…just what I need in my life right…more stress.
Let's not take the easy way Moms. We'll be patient – we are BUYandHOLDers. We are going to continue with our "buy and hold" long-term investing strategy.
And….as an added bonus, I just need to tell you that a few weeks ago I asked my friend how his day trading was going.
"Oh, I don't do that anymore. The market's too volatile" he said.
Smart cookie that friend of mine is. And smart cookies we all are for investing for the long-term here at BUYandHOLD.
And as we near the end of this year I'd like to wish all my readers a safe and prosperous Holiday Season and a special thanks for joining me each week.
My Mom Chronicles have been a personal dream come true for me: To write about something that I love. And, I do love writing the Mom Chronicles. I hope these articles have been of benefit to you as well.
Take Care and Happy Holidays!
Joyce |
