| Cheap stock trading may seem like a great idea until | | | | It may seem like a great idea to take a little bit of |
| you realize the rewards are paltry compared to the | | | | the family nest egg to dabble in the equities market |
| level of risk involved. Long time investors have | | | | but what small timers quickly find out is that they |
| known for some time that investing in the equities | | | | have too little capital to invest. Having to little money |
| market is a woefully inefficient means of deploying | | | | to begin with makes earning a decent return on |
| capital. The notion is that the free reign of day | | | | investment in the equities market difficult for the long |
| traders in the equities market are over - and have | | | | term investor, and all but impossible for the day |
| been for some time. | | | | trader. |
| Day Traders Not Fooled by the Media Hype | | | | Why option and forex traders fare better is because |
| What we see in the capital markets today is a | | | | those markets allow the amplification of gains via |
| preponderance of the individual day traders' activity is | | | | leverage. Basically a person with only a thousand |
| concentrated in more leveraged forms of investing | | | | dollars to work with can invest as though they had |
| such as options and forex. People new to the market | | | | $10,000 or even $100,000 or more to invest. A 3% |
| may be attracted to the cheap stock trading ads | | | | gain becomes 30% or 300% accordingly. The |
| seen on the media, television, etc., but the real action | | | | downside is that losses are equally amplified (max out |
| and money is being made elsewhere. | | | | at 100% for most small timers though). |
| Why Cheap Stock Trading Is Out and Options Are In | | | | |