| Can you get rich day trading stocks? Well, let me ask | | | | many more transactions than anyone else ever |
| you this. Can you get rich picking garbage up? | | | | would just trading normally. So you have a huge thing |
| The answer, yes. (I know some people who own | | | | to overcome there. But it gets even worse. You |
| garbage companies and they do very well for | | | | have less opportunity to profit. |
| themselves). | | | | The price swings that happen in a day are relatively |
| So what's my point? | | | | small compared to the price swings that happen over |
| My point is if you can get rich picking up garbage, | | | | time (say over a week). So you have less |
| you can get rich doing just about anything. And that | | | | opportunity to profit, and you have many more |
| would include day trading. I bet you can guess what I | | | | transaction costs. |
| think of day trading now. Look at it this way. One of | | | | Now if you approach day trading as say a way to |
| the biggest enemies of a trading system is | | | | get a better fill in a trade, but it's a trade that you |
| transaction costs. | | | | will hold for a period of time (again say a week or |
| It's the reason trading isn't a sum zero game. It isn't | | | | more), then yes that is viable and can work. The key |
| because of transaction costs. That makes it a | | | | with trading is to give yourself a chance, and you |
| negative sum game. In day trading, you rack up | | | | really don't with traditional day trading. |