Originally Posted by delicious' date='16 June 2010 - 01:10 PM' timestamp='1276708217' post='2659203
I'm up 50% this year. I just bought gs for 133.50 and sold it for 138. I am going to buy bby, but not quite yet.
Still holding goog, aapl, and sndk.
that may be, but the problem (and why i'm so skeptical of day trading, not you) is that you'd have to consistantly do this year in and year out with quite a lot of money ( and then pay tax on your gains, further reducing them) to make it worthwhile. and it takes the income of your job away from you. at my regular job, i've made right at 80k so far this year. and this is like shooting fish in a barrel. i want to work, and i can work. very simple, nothing out of my control like a market crash. if i decide i want to make less, i work less, if i decide i want to make more, i work more. while my job is stressful, i've found day trading to be a lot more stressful.
i'm happy with a 7% to 10% (or hell, even a break even return in a truly bad market year), relatively lower risk tax deferred return in my 401k, and putting 15k more a year (saving me almost 5k in taxes), which my employer matches with 3% of my earnings for another 4 to 5k a year. otherwise i am paying off my debts completely to zero and investing in my video production business (still in startup), where i've got more control and at least a very nice building in the event of total failure. when i do draw my money out in another 25 years, it will be at a low marginal rate, assuming that the world hasn't gone to hell. and if it has, it was all for nothing. which is why you've got to enjoy today
i always caution people about thinking they can day trade for a living. i've seen many, many lose their shirt doing this and i've never personally known one who made a living a good living at it. but if you can do this, that's great. i truly wish you the best of success here.
right now, i am sitting on the sidelines with cash in this market. unless there's a very substantial down movement, i'll sit in cash for the rest of this year. which means i won't think about the market at all, nor will i be glued to a computer screen. instead, i'll be checking the market every few days
what i am doing is certainly small peanuts to big traders who make millions. the thing about it is they aren't sitting at home doing it on a computer, they're doing it at work with intimate heads up info on the market. i can't match that, and i'm just not going to worry about it.
playing with stocks as a hobby is just fine, as the original poster is doing. for the small investor, doing it for a living is quite another matter.