Stock  Trading  Earnings for whom ?

when new comers/ beginners enter markets for the first time, in this age of internet, people tend to TRADE , than to INVEST
as in the older days. This is because now we are racing against time. Fast , Speed, quick etc are buzzwords.

So  years   reduced  to months, months  reduced to weeks  so on..

Observe who makes money  when you trade, when you are a beginner:

1. When you trade  about 10  trades a day, you are working for your broker, at your risk and at no salary.

2. When you trade  5  trades a day, you  are working for your broker and also for you, of course at your risk.

3. When you trade 1 or 2  trades a day, you are working for you  and paying your broker his due commission.

So  decide for whom you want to work, for your broker  or for you really.

Assumptions:

1. no of trades mentioned above are  just for an idea, the objective is you should earn more than your broker.
2. As an amateur loses money in trading. This does not apply for a pro.

This entry was posted on Thursday, October 25th, 2007 at 5:56 pm and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.