Why You're Better Off With A Long Term Investment Strategy
Many people are rushing to get onto the "day trading" bandwagon.
Hearing stories about the potential to make millions, they are
rushing out to trade stock after stock, going for small
fluctuations in daily prices. But is it a good idea in the long
run?
Probably not. Day trading can get you some quick gains - but the
real question should be how much time it takes you to do that.
Most people who day trade have to do it full time as a job, and
even then they only make about what they would at a regular job.
For some people, this is still worth it, but it takes a certain
personality. You have to be willing to accept risk - to
understand and be able to live with the fact that your income
could be dramatically reduced for long periods, and that you
could be forced to make cutbacks or even temporarily wiped out.
A long run investment strategy is best for those who don't like
those kind of risks - if you're trying to build a nest egg, you
don't want to go anywhere near day trading. You should be
gradually investing, building up your capital for the day when
you retire. This is going to be the best option for most people.
It doesn't take much time - you can just buy the Dow, and you
will still get good returns. You won't be making ten percent in
a day, but you won't be losing it, either.