Ladies and gentlemen, gather ’round, and let me tell you a tale from my million-dollar education—an education not earned in the hallowed halls of academia, but forged in the wild, unforgiving jungle of the stock market. It is a story of speed, stress, and speculation, where fortunes can be made and lost in the blink of an eye. And if I may be so bold, it is also a cautionary tale.
The difference in technology between the 1980s and the 2000s is nothing short of breathtaking. In the 1980s, when I placed an order with a brokerage firm via my computer, that order would be pooled together with others and, through a semi-manual process, eventually find its way to the floor of the NYSE. All of this was done with a 9600 baud modem, and I paid a small fortune for the privilege.
Fast forward to today, and the transformation is staggering. Now, I sit at home, surrounded by multiple screens, able to observe in real-time what traders are thinking. I see every transaction, every tick up or down. With a single button, I can buy thousands of shares instantly. I can buy a stock at 9:30 AM and sell it at 10:31 AM, then turn around and sell another stock at 11:30 AM only to buy it back at noon. In a single day, as an amateur, I have executed ten major trades, earned 1% on my money, and lived to fight another day.
Sounds thrilling, doesn’t it? The rush of the trade, the potential for quick profits—but let me tell you about the flip side. The stress is brutal. I would wake up at 7 AM, researching foreign markets and scanning the news to prepare for the 9:30 AM opening bell. Hours of analysis, strategizing, and mentally preparing for the battle ahead. Coffee in hand, I would listen to Squawk Box, my mind locked in attack mode.
Then comes the first critical decision: is today a good day to trade? I watch the early action, trying to determine the overall market sentiment. Will it be an up morning or a down one? I look for a stock I follow that appears to be moving in my favor. I buy. I watch. I buy more. Now, I have a significant sum riding on this bet, and suddenly, I can’t even step away to use the restroom. The market is moving, and my money is on the line.
As lunch approaches, another crucial decision looms: should I hold my position? Many traders, just like me, will sell before lunch, unwilling to take chances on a market that might stagnate while everyone eats. But will today be different? Are we all eating at our desks, keeping the momentum alive? The tension never lets up.
Then comes the final act of the day. By 3 PM, we all know the drill—dump everything we don’t want to hold overnight. And if it’s Friday? Well, sell even more aggressively. After all, who wants to hold positions through a weekend when an unforeseen geopolitical event or a politician’s offhand remark could send the market spiraling?
Here’s the truth: this type of investing is work. Hard work. And frankly, it is a terrible way for a wealthy person to make a living. The stress is relentless. Some days, I think an assassin’s job might be less nerve-wracking. There’s a vast difference between trading for yourself and managing someone else’s money. Every loss stings a little more when it’s your own capital evaporating before your eyes.
By the way, my returns were nothing to scoff at. I averaged 6 to 8% on money invested per month. But let’s be clear—not all of my funds were in play at once. A seasoned day trader knows that capital preservation is the most important rule of the game. If you lose your money, you are out. Game over.
Does this sound like a safe way to build a retirement fund? Think again. Day trading is not for the faint of heart, nor for those who value peace of mind over the thrill of the chase. Oh, but my million-dollar education keeps getting more expensive.
So, dear reader, let this be a lesson wrapped in a story. The lure of fast money is strong, but the risks are greater. Stress, uncertainty, and sleepless nights come with the territory. If you must trade, trade wisely.
And never forget:It is better to lose opportunity than capital.
P.S. There is a reason there are no famous or rich day traders, because like the casino sometimes you win and sometimes you lose but the house all win at the end.
NEXT Time: I will show you how to make money in the Market.
BTW: March 12-2025 – I own very few stock, just GOLD etfs that just keep going up, soon I will sell those and go shopping for cheap stocks after the correction that happens soon, part 2 years cycle.
Here is a video explaining what is going on now.
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