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Monday, November 14, 2016

Why Day Traders Cannot Quit?

Day Trader glued to the trading screen
A Day Trader/ Margin Trader Glued to The Trading Screen

‘Day Trading’ is a highly dangerous and speculative activity, not very far from being labelled gambling. Most probably day traders are addicted.
Another reason is gamblers invariably try to recover the gambling losses by doubling their bets - with the hope and self promise that once they have recovered past losses they will quit. In reality this does not happen and they sink deeper and deeper into losses.
These people do not understand the following simple and fundamental facts of stock market investing:
  1. Actually stock investing is simple and does not require genius
  2. What really creates wealth is time and not investment acumen
  3. Price variation perse do not form the so-called returns from investments but dividends, price increase on the back of natural growth of revenues and profits of the companies are the actual reasons behind the attractive stock market investment returns.
  4. Leading a simple life is essential to attain financial freedom
  5. Conqouring greed and fear - the two dangerous emotions is essential
  6. Staring young is indeed a great advantage


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