is day trading a good idea?wnd article

Posted: May 4, 2004
1:00 a.m. Eastern
By Dave Ramsay
© 2004 WorldNetDaily.com
Is day trading a good idea?

Dear Dave,

Why do you disapprove of day trading? I am thinking about doing this full time for a living. Can you shed some light on why you think this is a bad idea?

Jeff
Columbia, S.C.

Dear Jeff,

I have a simple answer for you: Because it doesn’t work! The Securities and Exchange Commission did a study back when the economy was booming on this very topic. They said 78 percent of day traders lost money. That is almost eight out of ten people who lose money by day trading. If you told me you wanted to get into any business where eight out of ten people lost money by doing it, I would tell you not to do it. This is not a business that makes money.

Day trading is for the arrogant and the proud who think they can beat the market. The only way you can beat the market is to get in it and stay in it for a long time. Buy a mutual fund and leave it alone for 20 years. You’ll make money every single time.

On top of that, it can become an addictive game to some people. I’m not saying that would happen to you, but there have been numerous people in and out of our office who have lost tens of thousands of dollars by day trading because they were addicted to day trading. This is not a game. The only people that make money from day trading are the firms that teach people how to do it. Do not day trade. The best advice I can give you on the topic is to stay away from it and find something else to do with your life.

Dave