Read This To Avoid Unpleasant Surprises
Retail Trading Myths
by Don Bright
Besides being licensed, you have other hurdles
and benefits to be aware of in trading with
other people’s money as well as your own.
Last time, I outlined some of
the primary differences
between professional stock
trading and retail stock
trading. This time, let’s
explore some of the myths
behind retail/online trading.
Let me clarify a few
things. In general, trading for a living
involves 25 to 200 trades per day, and a
daily share volume of around 60,000 and up.
In contrast, retail investing is when you
make five to 20 trades per week. Investing
online is fine, and is actually the preferred
way to get into or out of a particular stock.
However — and this is an important
distinction — investing is not trading.
Investors try to get a good return on their
investment dollars and try to outperform the
market. Traders make money trading based
on their skills, efforts, and time.