Easy Money?

Question from a reader

Hi Brian,

First off, I would like to say thanks for all of the valuable information on your site, from MACD divergence to daily analysis. My first question is, do you think the beginner to novice investor should invest their money into the market at the moment or near future? I know we are still in a primary downtrend, but I’m quite eager to make some money like you!

Another question I have is why day trade/short-term trade instead of “value investing” ? Don’t taxes hurt your gains?

I am only 18, but I have a knack for making “easy money.” It must sound nice to never have to really do labor-work since you just sit at home and day trade (and more interesting as well). I’m just curious of the way things work on the stock market and how people like yourself live day-by-day making fabulous amounts of paper money without ever have to “work.”

Thanks alot Brian, best of trading to you and thanks for all the tips and lessons!!

My Response

Bryant,

I am glad you are enjoying the videos. I am afraid I cannot give you much help with investing, I am a trader and an investment to me is a 2 week hold. The volatility of this market makes it very difficult to make investments, you should think of them all as trades and if you can continually raise your stop, maybe it will turn into an investment. Most people do it backwards, they get in, the stock drops and then they hold. You want to get in, if it drops take a small loss or if it moves higher adjust the stops until you get taken out.

There is no substitution for putting money in the market, paper trading has no emotions attached to it and is generally a waste of time after a couple of weeks

Paying taxes means I am doing it right, leave the tax concerns for an accountant, the name of the game is maximum capital gains.

I dont know what you are doing to make easy money, but I would suggest you continue with that as your primary business and slowly work your way into the market. I know of no other business (trading) where I have seen so many people lose a lot of money. There is a saying “make money in real estate and lose it in the stock market”. The market is not easy, the most important thing is to be disciplined.

Brian