Why I'm not a Day Trader
One of the most common questions I get from friends or coworkers when they find out I'm an avid participant in the stock market is, "What are you, a day trader or something?" I personally hate to be thrown into that bucket because it's just not what I do. I don't like labels anyway, but if I had to have one I'd be more appropriately called a swing trader.
Here are the reasons I don't day trade:
1. I don't have time.
2. I don't need to. The scoreboard says it all. I'm thrilled with the results versus the amount of time invested.
3. I have a full time job.
4. I've proven to myself that I'm not as good of an individual stock picker as I would like. Being really good at it takes tremendous amount of time and energy. I'd rather be playing with my kids.
5. Super-computer algorithms. If you think you can outsmart the particle scientists, physicists, and artificial intelligentsia writing these codes.. I say good luck. You are a better man or woman that me.
6. I don't need to. Oh wait, did I already say that?
7. I don't want to pay commission fees every day. That just murders your returns. I've made 8 trades this year. This includes buying and selling. That is much more palatable than the 200 or so that I would have made if I bought and sold once each trading day this year. That's almost $2k in trading fees. No thanks.
The RumWave method is great for busy people who want good returns. No brokers, no individual stock headline risk (we trade Index ETFs), low cumulative commission fees for your trades. It literally takes less than 15 minutes to make a decision each day whether or not to buy or sell. My time spent at the computer has increased with my decision to write this blog, but it is something that I enjoy doing.
Best of luck to all your trades!