Is it worth it to be a day trader? · Invest & Retire Community

Is it worth it to be a day trader?

772 - Mike S made 28% from SOXL in 4 months

Recently, I hopped on a few calls with people who are failing at day trading (losing money).

This prompts the question - is it worth it to be a day trader? (I am sure you already know the answer but here's the math to prove it to you)

I believe in finding the most profitable strategy (30% per year+) while using the least amount of time (I dislike sitting in front of the screen, watching the candle ticks)

I believe that there's more to life than monitoring the market all day.

So I was on this call with the day trader and he said, "How can you enter into monthly passive income trades when the market on Monday is different than Tuesday is different than Wednesday is different than Thursday?"

This is a classic sign of day traders looking at the market too closely trying to capture every tick in the market.

Instead - the focus should be:

1. What's the probability of this trade? Using my probability calculator - if it is over 90% - you're good.

2. What's the technical and fundamental analysis? If it is good, then fantastic

3. Is the return attractive? 3% or more each month - yes? Fantastic.

Whether the market is up or down in one single day doesn't really matter once you zoom out.

And if you are a day trader, this is what you need to beat.

Average S&P and tech goes up by around 10-20% per year, so you need to make 1% to 2% a month to beat the index

For my monthly passive income strategy, it is making 35% for the first 8 months this year (annualized 40-50%), so you need to make at least 3% - 4% each month to beat my monthly passive income strategy.

This means for day trading to be worth it for me, it need to make 5% to 10% per month (50% to 100% per year) for me to consider it.

Then take a step back - how likely is a day trader to make 50% to 100% consistently year after year?

Cheers,

Eric

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Eric Seto

Chartered Professional Accountant (CPA)

Chartered Investment Manager (CIM)

Founder of 5MinInvesting.com

In September, my goal is to help 5 people without a financial background to master investing through Investing Accelerator.

Investing Accelerator is designed for people without a financial background.

The goal is to achieve 30% return per year.

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In the second phase, you will learn monthly passive income to provide a more predictable cash flow (target 30% per year) which can cover your expenses. This will help accelerate your retirement goals.

If you are interested, then let's hop on a call to see if you can benefit from the strategies in Investing Accelerator and get 30% per year.

During the call, we will map out exactly how you can achieve 30%, what you are lacking, how you can improve.

If you have any questions about the program, you can ask during the call as well.

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Remember to go to the Classroom tab for additional investing resources.

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