Trading or daytrading is one of those 'activities' that get you better as you age or 'experienced' The best daytrader was 75 year lady in New York. okay. she was manually daytrading with no computer automation or all this fancy algorithms stuff. Daytrading is same 'economic value' as hitting the race tracks or hitting the slot machines.
I disagree with age, you don't get better with age. -- Only to a certain extent, and that extent is loosely, generally 3-5 years after you initially begin. There are alot of old fools in the market with 'decades' of experience, but still can't trade for shit...and have nothing to show for it. You can accomplish a mountain of success with trading and the market. If you truly know what you are doing and have found your place in the market life. That 75 year old woman could possibly be the best trader. Who truly knows. -- That profile can fit anyone, from any age or race group or walk of life. If you make a million bucks in a casino, they will all inevitably kick you out. No market or brokerage will kick you out for making a million. They will infact High-Five you instead ,
Trading is life blood of capitalism and it is a necessary evil. It helps in price discovery. Traders bear astronomical risks in the process of discovery. Otherwise the burden will pass on to the public. Without trading, the truth value of companies, countries, currencies, crude oil, steel, wheat, Bitcoin, gold, etc...will never be known. People can charge whatever price they want. Imagine a company requires a minimum of $100,000 to buy it's shares for investment, but it only worth $1,000 through trading. Will you do it? Imagine pension/Harvard endowment funds buy high yield foreign bonds to invest a billion dollars. Only after they buy it a day later, they realize from the news that the country go bankrupt and default. Have the bond traded, they will instantaneously know something is wrong before they make any investment.
Trading provides the following value: 1. Price discovery (as said above) 2. Liquidity which reduces the required risk premium for assets and friction in the economy. Trading has the following negative consequence: It can overstate fundamental moves and that can have significant effects in the real world The first example of this was the financial crisis where traders were pushing bank stocks lower to the point that solvent banks were becoming insolvent due to the fear that the stock market knew something. That's why they instituted the short sale ban. Second example was the commodity bubble in 2011. The rise in many commodity prices was not for fundamental reasons. It was a momentum trade that impacted real economies and was the spark for the Arab Spring in 2011, which of course has led to the civil war in Syria.
except for the last sentence/paragraph it was a worthwhile post. it is a skill to know when it is time to be silent. you made the sale. now keep quiet.
"Learning to trade" is a valuable lifetime skill. Doesn't mean "scalping", but rather when to go on/off the risk. Just because you turn 65 doesn't mean your need for a good return on your money has come to an end. One doesn't always have to be a screen jockey. At any age, "good trading" can mean knowing where things stand and checking the markets daily to make decisions about ETF/Mutual Fund positions.
is this an advertising of the day-trading for seniors? i personally doubt this 75 lady ever existed... personally i do not want to trade at 75 - it is really boring as for the trading value for the society - i personal do not give a slightest damn and i do not believe any trader does
As this is the second thread today that you've started on the subject of seniors, I fear you've found yourself on the wrong site. It happens as we age. Please point your browser to AARP.com.
Retail traders or floor traders add no value to the economy. it's just total speculation and gambling or betting on prices..yep prices in the real economy. as for price of commodities,, 'traders' in the options pit or futures exchange in Chicago or whatever 'exchange' don't set or determine the price...what don't you understand!