If you saw an article with the headline
what would you think?
- That the broker lost $400k in customer funds day trading?
- That yet another person fell victim to the trap of day trading?
- That profitable day trading is just what you thought… impossible?
If so, you’re not alone. That’s exactly what the average person would think. And the newspaper editor knows that.
However, if you actually click and read the article behind this particular link you’ll discover a reality far different from that promoted by the title.
- The broker was actually convicted of theft by deception and money laundering
- That he transferred most of the money from business accounts to his personal account
- That he used about 30% of the funds ($120k) to open an account at a day trading firm… which, by the way, bars its members from trading other investors’ money
- That the broker stole the $400k from a total of 4 clients… and that 81% ($324k) was from a single victim
Of course, none of this is to say that the broker’s actions weren’t reprehensible.
In fact, it might be argued that his sentence [10 years] was too light.
My objective here is to make the point that day trading is such a common target for the whipping post that journalists, bloggers, and assorted other members of the media have no problem using the “dreaded phrase” to generate curiosity clicks.
Here’s the truth… Most people can’t profitably trade for themselves… Let alone day trade. Not because it’s impossible to do. But because most people are incapable of changing their mindset sufficiently to interact with the markets profitably.
Again… not because it’s impossible to trade profitably. But because they’re unable to bring themselves to believe the truth about trading generally… and day trading specifically. That done simply and prudently, it’s not only possible to trade profitably, but much less difficult than they ever dreamed it could be.
I started talking about SHLD among other retail names about least 2 years ago. Here’s a post I made to Facebook month’s ago about it. The post discussed my multiple previous negative posts about the stock… and suggested the stock still had more downside notwithstanding the low price level.
Do yourself a favor… Don’t take negative press around and about trading at face value. Apply the same skepticism to negative media that you apply to talk of overnight trading riches.
Both are about as likely to be true…
And the truth is, as ever, somewhere in the middle.
Yeah… I said it.