Day Trading Diaries
By:James Melton
Day trading is not for everyone. However, with the right strategies and a better understanding of the market, daily market engagement can be a viable method for making money and growing wealth.
In this Money Makeover video on the tastyliveTRENDING YouTube channel, Tom Preston—veteran trader, co-founder and chief market strategist at tastylive and a two-time fintech startup entrepreneur with $1.6 billion in exits —offers insight on how to trade effectively and responsibly. He does so by responding to two actual queries from Reddit users.
In the first instance, a boyfriend uses a couples joint bank account to day trade, losing almost all of the $400 monthly withdrawals.
Preston walks Rebecca through a more robust trading strategy that her boyfriend can use to consistently profit on his trades.
In the second case, a high schooler, is concerned about the day trading habits of his father—an MBA holder and data scientist—who insists on day trading and plans to create a trading bot.
Rather than focusing on day trading, Preston suggests, the father find a specific options strategy that is a belter match for his quantitative and math-oriented nature.
Of course, trading can be risky for the uninitiated. According to research by London Business School academics, amateur investors lost more than $1 billion trading options during the pandemic. Factor in trading costs, and the losses grow to about $5 billion.
But as Preston advises, not all day trading is not a fool's errand.
James Melton is managing editor of Luckbox magazine.
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
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Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.