REAL WORLD Read This To Avoid Unpleasant Surprises Retail Trading Myths by Don Bright Besides being licensed, you have other hurdles and benefits to be aware of in trading with other people’s money as well as your own. Last time, I outlined some of the primary differences between professional stock trading and retail stock trading. This time, let’s explore some of the myths behind retail/online trading. Let me clarify a few things. In general, trading for a living involves 25 to 200 trades per day, and a daily share volume of around 60,000 and up. In contrast, retail investing is when you make five to 20 trades per week. Investing online is fine, and is actually the preferred way to get into or out of a particular stock. However — and this is an important distinction — investing is not trading. Investors try to get a good return on their investment dollars and try to outperform the market. Traders make money trading based on their skills, efforts, and time. |
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