So a question we here a lot is from parent who runs semi successful small business that their sons, usually 99% are sons, wants to do day trading and selling and buying crypto-currencies and so on!.
Instead of working in the family business.
There is a fact that is the cold hard truth and that is that 80% of all day-traders who buy and sell normal financial instruments lose money, but the same can be said about those people who trade crypto currencies also.
So this illusion that your kid has that he can become successful on day-trading is just an illusion.
We can tell you who the 20% are who makes money on day-trading are so you get a better picture of how this works in real life.
So the 20% of the people making money have big bank rolls and they can have millions of dollars invested, and they will survive longer in a bear market.
Most of the times, what happens is that the day-trader is semi successful in the first year, they hit some winners, but then they start to invest with more risk, and they only need a few bad picks and then they are skint!.
So number one is that you need a big bank roll.
The second thing is that you need a financial background in investing and trading if you are gonna sit and day-trade.
Day-trading is much different from investing in a individual stock that takes off, or investing in mutual funds over a long period of time.
You simply need to know much more about trading than most traders do!.
Now somebody is gonna come in and say that what about bitcoins and other crypto currencies and many hit it big on bitcoins for instance.
Let us burst that bubble for you, bitcoins was a one hit wonder and even if 10% made money on bitcoin over 90% of the people investing in in later has lost money.
Not to talk about the people that has lost huge money in pure crypto currencies scams!.
So a big congrats to all the people that bought crypto currency early on and sold it prior to it dropping 50-90% when the masses came in and started investing.
So when your young adults or barley legal kids come and say that they will be the next Gordon Gekko (Wall street movie) from the 80s with Charlie Sheen, you burst there bubble with statistics that 80% of the day traders will lose money.
So there is no future for your kids to sit and day trade rather than go out into the real world and get a real career going!.
Thank you for reading.
mrlifeadvise.
