Tuesday, November 10, 2009

Day Trader No More

I have an uncle who was a day trader for a very long time. He did a lot of Online Trading during the day. He would buy a stock when it was low and attempt to sell it quickly when it spiked ever so slightly to make a quick buck. He soon realized after awhile that the stress was overriding the profit. Even in a market that may be a bit of a bear, people can still gamble on gains throughout the day. In the end, he decided to fold and get out of it.

A few months later, he decided to go back into the Stock Trading game. This time, he decided to do something that would have a bit more stability, such as concentrating on mutual funds and investing a small amount each week. He would buy high and low and it would all even out.

Because of his self service history, he was not comfortable visiting a brokerage and being content with a monthly statement. He wanted to be very hands on. He found that with Firsttrade.com, he could obtain an Online Broker without ridiculous fees that offered what he was looking for. There are over 10,000 mutual funds on the site that the brokerage would help him buy into. My aunt sure is a lot happier now that he has something that he regular contributes to in small amounts, versus gambling their savings away every few days.

I am thinking of going back and starting a mutual fund again, and I am going to seriously consider the site.

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