# Day Trading: Real Profession or Get-Rich-Quick Scheme? **URL:** \ **Category:** Factual Questions\ **Created:** [November 30, 2002, 9:09pm UTC](https://boards.straightdope.com/t/day-trading-real-profession-or-get-rich-quick-scheme/139673 "2002-11-30T21:09:02Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![ricksummon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ricksummon/32/3333_2.png) [@ricksummon](https://boards.straightdope.com/u/ricksummon)\ **Post date:** [November 30, 2002, 9:09pm UTC](https://boards.straightdope.com/t/day-trading-real-profession-or-get-rich-quick-scheme/139673/1 "2002-11-30T21:09:02Z")
Is day trading a realistic method of making money, or is it no better than one of those “Make Money Fast” chain letters by Dave Rhodes? If people really CAN make money this way, are there any honest books that teach you how to do it? ---
**Author:** ![friedo](https://avatars.discourse-cdn.com/v4/letter/f/8edcca/32.png) [@friedo](https://boards.straightdope.com/u/friedo)\ **Post date:** [November 30, 2002, 9:52pm UTC](https://boards.straightdope.com/t/day-trading-real-profession-or-get-rich-quick-scheme/139673/2 "2002-11-30T21:52:11Z")
As with most things, it’s possible to get rich by day-trading with a few good strokes of dumb luck, but as an overall investment strategy it is very foolish. History proves that sensible long-term investing will nearly always yield excellent results, whereas day-trading is more akin to a slot machine. ---
**Author:** ![SandyHook](https://avatars.discourse-cdn.com/v4/letter/s/dec6dc/32.png) [@SandyHook](https://boards.straightdope.com/u/SandyHook)\ **Post date:** [November 30, 2002, 10:01pm UTC](https://boards.straightdope.com/t/day-trading-real-profession-or-get-rich-quick-scheme/139673/3 "2002-11-30T22:01:44Z")
Yes it is. It’s also a good way to loose everything you have and find yourself living in a dumpster while you bum change from total strangers. A couple of things for you to consider. Do you have any idea what causes stocks to move, either up or down, in price? Do you have any method, assuming you answered the above with a resounding “Yes”, of determining when these events will occur? Day trading in stocks isn’t nearly as dangerous as commodity futures. Mostly all you can lose is whatever you choose to invest. If you can afford it, give it a shot. But it’s like going to Vegas in that you most likely won’t make much and have an excellent chance of losing. ---
**Author:** ![CookingWithGas](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cookingwithgas/32/485_2.png) [@CookingWithGas](https://boards.straightdope.com/u/CookingWithGas)\ **Post date:** [November 30, 2002, 10:14pm UTC](https://boards.straightdope.com/t/day-trading-real-profession-or-get-rich-quick-scheme/139673/4 "2002-11-30T22:14:56Z")
There are specatacular stories of day traders who have hit it big, and as many who have lost their shirts. There was a story on a TV network news show (60 minutes, 20/20, one of those type) about one guy who lost all the money he had saved up to go to law school. It’s not at clear whether skill, knowledge, or luck is most important. To **SandyHook’s** point > [@](#): > > Mostly all you can lose is whatever you choose to invest. the “mostly” part is true, but short sales are one technique used by day traders and there is no loss limit if you make a dramatic error. And to echo **friedo** , do not confuse day trading with investing. ---
**Author:** ![KellyM](https://avatars.discourse-cdn.com/v4/letter/k/57b2e6/32.png) [@KellyM](https://boards.straightdope.com/u/KellyM)\ **Post date:** [December 1, 2002, 12:42am UTC](https://boards.straightdope.com/t/day-trading-real-profession-or-get-rich-quick-scheme/139673/5 "2002-12-01T00:42:10Z")
Daytrading is, in fact, a get-rich-quick scheme – for stockbrokers, who collect a commission on each and every one of your daytrades, whether or not you make money. The more you trade, the more they make, which is why they encourage daytrading. ---
**Author:** ![Sam\_Stone](https://avatars.discourse-cdn.com/v4/letter/s/ecccb3/32.png) [@Sam\_Stone](https://boards.straightdope.com/u/Sam_Stone)\ **Post date:** [December 1, 2002, 12:58am UTC](https://boards.straightdope.com/t/day-trading-real-profession-or-get-rich-quick-scheme/139673/6 "2002-12-01T00:58:34Z")
More precisely, for non-institutional investors it’s essentially gambling, with the stock commissions being the house ‘rake’. What made it so popular for so long is that the bubble was rising so fast that it was actually allowing almost anyone to make money in the market. But by and large, those day traders who made money would have been even better off if they had just bought some good stocks and held them, because their commissions would have been lower. It’s funny how you don’t hear much about day traders in a bear market, though. ---
**Author:** ![KidCharlemagne](https://avatars.discourse-cdn.com/v4/letter/k/ed8c4c/32.png) [@KidCharlemagne](https://boards.straightdope.com/u/KidCharlemagne)\ **Post date:** [December 1, 2002, 1:15am UTC](https://boards.straightdope.com/t/day-trading-real-profession-or-get-rich-quick-scheme/139673/7 "2002-12-01T01:15:08Z")
> [@](#): > > \*Originally posted by Sam Stone \* > \*\* It’s funny how you don’t hear much about day traders in a bear market, though. \*\* As the saying goes, “Don’t confuse brains with a bull market.” It’s not necessarily a “get rich quick scheme” but many people treat it as such. I’m a retired professional futures speculator and I suppose I did get rich relatively quick but I worked hard. It’s a full time job.