PJ Garcia

Day Trading......Gambling or is it a business???

Let’s go over a scenario. Imagine you open a clothing store. You go to a supplier who has a few boxes of clothes. You buy those boxes without opening them to inspect what style clothes they are or what they are even worth. You didn’t bother planning your business such as looking up demographics, prime location, or anything. You throw all your inventory on hangers and hope they sell. Your store is right in the middle of nowhere and you paid more for the clothes than what they are even worth. You open your doors and just hope to make profit. Sad to say, but many individuals treat day trading this way. This is gambling.

I’ll tell you what’s not gambling. Before opening the clothing store, you do your due diligence. You research demographics, pick a prime location and you research suppliers who will give you quality clothes at a very low price enabling you to potentially make a good profit. You open your doors after careful preparation with having positioned yourself at good odds of turning a profit. There will be a few items in your store that aren’t profitable but because of the research and preparation, the other items make up for those losses. This is how successful traders treat day trading. This is not gambling, this is business.

Treat day trading like a business!