Day Trading Diaries
Day Trading Diaries
By:James Melton
A 30-year veteran trader and fintech pioneer answers reddit letters about day trading
Day trading is not for everyone. However, with the right strategies and a better understanding of the market, daily market engagement can be a viable method for making money and growing wealth.
In this Money Makeover video on the tastyliveTRENDING YouTube channel, Tom Preston—veteran trader, co-founder and chief market strategist at tastylive and a two-time fintech startup entrepreneur with $1.6 billion in exits —offers insight on how to trade effectively and responsibly. He does so by responding to two actual queries from Reddit users.
Getting a better trading strategy
In the first instance, a boyfriend uses a couples joint bank account to day trade, losing almost all of the $400 monthly withdrawals.
Preston walks Rebecca through a more robust trading strategy that her boyfriend can use to consistently profit on his trades.
Consider options trading
In the second case, a high schooler, is concerned about the day trading habits of his father—an MBA holder and data scientist—who insists on day trading and plans to create a trading bot.
Rather than focusing on day trading, Preston suggests, the father find a specific options strategy that is a belter match for his quantitative and math-oriented nature.
Day trading does not have to be a fool's errand
Of course, trading can be risky for the uninitiated. According to research by London Business School academics, amateur investors lost more than $1 billion trading options during the pandemic. Factor in trading costs, and the losses grow to about $5 billion.
But as Preston advises, not all day trading is not a fool's errand.
James Melton is managing editor of Luckbox magazine.
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