A Cautionary Tale

by Dual Income No Kids on August 26, 2006 · 0 comments

Daytrading. Nearly all the personal finance books I’ve read say that daytrading is a BAD idea. They give three reasons why this is the case: 1) daytrading subjects your investment to short term capital gains taxes, 2) short holding periods rule out large returns and 3) high trading costs reduce profits.

That said, since Miel and I sold our shares in the Hansens Natural Corporation, I have been daytrading and have lost a good deal of money. After trading the Exxon Mobil Corp. (XOM) and taking it on the chin in the amount of $2,622, I made about $180 trading Frontier Oil Corp (FTO). After that, I then made another $660 from Evercore Partners (EVR). Despite two winning trades, the bottom line is I’m down $1,944.

So, in the hope of salvaging something from my losses, I offer my bad behavior as an example.


Instead, follow a prudent buy and hold strategy. Thoroughly research your investments and market conditions prior to investing.

Hope this helps,


Like DINKS? Subscribe!


Subscribe to get the latest DINKS Finance content by email.

Powered by ConvertKit

{ 0 comments… add one now }

Leave a Comment

This blog is kept spam free by WP-SpamFree.

Previous post:

Next post: