2023 EP1007 | Financial Updates | Risks & Rewards of Day Trading

Fueled by COVID lockdowns and the rise of commission free brokerages like @Robinhood, online trading, or "day trading" has seen a huge rise in popularity in the last few years. However, according to several recent financial studies, almost all "day traders" lose lots of money, particularly after accounting for fees and taxes.

If you're considering self-directed investing, @peter with @richonplanning and @erinkennedy break down the pros and the cons, and Peter offers these considerations before you create an online trading account:

1. Consider Your Approach and Expectations: if your expenses are covered by income and you are making contributions, downturns can actually be opportunities! Whereas, if you're taking income and withdrawing during downturns, that can represent a distinct disadvantage
2.  Consider Your Risk Tolerance: how much loss are you comfortable with?
3. Consider the Risks: specifically, Behavioral Finance which has proven that average investors underperform investors that utilize an advisor. And secondly, Taxes... most "day traders" move money without knowing that they're creating "taxable events." If you'd like to talk to Peter to determine if some self-directed investing makes sense for you and how to create pre-determined "guardrails" that are in line with your risk tolerance, please give him a call at (919) 300-5886 or visit www.RichonPlanning.com
4. #DayTrading #InvestingTips #WealthManagment