The stock market can be traded

I was sure that my brother had gone crazy when he told me he was quitting his paying job to become a full time day trader. Gerald is well known for always approaching things carefully and never doing anything in a reckless manner. He began working out of his own home office, quitting his job at the bank in less than a week. I didn’t know what to say to my brother. My brother always was my role model, so I couldn’t point out his faults.

However, when I remembered my little nieces, I thought I should take a step back and inquire. I arrived at his home one weekend and asked him what was going on? I asked him why he gave up his great job that gave him a solid income and benefits. Gerald simply smiled and responded in his usual cocksure way that he knew what he was doing. At that point I nearly lost it. I told my brother I thought he was selfish and that he had to think about other people for a change. I regretted it as soon as the words came out of my mouth, but my brother simply smiled and said I was right.

{Though I had almost no interest in the stock market, Gerald pulled me aside later that evening and insisted on explaining to me why he had decided to become a day trader.} To me it was all Greek. I wasn’t really interested in day trading or the market. But my brother told me it wasn’t all black magic. He told me that there is a predictable rhyme to his reasoning.

I listened to his spiel. Day traders that were successful, he said, usually only watched one or two stocks at a time unless they use a day trading robot. It could sometimes take watching a stock for several months before deciding if it was worth it for them to trade it. All in all, it just came down to patterns. According to my brother, there are patterns on a daily basis that each stock moves on. You can’t really set your watch by these patterns, but they give a good hint to brokers about what the stock price will be in the future.

And this was how my brother made his fortune.  The way he made his money was simple. Instead of buying big, he bought small and watched his profit grow slowly over time. It was not uncommon, he said, for him to trade the same stock dozen of times a day.  Though a successful day trade yields short term results it offers chances for  repetitions during the course of a day.

This got me interested in learning how to day trade as well.Lucky for me, my brother is a great teacher, showing me what I need to study and learn how to do in order to be successful at day trading.While I do not expect to be as successful as my brother has, if I could just get proficient enough to earn some extra money that would be great.I really am glad I took the leap and learned about trading the stock market.