Day Trading vs Swing Trading vs long Term

This is the reality about day trading vs swing trading vs long term trading that no one wants to hear.

Any business that wants to be profitable would need to provide a product or service to the customer base on supply and demand. The business would need to provide what the customer wants. Not what the customer should have or need.

Think about for a moment, use that beautiful brain you have.

Product like soft drink, alcohol, tobacco and cigarette to name a few. Are they good or bad to your body? Most likely would you think that they are bad.

Yet there are still being sold to you even though they are bad for you.

Why is that?

It’s because that’s what people want.

The government has the power to stop or ban any product or service they want. Yet, why don’t they stop or ban the sell of products like soft drink, alcohol, tobacco or cigarette?

It ‘s because of taxes. The government receive huge amount of revenue in taxes. Just in case someone decide to mention prohibition, that doesn’t change the fact the government has the power impose laws to their citizens.

This bring us to Day trading.

Day trading brokers make profits by providing what people want. In this case what traders want, not what they need. Day trading brokers make money whether you make money or not. It’s a business that brings a lot of revenue to the gov.

Since you have the power of choice regardless of gov intervention. You have decide by yourself what’s best for you.

Now, have you ever heard the saying that taxes is your biggest expenses.

From a taxes point of view.

Currently day trading is tax the higher. it’s tax as ordinary income.

Follow by swing trading, I guess you can look at it like tax in middle.

Then follow by long term trading.

Depending you on your income level and your trading strategy you may pay 0 taxes on long term trading but that’s for another topic.

One is not better than the other, because what work for me, may not work for you. And what works for you may not works for another person.

However, if I for mysterious reason were able to speak to my youngest self. I would have told my youngest self to create a world wide portfolio with many different portions. 3 of them specifically for trading.

A portion of that portfolio would go into long term trading. With different strategies. One of them being with the buy, Borrow, die strategy.

Another portion of that portfolio would go into swing trading. I have to keep the trading skills sharp.

And another portion would go into day trading, call the fun portion. The best people in the world, they practice and love what they do everyday.