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DeviouslySimple · 08-15-2003, 04:48 PM

I've spent some time studying and also doing online trading, about 3 months reading, less than 2 months watching someone trade a bit and then about a month trading solo.

I am curious how people approach online trading in general, what tips they have and their experiences. I'll go on with my own in detail on a reply soon but I want to introduce this with the following:

First off, the way interest rates are now, you are simply being robbed of your money if you put it in a bank. 1.5% interest doesn't beat inflation, nor does it cover all the ridiculous check, deposit, late, overdraft, transfer, finance, bank, tax, and fee fee fee this fee that which the banks subject you to.

In order to get an investment a step above this, you can get a bank funded CD which locks up your money for X months (or a year+) but usually will get you 2-3% instead.

T-Bills and government bonds will net you 4-6% annually on your money but can tie it up for quite a while. Now, the 30 year bill is out of active circulation which has changed the game slightly.

Finally, you have the stock market which averages 7.3% annually (some random study, no I don't recall the source. Each business source tends to fudge this figure a lot regardless), although the idea of a market-wide average is very faulty if you want to talk about your real dollar.

And private investments, real estate, "ventures", personal businesses can earn a far higher return. Especially the commercial end of credit card and finance charges against consumers, etc...

There has to be a better way than working a standard 9-5, getting taxed 20-35%, taxed again for good measure, and then paying bills, which if you have a mortgage/car/student loans/any debts involved in with...can get ugly. Besides robbing banks or becoming prostitute/hitmen (I can't stomach the crossdressing part of this, damnit).

08-15-2003, 04:48 PM	#1 (permalink)
DeviouslySimple Upright Location: Stillwater, Oklahoma	Trading, money management, etc. I've spent some time studying and also doing online trading, about 3 months reading, less than 2 months watching someone trade a bit and then about a month trading solo. I am curious how people approach online trading in general, what tips they have and their experiences. I'll go on with my own in detail on a reply soon but I want to introduce this with the following: First off, the way interest rates are now, you are simply being robbed of your money if you put it in a bank. 1.5% interest doesn't beat inflation, nor does it cover all the ridiculous check, deposit, late, overdraft, transfer, finance, bank, tax, and fee fee fee this fee that which the banks subject you to. In order to get an investment a step above this, you can get a bank funded CD which locks up your money for X months (or a year+) but usually will get you 2-3% instead. T-Bills and government bonds will net you 4-6% annually on your money but can tie it up for quite a while. Now, the 30 year bill is out of active circulation which has changed the game slightly. Finally, you have the stock market which averages 7.3% annually (some random study, no I don't recall the source. Each business source tends to fudge this figure a lot regardless), although the idea of a market-wide average is very faulty if you want to talk about your real dollar. And private investments, real estate, "ventures", personal businesses can earn a far higher return. Especially the commercial end of credit card and finance charges against consumers, etc... There has to be a better way than working a standard 9-5, getting taxed 20-35%, taxed again for good measure, and then paying bills, which if you have a mortgage/car/student loans/any debts involved in with...can get ugly. Besides robbing banks or becoming prostitute/hitmen (I can't stomach the crossdressing part of this, damnit).