Is this a silly question .. Do investors do this??

metroman

Hi everyone,

Ive got this question knocking around my head, and hope somebody might be able to cast some light on it for me ... In laymans terms pleeeeeeeeeeeassse ! :rotfl:

Are there investors who might constantly buy and sell stocks and shares to provide a boost to their income?

tradetime

metroman wrote: »

Hi everyone,

Ive got this question knocking around my head, and hope somebody might be able to cast some light on it for me ... In laymans terms pleeeeeeeeeeeassse ! :rotfl:

Are there investors who might constantly buy and sell stocks and shares to provide a boost to their income?

Strictly speaking no, as they would be called traders, not investors. Investors invest (place money for a reasonably long time) Traders' trade (in and out of positions in anything from minutes to months) loosely speaking. Some do it for an income.

cheerfulcat

metroman wrote: »

Are there investors who might constantly buy and sell stocks and shares to provide a boost to their income?

Yes, though people who buy and sell frequently are more properly called traders. The word " investing " implies a longer term outlook - an investor might augment his or her income with dividends and perhaps the odd sale. There are plenty of people of both sorts who make a living by it.

RayWolfe

Yes. Some of them have become very rich, most of them have lost their shirts.
Do lots of research if you see this as a way forward.
Most people here abouts, are long term investors rather than speculators.

debbie42

RayWolfe wrote: »

Most people here abouts, are long term investors rather than speculators.

...and some of us do both. They aren't mutually exclusive!

Riq

Yes they do i.e. traders, the guy I lived with at uni works for Goldman Sachs and does it for a living, he gets paid very very well.

I went to visit him a few months ago and he picked me up from the station in his Porsche 911, makes me wish a) I studied harder & b) had a Dad who 'knows' people

purch

Yes they do i.e. traders, the guy I lived with at uni works for Goldman Sachs and does it for a living, he gets paid very very well

He's not Trading with his own money, which is different to the question posed by the OP.

Trading with the leverage and name of an Investment Bank and getting paid a generous salary, and potential bonus isn't the same as a Private Investor or Trader using his/her own money.

There are plenty of people who generate their income, or a good part from trading in financial instruments.

I 'retired' from the City @36, but most of my income nowadays comes from buying and selling Financial Instruments

Most people here abouts, are long term investors rather than speculators

That is true. And I would never consider myself a speculator (except on the 15:30 @Pontefract) as I consider the key to success is in taking a long term view in all sectors, even if you do sometimes make short term gains out of those views.

Riq

I suppose yes, but it is in theory the same thing.

metroman

Hi everyone, and many thanks for all your replies ... It was just great not to hear people say "DONT DO IT" and im feeling more positive then ever now to get going

Could someone possibly give me any ideas as to where to go to begin researching this subject?

Cheers :beer:

old_boy_57

Metroman, I don't know if you have started this venture yet or not but a good way to test your talent without loosing your shirt is to play one of the virtual games on http://uk.fantasytrader.yahoo.net/ or http://www.bullbearings.co.uk/

Good luck.

tradetime

metroman wrote: »

Hi everyone, and many thanks for all your replies ... It was just great not to hear people say "DONT DO IT" and im feeling more positive then ever now to get going

Could someone possibly give me any ideas as to where to go to begin researching this subject?

Cheers :beer:

Well although no-one says don't do it, and I would certainly not be one, there are some things worth knowing. It is fairly widely accepted that somewhere between 80-90% of people who try to make money short term trading fail. That said, if you've got what it takes and can master it, it's a great way to make your living.
As for info on the subject there's a huge amount out there, just google "daytrading" "swing trading" and "position trading" Avoid paying for anything until at the very least you've sifted through all the free resources, and as a rule of thumb avoid the stuff that promises to make you rich quick.
Things to consider would include but not be limited to, what markets you want to trade in, what instruments, and what time frame.
But expect a long road of learning ahead, don't plan to give up your day job anytime soon.
Lot of free info on this site, also used to be a lot of squabling amongst some of the posters.
http://www.trade2win.com/