REAL WORLD
Is It For You?
Professional Stock Trading
by Don Bright
What it is, what it is not, and how to make the leap!
The term professional is sorely overused these days. What does it really mean? When it comes to stock trading, the answer is actually quite simple. A professional trader does not trade as a retail customer of a brokerage. The distinction, and all the inherent benefits, often make the difference between long-term financial success and failure. Please don't misinterpret what I am saying: I am not saying the difference is "professional vs. amateur" -- I am saying "professional vs. retail."Since the recent explosion of interest in the stock market in general and daytrading in particular, many retail brokerages have opened what they refer to as trading offices to cater to the active trader. These retail brokers have marketed to their customers the idea that they can, and perhaps should, daytrade from home as well. These brokerages supply these traders (and wannabes) with the tools with which to trade, but this is only a small part of what is required to be successful in this arena.
At-home investing is fine, and actually a big step up from using a live broker. Online investing offers freedom and lower costs, allowing the casual trader or hobbyist to make several trades a week or a month. This is not trading for a living (although I realize that some do make a living doing this) -- at least, not as defined by regulators and exchanges.
...Continued in the March 2001 issue of Technical Analysis of STOCKS & COMMODITIES
Don Bright is a principal in Bright Trading (www.stocktrading.com), a professional equity corporation with offices around the US.Excerpted from an article originally published in the March 2001 issue of Technical Analysis of STOCKS & COMMODITIES magazine. All rights reserved. © Copyright 2001, Technical Analysis, Inc.
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