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Many longer-term investors simply do not make this kind of distinction, viewing much more risk in trading short term, whether or not the position is held overnight. They view any attempt to time the market as fraught with peril. They are concerned about the commissions raked up in trading frequently and the short-term capital gains taxes that must be paid that take a significant bite out of profits. |
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For Active Traders: Home or Away? |
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For those who are considering active trading, which we will define as a few trades per day to a few trades per week, combined with dedication to ongoing monitoring of the market, the two basic choices are to trade in a trading room at a professional retail firm or on one's own at home. |
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The benefits of using a trading room include the following: |
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The use of state-of-the-art hardware, software, and direct access connections for instantaneous execution and feedback. |
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The emotional support of other traders. |
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The availability of an expensive but hands-on training course using their sophisticated computer systems and software. |
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The availability of experienced traders who help a novice learn the ropes when they have free time and give valuable feedback on mistakes made. |
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A focused environment, free from the possible distractions in a home setting. |
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Hardware, software, and connection provided, no need to weigh or decide on options. |
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The possibility of social contact, information sharing, learning from others. |
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More reliable computer systems, less chance of downtime. |
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The distinct separation between work environment and home, making it easier to get away from work for those who find this desirable. |
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For those who want or need the structure of going to their ''office" of the trading room each morning and who don't do well in getting |
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