I was sure that my brother had gone crazy when he told me he was quitting his paying job to become a full time day trader. Gerald had always been the responsible one and he'd never made a rash decision in his life. He began working out of his own home office, quitting his job at the bank in less than a week. I was speechless towards my brother. My brother always was my role model, so I couldn't point out his faults.
But when I thought of my three little nieces, I decided I had to step and ask some questions. I arrived at his home one weekend and asked him what was going on? I asked him why he gave up his great job that gave him a solid income and benefits. Gerald simply smiled and responded in his usual cocksure way that he knew what he was doing. At that point I nearly lost it. I told my brother he was self-centered, and he should think about others. I regretted it as soon as the words came out of my mouth, but my brother simply smiled and said I was right.
Though I had almost no interest in the stock market, Gerald pulled me aside later that evening and insisted on explaining to me why he had decided to become a day trader. To me it was all Greek. I wasn't really interested in day trading or the market. But my brother told me it wasn't all black magic. He told me that there is a predictable rhyme to his reasoning.
I listened to his spiel. It could sometimes take watching a stock for several months before deciding if it was worth it for them to trade it. In the end, it all came down to patterns. According to my brother, there are patterns on a daily basis that each stock moves on. Though you couldn't exactly set your watch by these patterns, they gave brokers a good hint about where the price of a stock was likely to go.
And this was how my brother made his fortune. He never bet too heavily or put all of his eggs in one basket, but rather purchased small quantities of equities he thought would appreciate in price and watched them until it was time to sell. It was not uncommon, he said, for him to trade the same stock dozen of times a day. Though a successful day trade yields short term results it offers chances for repetitions during the course of a day.
His success at learning how to day trade got me interested to try my hand at it as well.Lucky for me, my brother is a great teacher, showing me what I need to study and learn how to do in order to be successful at
day trading.While I do not expect to be as successful as my brother has, if I could just get proficient enough to earn some extra money that would be great.I really am glad I took the leap and learned about trading the stock market.
