Leon Tepper of TeppersList Explains How Day Trading Can Ruin People’s Lives
Tags: Invest, Trading, Investing, Live, Money

If you’re an investor, you know what day trading is. But do you know how damaging it can be for a new trader? Day trading and investing for the long-term are both viable forms of securities trading, but day trading involves taking trades that may last for seconds or minutes, requiring a significant time investment and depth of knowledge.

Leon Tepper is the founder of TeppersList.com, a stock advisory firm serving individual ‘do-it-yourself’ and institutional investors. He explains why day trading is so dangerous, and what you can do instead.

Day Trading Vs. Long-term Investing

Leon Tepper says that day trading can be defined as buying and selling stocks throughout the day with the hope of cashing in on small fluctuations in price of high liquid stocks or indexes. As is the case with other forms of investing, the ideal situation involves buying low and selling high. Day traders want to make money by successfully completing numerous sales in the same day.

Long-term investing on the other hand, consists of taking trades that stay open for days, weeks, months, and sometimes even years. Leon Tepper explains that day trading and long-term investing differ in terms of capital requirements, time commitments, skills and personality requirements, and potential returns.

Leon Tepper on the Risks of Day Trading

The truth is, Leon Tepper explains, that day trading can earn you serious money, provided you have the time and can afford to take the financial risk. However, the list of cons often overshadows the benefits, especially if you are new to investing.

One of the first downsides of day trading is that it is very expensive. As a day trader, Leon Tepper explains that you need the right software and computer to spot price variations and access the necessary financial information. And with so many “trading-guru’s” out there, which software should you pick? Now, as you may acquire capital losses and gains as a day trader, taxation can become a bit of a nightmare. In addition, you need to have the risk capital to protect yourself.

Another potential risk involved in day trading is that your success may be tied to the nature of the current market environment. When the market is in a period without significant upward or downward movement (also called a “sideways market”), day traders tend to lose money. This level of unpredictability makes it crucial for you to be as knowledgeable as possible on the market.

Lastly, Leon Tepper explains that day trading comes with a steep learning curve for new traders and increases the chance of failure. It entails the most trading proficiency and skill of any type of trading simply because it is so fast paced. This requires you to analyze the market and make decisions quickly. It is a high-pressure, stressful job that takes discipline and strategy, and you can’t allow your emotions to affect your trading decisions (which happens to be the number one reason why most day traders lose).

Looking for a safer investment opportunity? Leon Tepper founded TeppersList specifically for this reason: to offer a unique, profitable model for investing. His concentration on commodity and stock selection has cultivated a precise top-down, macro-to-micro strategy to maximize profits and manage risk.