Is It More Difficult to Make Money Trading Stocks?

There was a time when so many people were having discussions about trading in the stock market. Whether they were trying a buy and hold strategy or shooting their shot at day trading, it seemed as though technology opened doors that seemed shut decades ago. While there are still a lot more investors managing, they’re on trades, things seem to be shifting. It appears that some people that had attempted to manage their own portfolio have chosen to put it in the hands of a broker again. Perhaps that’s in part because of algorithmic options trading and other techniques that require more time to study charts and the market to make smart moves.

Without a doubt, there is a lot more information online about the stock market. That means it’s easy for a person to find out about a stock before they make the trade and study the charts to make an informed decision about what to buy and how long to hold it based on the same type of information that’s used by professionals. The problem is that many of the strategies used today are so complex that it requires an extensive amount of research in order to truly make wise decisions. Yes, it is still possible to be successful on your own and there are still people out there doing it, but it probably won’t yield the results you anticipated.

What tends to happen is what has always happened with investing. You jump in the market time an time again only to experience the frustrating impact of make a bad trade. Once that happens, there’s the psychology effect of losing money through bad trades. The fear that sets in has always been a consideration because it changes your behavior in the market. Even if you don’t think it will, it does. Sometimes having a number of bad trades can completely disrupt your ability to be effective. Seasoned investors would probably recommend that you sit it out until you can get your head back in the game.

There are some that believe trading, especially day trading your own money is essentially gambling. A good argument could be made on both sides. Some say that your broker is gambling your money too, so either way there are risks involved. The reason why some day traders went and got a day job is because they felt the job of investing their life savings was better life to a broker who is not emotionally tied to the trade. Perhaps a lot of people would agree that it makes sense.

The question of whether it’s more difficult to make money in the stock market these days is probably no. There really isn’t anything new under the sun, to some degree, and the challenges that exist today were prevalent years ago. While there are still risks involved in every investment, trading your own money should be done with knowledge of the factors mentioned so that they don’t get the best of you.