I was in a somewhat silly mood this morning. My thoughts were about making money from the stock markets.
People with at least $1 million to put to risk day trading just stocks. Not options. Not warrants, or whatever else is out there outside of common stocks, which represent ownership in a company and its chances for making one money in terms of its change in price for the shares one bought.
There are roughly 250 trading days a year on US common stock markets, excluding the Saturdays and Sundays and the federal holidays. Let's do some simple third grade arithmetic.
If one wants to make $1million in day trading profits from those 250 days, it averages out to $4000 a day. $4000 profit on the $1millon put to risk works out to a mere 0.4% return each day on those 250 days.
That isn't possible, at least from my standpoint, because I think the world doesn't work that way. Still, I suppose it is possible, thanks to the internet and the digital way of putting money to risk.
That said, we, all 8 billion of us on this Big Blue Marble, can't be day traders. Somebody has to continue going to school instead of quitting in sixth grade to become a full= time day trader because, last time I checked, we may still have a need for brain surgeons, and school teachers, and trash collectors, not to ,mention farmers to grow the corn for the grits we eat with our bacon and eggs at breakfast.
Last time I checked, the corn that was milled into the grits didn't fall from the sky onto a supermarket shelf.
