Comparison: Freedom vs Day Trading
WHAT IS DAY TRADING AND WHO DOES IT?
In this article, we will explore what exactly day trading is, who it is and isn’t suitable for, as well as considering alternative or lower-risk options.
Lately there has been a lot of talk around day trading because of its potential to earn a lot of money. While day trading has become a popular form of trading in the past few years because of its potential to make big financial gains.
It is also inherently volatile and can lead to huge losses for both experienced and novice traders.
The day trading platforms themselves warn people that more than 60% of first-time users will lose their money.
Source – Best Trading Platforms Australia 2022 Reviewed
Source – Best Online Trading Brokers in Australia – Online Trading List
Most people that trade do so sloppily. Where the line begins to cross between sloppy investing and outright gambling is the frequency of the violations of the questions mentioned throughout this article.
You have to be honest with yourself. If you are day trading and violate any of the questions listed above, you will fail at trading. I know that sounds harsh, but it is the grim reality of the market. She has a crazy way of separating people from their money when they act erratically.
IS DAY TRADING LEGAL?
Day Trading is legal in Australia, however like all forms of investing it is important that any trading is carried out through an authorised broker and regulated by the Australian Securities and Investments Commission.
Just because day trading is legal however, that does not mean it isn’t extremely risky.
Strong Mindset/Psychology
An effective mental framework is the glue that brings everything together. It’s what allows you to think from a probabilistic perspective and execute on your edge (the criteria/triggers/rules that make up your system/methodology) with consistency and discipline.
In my personal opinion, this is the main reason why the vast majority of traders end up quitting/failing (over 90%). Typically, new traders are so caught up in trying to find holy-grail systems that they completely overlook their own attitudes and beliefs.
No matter who you are – long-term, sustainable trading success requires a paradigm shift. Instead of rejecting loss, risk, and uncertainty, you have to embrace them (with structure and discipline, of course) if you want the potential rewards they can provide.
ARE THERE ALTERNATIVES TO DAY TRADING?
To be successful at day trading you need to have an in-depth understanding of how markets work and the various strategies for profiting off them in the short term.
You will also need to have sufficient capital and a big tolerance for risk.
Day trading is not for everyone and is rarely advised for the average person.
Comparatively, it’s common to see people put 20-100% into individual trades – which is an eventual recipe for disaster. No matter how smart you think you are or how much conviction you have – there’s always the possibility that you can be wrong.
There are several alternatives to day trading that can provide sufficient returns with generally lower risk.
Traditional investing (long-term investing across a more traditional portfolio like stocks and mutual funds)
Swing trading, a cross between day trading and longer-term investing, where traders hold their positions for a few days to a few weeks.
Another alternative that is like day trading with potentially less risk is the model offered by Freedom Securities.
WHAT IS FREEDOM SECURITIES?
Freedom Securities has been operating since 1996 and is based on investing on the Thoroughbred Racing Industry (via the TAB).
Ok, let’s be clear about this. Yes, we invest on the outcome of races.
Investors have been studying the statistics of racing for about as long as racing has been formalised and regulated.
Drawing on our own historical statistics, a pattern emerged showing an above average of winners (85%) come from the top four favourites .
Therefore, making a good return on each most investments (R.O.I) possible.
Using the Freedom Securities process, you can decide:
How much you want to work (3 – 4 hours per day)
invest and earn.
You can also use it to supplement your current income or replace it entirely.
At a minimum, requiring 3-4 hours per day of your time to see results.
It should go without saying though the more time you put in the better the return.
Unlike day trading, which is stressful and requires a lot of time, Freedom Securities software is easy to use.
The Freedom Securities system is built to deliver consistent investment returns and daily cash flow. The software the business is centred around selects daily investing opportunities for you from the day’s races.
These system’s process (built round the knowledge that 85% of winners come from the top four favourites), provides solid guidance, so you can simply follow the system’s recommendations with confidence.
Races with hot favourites do not fit the model, which is based only on races showing a more open field.
You don’t need to know anything about horse racing, the software makes all the recommendations for you.
You simply select the next race, within a set time limit, then within a few seconds, a complete set of odds and returns appear on your computer.
If the numbers work for the computer model, the system will tell you to place your investment’s (bets).
The amount you can make depends on several factors,
the amount of your working capital in your business
your ability to follow the rules of the system.
For example, potential returns on a recommended minimum capital input can be:
- $10,000 capital for a $100 net return per race.
- $20,000 capital for a $200 net return per race
- $30,000 capital for a $300 net return per race.
We stress that these recommended capital inputs and net returns are purely estimates and do not represent a guarantee of profit ratio.
The best part is you can work from home (or anywhere!) while setting your own hours.
We’ve already helped many of our clients break into this industry and can do the same for you. Speak to us today to find out more.
CONCLUSION
While day trading has the potential to make you a lot of money, it is also extremely risky. You need to have in-depth knowledge of the markets and strategies for investing, along with significant time and capital.
You also must be prepared to lose it all.
There are alternative options to day trading that can offer good potential returns, the Freedom Securities platform being one of these.