As a passive income-ish, what is better to make some side money: day trading or waiting for a few dividends to hit your account?
Day trading is active. So dividends all the way.
Don’t day trade. Even most professionals lose eventually. Ignore what everyone claims. Avoid it like the plague.
How comfortable are you with betting your money? For this sub, most are gonna push you to the only passive option of dividends.
Corey said:
How comfortable are you with betting your money? For this sub, most are gonna push you to the only passive option of dividends.
I mean I don’t like losing money, but I can see taking some risks if it makes sense.
Corey said:
How comfortable are you with betting your money? For this sub, most are gonna push you to the only passive option of dividends.
For some reason, Reddit created a new account, but the comments above me are me.
What makes you think you’ll be one of the very few day traders who end up being profitable when even the so-called professionals have a hard time beating the index?
Cameron said:
What makes you think you’ll be one of the very few day traders who end up being profitable when even the so-called professionals have a hard time beating the index?
I don’t think I would be successful if I don’t do the proper research, obviously. I was just asking a simple question on which would be better to do as a side hustle for some extra cash.
@Taliesin
My point is, even the people who do the proper research and spend years mastering the craft usually don’t make a profit. It’s literally gambling unless you manage to find an edge—some information about the market that not a lot of people know. There’s professionals doing it as their day job with resources you and I could only dream of, and they’re not making a consistent profit. If someone is telling you they have a way for you to make profit, they’re lying. A real profitable trader will never tell you what their secret is, or they’d lose their edge.
“Only 13% of day traders maintain consistent profitability over six months, and a mere 1% succeed over five years. 72% of day traders ended the year with financial losses, according to FINRA.”
I’m not only telling you not to stay out of day trading, I’m telling you why, which is way more valuable.
Can someone go over the dividend/monthly income investment strategy? I’m curious to know if it’s feasible.
Cameron said:
Can someone go over the dividend/monthly income investment strategy? I’m curious to know if it’s feasible.
Basically buying stocks of companies that pay a dividend. I am heavily into this strategy on my taxable account. I learned most of my knowledge by watching Joseph Carlson and Arm Chair Income on YouTube. I make right around $800 a month from it. It could be much higher but I have my portfolio tailored to less risky SWAN stocks and ETFs.
It’s the only truly passive way to make income IMO, but you do have to work to put the money in the market! But once you get that first 20 cent dividend payment, you’ll get hooked.
@Cameron
I have a little under $150k in total invested. Well, that’s a good question, and the biggest fight you’ll see in r/dividends is about if it makes sense to be a dividend investor or not. One camp says just go pure growth and avoid any kind of NAV erosion. The other wants the income and is either comfortable with some erosion or doesn’t believe the erosion is occurring.
At the end of the day, both strategies are good, although traditionally you would go full growth during your early career and slowly transition that to dividend payers later in life. I wanted that income stream now, so I am 80% in dividends and 20% growth.
I recommend exploring it if it interests you! No matter what, you should be investing somewhere, even if that’s a 401k, IRA, or individual taxable account.