What is with this pure and persistent myth about the young trader demographic? The article features two people in their 20s and one in their early 30s.
I resemble that remark. Thirty-four years old, chemical engineer. I'd have to agree with Keith, though, good luck taking money from this 'kiddie'!!!
I suppose the young traders may have an advantage getting into daytrading, in that they typically do not have a long career to lose. Many daytraders that start right out of college have little to lose, career-wise. However, it can be very dangerous for the inheritance or loan that they borrowed to get started.
The older folks are much more likely to be trading with their own capital, which may make them more comfortable with the risks of trading. They are also more likely to be better capitalized.
Imagine two rookie traders:
One is 21 years old, just out of college. He borrowed $50,000 from his parents to get started and has no other income. He 'needs' to make money to pay for his living expenses.
The second trader is 50 years old and retired early from a successful professional career. He has experience investing his own money from the past 25 years and has opened up a 'small' account of $100k to start conservatively daytrading (contradiction in terms?). In addition to his trading account, he has longer term investments totaling $1M+ and has a nice retirement income for his day-to-day living expenses.
Who is more likely to be successful? I'll bet on the 'old' guy every time. I envy the old guy. As a matter of fact, I am getting older and older every day! Try not to abuse us youngsters too much, though, we can't help it!
-Eric |
