Stag
Categories: Trading
When we go somewhere stag, it means we go there alone. When we go to a stag party, it means we’re going to a bachelor party. When we go somewhere on a stag, it means we ride there on a male deer. (That’s definitely one way to make an entrance, right?)
In the financial world, the term “stag” has nothing with bachelor parties, deer, or our forever aloneness. Nope, in the financial world, a “stag” is a day-trader.
Basically, stags spend their days making quick trades (and hopefully quick profits) depending on how the market is moving. They’re usually not emotionally invested in their trades; they’re just trying to capitalize on small price changes hither and thither, because a bunch of small price changes could add up to big financial payoffs. And while this might sound like a lot of fun to the casual investor, beware: being a stag is not for the faint of heart. It requires a lot of attention to detail...a lot of time spent looking at prices, models, indicators, expert research, etc., and a lot of liquidity to get—and keep—a successful day-trading career going. Also, since stags tend to work solo, there’s no health insurance, sick days, or employer-matched 401(k) going on.
It can actually be a really risky way to make a living. But for those who have an eye for trading, and who can keep themselves from getting hung up on the emotional side of buying and selling, those risks can be...lucrative.
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Finance: What is a Day Trade?2 Views
Finance, a la shmoop. What is a day trade? Ding-ding-ding-ding-ding, spin the wheel
roll the dice, craps, hit hit hit, damn twenty two I'm [Casino games being played]
out. Okay so day trading well a bit quieter than a Vegas casino blackjack
thingy there.. Yeah well this was how it felt when he bought Amazon at a thousand [Guy looking tired staring at a computer]
two hundred and sold at eighteen minutes later at a thousand two oh eight, woot
sorta eight bucks and profits in 18 minutes for doing a whole lot of this.. [Finger clicking a mouser over and over]
Well day trading is just that, trading stocks back and forth in a given day
hoping to make more than you do while driving for Uber or Lyft and knowing [Guy looking excited driving a car]
that you're one click away from Easy Street or the poorhouse. Well day trading [Old battered house with smashed windows]
is a relatively new thing before computers got cheap and fast and
everywhere. Commission's on trading stocks were really high like [Stock ticker showing prices]
prohibitively high like 40 bucks a trade or more high so you couldn't day trade. [Red cross over computer screen]
But with the advent of online trading traders can now buy more or less all the
trades they can eat for less than a hundred bucks a month and all that's [Guy handing over money to the computer and getting lots of stocks]
great if you can sustain wins again and again in the world of day trading and [Dollar signs coming off the guys computer]
even if you do win all those winnings are gonna be taxed at the very high
ordinary income rates so you'll be giving something closest to half of your [Pie chart showing taxation]
gains back to the government, and that's assuming you're a relatively rare winner
like most people lose at this. Lots of people got rich owning Amazon for twenty
five years same with Google and Facebook doing
nothing like no trading just owning. But very very very few people in history [Pots of gold at the end of the 25 year timeline]
ever got rich from day trading, oh except one yeah that guy he's the [Guy holding a huge sack of casino chips]
house...