Why Traders Become Investors

There is no such thing as easy and fast money.

Hedge fund legends are making billions! Day traders are telling you to get lambos and lobster you need to be a master at markets. Trading stocks, crypto, anything from soybeans to crude oil, people everywhere seem to think that this is the way to quick riches in markets. And many will try it.

But, trading is really hard. There are scammers out there who want your money. There are machines and trading firms who do this for a living. Trying to outperform the market is really f’ing hard.

When you’re young and ignorant, though, you don’t think like that. You think you can beat anyone at any task you try. That even means the biggest funds.

I spend a lot of time on the Internet talking with traders and investors from all backgrounds. I’m most fascinated by the rookies. The new kids. The ones who are trying to figure it out because they saw an Instagram ad saying something like, “if you trade like this, you can be rich like me!” or a self-proclaimed market guru convincing people that, “this strategy will change the world, get in now!” Anyone promising big monthly returns or a stock that’s guaranteed to pop is an immediate red flag. Nothing is that easy and no one gives their money away for free. Generally, there’s something else going on.

I remember hanging out with a good friend when I was living in Washington DC. He’s still one of the smartest people I know working as a consultant for one…