The Game with Alex Hormozi Stop Day Trading [Do This Instead] | Ep 302
May 20, 2021
Discover why day trading might not be worth the risk as it often leads to financial loss. Personal anecdotes reveal costly mistakes, such as a $200k blunder. Emphasizing the advantages of long-term investing, the discussion highlights the benefits of minimal trading and the implications of capital gains taxes. Patience and stability are advocated for, with insights into the surprising effectiveness of passive investment strategies. Tune in for valuable lessons on making smarter financial decisions!
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Passive Investing Wins
- In a Fidelity study, the best-performing stock portfolios belonged to deceased and forgetful investors.
- This highlights the power of long-term, passive investing over frequent trading.
$200,000 Mistake
- Alex Hormozi recently lost $200,000 due to short-term trading.
- He admits that 97% of his wealth resides in stable, long-term investments.
Tax Disadvantage
- Day trading gains are taxed as regular income, negating the benefits of capital gains treatment.
- This makes it harder to outperform long-term holding.