Have you ever wondered, why would anyone choose to risk their hard-earned money, set the emotions of a roller coaster and adopt a teaching career that is day trading instead of choosing a Commerce stadia path that is long-term investing? Well, let me tell you something personal about myself. Even though a green Lamborghini is very tempting, my heart will always yearn for something more valuable, like praying for Tesla to go to the Moon welcome back to another humble Trader video my name is Shea AKA tumble Trader Over my eight years of trading, I've had many friends and family members came to me and asked why I worked so hard just to gamble my money away when I could go the safer route and invest in a diversified Index Fund Whether you are currently trading part-time or full-time I'm sure you're being asked a similar question in your life as well. Day trading generally gets a bad rep and not everyone understands why we choose this career path. Well, the truth is maybe I don't want to waste a whole year to make a thousand dollars on dividends or capital gains I want to make that in five minutes and maybe just maybe I want to also lose it all in five minutes? What? I'm just kidding, but am I though in this video I'm gonna be sharing with you Why: I Personally choose to day trade full time, the advantages of day trading over investing, Why you shouldn't be a day trader, and why investing could be the better choice for you, especially when it comes to dealing with taxes.

Hopefully by the end of this video, you can learn from my experience and decide for yourself whether you should spend your money on day trading or investing. Or perhaps you can smash a like button for free. Why? I Choose to day trade full time. Full disclosure: Currently I do both day trading and investing but I didn't always have enough Capital to invest in until after I started profiting from day trading.

If you've been following my channel for a long time, you know that I started learning to day trade because I was miserable at my nine to seven job in film and VFX us a VFX artist I was very unhappy working my job, the long hours, the dark work environments, and the negative and sometimes even hostile culture in an industry where all the factors making me want to quit even though I slowly worked on my salary over time from starting at fifty thousand dollars a year to a hundred thousand dollars VFX Industry contracts were never consistent and there will be many months in between where I would have zero income and that's the reason I Started to learn day trading on the side and was my part-time hustle starting in my early 20s. I Saw a lot of potential in this fast-paced world of stocks and momentum. I Started trading as a way to accelerate my earning potential. It was almost like a game.

I Wake up every single day just to try to beat the market and make it to the next level and let's be real. Maybe I Also have a little bit of Djin in me I'm sure you probably have felt the same way too. am I right or am I very right I mean I'm definitely not known for taking the most conservative traits, even though I've gotten a lot better over the years. I Swear.

just ask my ex-husband my bag holder when kick him out. The advantages of day trading over investing investing is something that everyone should be doing even day. Traders The problem is though, with a ten thousand dollars investment in the S P 500 at best, your investment can generate a thousand to two thousand dollars a year and a 10 to 20 average, and that's extremely optimistic. In 2019 through 2021, the index was up a whopping 24 on average, But there are some gears when the index is down as well.

Such was the case in 2022 where everything was down 19.4 percent. Investing like this is great passively if you have a full-time job. But if you want a new site, hustle, a job change or career change. investing with ten thousand dollars doesn't exactly pay the bills and that's the first.

Advantage day trading has over investing once you learn the skill. Still, it can potentially supplement your income and pay your bills throughout my day trading. Journey What started out as a side hustle, eventually was able to pay for half of my expensive rent in Los Angeles then all of my bills, then my student loans, and then slowly but surely my mortgage. day trading has since then gone from a side hustle to a forearm business.

And that's something. I Cannot say for investing with day trading. Once you are over the initial learning curve, your earning potential isn't capped by the number of hours you can work or the average returns of an index. Now let me make this very clear though: the day trading and learning curve was very steep steeper than the inflation curve since 2019.

in fact, I lost thousands of dollars trading recklessly in my first year and well into my second year. You could say that my return was negative 100. That's definitely worse than the S P 500 Benchmark and lost 100 of that ten thousand dollars. But I kept on refunding my trading account two thousand dollars.

Three thousand dollars at a time and that's the capital that's since then grown exponentially in the middle of year two. I finally started to see some consistency in my trading and went red to Green I've sensed them more than Made Back by ten thousand dollars less and trading has taken me to see profit potentials that never thought was humanly possible. with investing. though, unless you're starting out with a hundred thousand dollars or more, it's very difficult to make twenty thousand dollars a year.

And in this economy, twenty thousand dollars isn't even enough to live on. But hold on before I Go on anything further. I Don't want you to think that I'm treating day trading us a get rich quick scheme. No, it's not and I'll explain that later on in the video.

But if you do want to get rich quick, the easiest and the fastest way to do so with minimal effort is to smash the like button. Just kidding. please don't sue me. But it is true that with a realistic time Horizon and hard work, it's very possible to make day trading your full-time career.

And this is the second reason. I Choose day trading over investing and that is Financial Freedom Learning to day trade has helped me reach Financial Independence I No longer need to worry about whether my previous job decides to extend my contract or whether my boss will grant me a two thousand dollars raise. When your day trading full-time your earning potential is no longer tied to the number of hours you clock in. It's all about your ability to spot and seize Market opportunities.

It's a game of skills, risk management, and strategies. Since 2016, with the money I made from day trading, I've been able to diversify my investments, max out my RSP and TFS accounts that's the Canadian version of the Roth and traditional 401K accounts like you have in the states and I've also been able to diversify my investments in other asset classes like real estate. Now when you think about Financial Freedom from Trading you often think about mentions private jets and a driveway full of Lamborghinis But to be honest, those flashy things don't really bring me happiness or fulfillment I Much prefer to drive my Corolla This is no joke. My family's 20 year old Corolla is parked downstairs right now I Recently changed the brakes so it's as good as new.

What does bring me a lot of joy is being able to support the ones I Love like my immigrant parents and contribute to causes and passionate about. That's the true beauty of financial. Independence For me, it's not about accumulating material stuff, it's about making a positive impact and giving back, being able to give back to a community to help others and being able to tell some bad jokes at the same time. This feeling is priceless.

It's something that money cannot buy. So far, I've only mentioned positive things and all the ways day trading is better than investing in my opinion. However, I'm not named The Humble Trader for no reason I Gotta keep it real with you guys despite all the advantages. I Just mentioned, not everyone should day treat.

only pursue day trading if you can allocate at least six months to a year minimum to study in this very active skill and only do so if you can take it seriously and see it as an investment in yourself. The reason I say it's an investment in yourself is because well when you first start you are going to lose money and I did as well. Like I said earlier, you have to be okay with losing this money and viewing it as Market Tuition when I first started trading I certainly blew up my first few two thousand five thousand dollars account and like I said I had negative 100 to return. So if you're not willing to risk that, then day trading probably isn't for you.

Day trading is not a style of investing, it's a form of active income. It's a business and it requires a lot of work. You need to take the time to learn the skill for a minimum of six months to a year and sometimes like myself, even two years in order to do this. Yes, it can certainly start as a part-time side hustle like it was for me.

You just need to put in two hours a day 10 hours a week minimum into learning this, and it's a skill that can grow exponentially and pay dividends for your future. But if you just need some garbage quick cash in the next two or three months, then day trading isn't for you. After hearing about all of these warnings, if you are still interested in getting started with day trading or if you're looking to improve your learning I have a free video playlist down below that you can watch and help you get started. The advantage is investing has over day trading.

I Know at this point in the video you probably already know that I'm personally more pro day trading. However, there are definitely two main reasons why investing might be the better choice for you. The first reason is investing is so much less stressful and can still generate long-term passive wealth. I Want to emphasize that it is okay.

If you don't want to put in the time, efforts, or money into learning to day trade, it's perfectly fine. If trading isn't your thing, there are still other ways to grow your wealth and be part of the financial markets. Without the Daily Grind and stress of trading, that's the reason you should still invest. In my opinion, everyone should invest whether you are earning a full-time job, part-time job, or your day trading full time.

When you are investing for the long term, you might check your portfolio maybe once a month or even once every six months like I do. It's a hints off patient approach that can grow slowly over time. Unlike my marriage with my ex-husband you should be Investing For the Long Haul And let's not forget the bonus. you are saving yourself the emotional roller coaster with investing.

I Mean not everyone wants that additional stress as a day trader, right? Trading is not just a job, it can be an emotional Battlefield Even though I'm a day trader I Definitely still invest on the side I Invest the money and leave it. forget about it for the next couple of months. I Do not even look at them from day to day like I do when I'm day trading stocks a lot of millionaire day Traders are interviewed in my past videos invest their day trading profits into the stock market, real estate, and many other businesses. but without day trading to generate a capital to invest with, they wouldn't be where they are today.

Taxes are always more favorable for investing versus day trading. Perhaps the biggest reason investing is better than day trading is because of all the tax savings you could get whether you are in the United States or Canada. It's true that long-term investing is almost always taxed more favorably than short-term Trading Since trading is a career and an active income, it's taxed as a business. in both countries where I live in Canada the income from Trading is taxed at a full marginal tax rate.

invest in profits though it's taxed way more favorably in Canada it's considered capital gains and your tax only 50 percent of the profits from investing. whereas in day trading you're gonna be taxed a hundred percent on all the profits and you're gonna see something similar in the United States as well. Let's say you have thirty five thousand dollars in initial Capital Would you rather have made thirty five hundred dollars passive income from investing and only get taxed 50 percent? Or would you rather have made sixty to seventy thousand dollars from Trading and have to pay tax on all of them. decisions, decisions.

That's probably a tough question. I Know it's not fair to compare apples to oranges. Remember, there's no one-size-fits all in the financial markets. Each of us has a unique path, a personal preference.

and that's why the choice of day trading or investing is completely up to you. I'm simply sharing the reasons why I gravitate more towards stage trading as an active business and I still invest passively on the site. But remember, it was day trading that empowered me with the initial Capital to start investing I Hope this video sheds some light for you if you're comparing day trading and investing and if you have any questions regarding one or the other, you can ask me down below. If you are interested in learning more day trading strategies, then check out this video I have for you for the best day trading strategies for beginners.