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How Money Is Made On Wall Street

January 11, 2011 by · Leave a Comment 

Money is no longer made on Wall Street in the way that it used to be. It used to be the case that individuals would buy and hold the investments that they wanted. They would assume that these investments would grow over time and would provide them with a great return by the time they are ready to retire. This does work sometimes, but there are many cases when short term trading is really were the money is made in today’s market. 

Short term trading has become popular because of the technology that is now available to traders. They want to profit in the near term with the news that is available today. There are plenty of traders who are able to make a lot of money by simply trading on the short term movements. They just have to make sure that they are able to beat out the other guy in terms of how quickly they are able to react to a piece of news. This is a little bit of an art and a little bit of a science.

Trading occurs at lightening speeds now, so the small investor is going to have trouble keeping up with the rest of the market. They are probably still in better shape to just try the buy and hold mentality. However, this is not to say that there are not some small money investors who are able to make money off of short term trading. It is best to try things out and figure out for yourself.

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