June 9, 2021
The day trader on the beach
I was able to enjoy a few days at the beach last week as the kids finished up finals the Friday before. Weather was good, food was great, and we had a blast.
We usually hit the beach later in the afternoon to avoid the blistering sun. We also pack pretty lightly nowadays. Just a chair, a cooler and sunscreen. I don’t tan, I burn.
There was a family with younger kids next to us with 4 truckloads of beach stuff. I remember the days of taking young kids to the beach and it was a job! The dad walked by and we struck up a general conversation.
Within 2 minutes, he told me he was a day trader, how much his house was worth and how much “stuff” he has. He was proud. He told me he “makes a killing” day trading because he is very good at predicting things.
I asked him few questions and the answers were a bit shady. He told me of some company with a coronavirus vaccine that is “about to pop.” Seriously? He may be a year late on that one. Personally, I think the guy was full of it, but he loved to hear himself talk.
About 20 minutes later, a storm popped up, and we watched from under our friends tent as his family got soaked during the 5 minute rainstorm. When it was over, his kids were crying, his wife was ticked at him and he said to me…”I didn’t see that coming, did you?”
I laughed inside at the thought of a guy who says he can predict the stock market. but wasn’t prepared for an afternoon rainstorm at the beach. Maybe he wasn’t savvy enough to look at the app on his phone that tells you it’s probably going to rain.
And to think, someone out there is trusting this guy with their life savings!
Most of you know my stance on day trading and high risk individual stocks. It’s just not something I think is appropriate for my clients, who are either retired or almost retired. The last thing I want you doing is wondering if what someone says on Saturday Night Live will have a devastating impact on your portfolio. (Remember Elon Musk mentioned cryptocurrencies on SNL a few weeks ago and it directly impacted the stock prices).
We’ll continue to build portfolios that are boring, but work over the long term.
Enjoy your next vacation and don’t listen to people who say they can predict the stock market!
Thanks for the trust you’ve placed in our firm.