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Day trading is the best way to provide for yourself. It can give you a job that you can do at home with no boss, no co-workers and no commute. And you get to make your own hours. That is how you create a space for yourself in this economy without working for a real company. But, one of the things you give up when you stop working for a real company is retirement benefits. And that is when you can turn to a Roth IRA.
The Roth IRA was originally introduced in 1997, as an alternative to the traditional IRA. Individual retirement accounts have been around for years. They came into being as company pensions began to be phased out. It used to be that you could put 30-40 years in at a respectable company like IBM or Xerox and be rewarded with annual income that could sustain your post-retirement lifestyle. No more. The changing global economy, the shifting demographics throughout America and the decline of manufacturing have all conspired to make lifelong jobs a thing of the past.
So your retirement is on your shoulders. The Roth IRA can be a great option for you because you can contribute after-tax dollars and then take out that money, under certain conditions, and not pay taxes on the withdrawal. That gives you tax free income in your retirement. Depending on what other income you have coming, that can make a real difference in the actual taxes you pay as an older person. A Roth IRA can be a safe, tax sheltered method to put your money away and watch it grow over a period of decades.
The Roth IRA lets you take advantage of the miracle of compound interest. Watching your nest egg grow can be a very satisfying experience. As long as you start early, investing your money wisely, you can make real money come alive over the years.
When you start day trading, you can take your extra profits and put that into a Roth IRA. When you leave the corporate world, you need to think about replacing the benefits that you take for granted at a real job. Health insurance, retirement plans, etc. You can make real, life-changing money as a day trader, but you want to be able to save the right amount of it in order to make real money as a retiree.
Day trading requires discipline, education and risk management. Once you figure out how to be a day trader, you can make real money. You can find stocks that are about to make real moves and bring yourself to trade them early. That will give you a chance to find stocks that are about to make 30-40% jumps in value and then you can sell high and bank the profits.
After you learn how to be a self-sustaining day trader, you want to make sure that you put sufficient funds away into a Roth IRA, so you will not be penniless in retirement. That is the smartest move you can make.