Is trading for retirees?
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Many retirees are attracted to the financial markets and trading.Some see it as an occupation, but the majority see it as a matter of finding a supplement to their pension. Is it a good idea to trade when you're retired?
Two factors enter into account in determining an investor's objectives:
- Age :Before the age of 35, a person generally seeks to build up capital and is therefore willing to take certain risks to do so.Between the ages of 35 and 60, people generally try to grow their capital.This is the age group where people are willing to take the most risk.At retirement age, the objective is to protect your capital and you are therefore less likely to take risks.
- Time available: The more time a person has available, the more active they can be in financial markets and trading.That's why many unemployed and retired people start trading.
For the retiree, these two factors are in contradiction. Indeed, with age, people generally become more and more cautious and try to protect their capital but retirement gives them a lot of free time which they then have to occupy. Many retirees therefore choose trading.However, if there is a moment in your life when you can't afford to lose your capital, it's when you are retired. During this period, income is declining and it is difficult to replenish capital.
If so many pensioners are attracted to trading, it is obviously in order to supplement their retirement.So the objective is to try to gain additional income from trading. The problem is that to be a good trader and hope to earn money takes several years. Having a good technical background is not enough in trading, you must also learn to manage your emotions (a winning trader is a trader who no longer feels anything when he trades), and gain experience.You can't learn experience, it simply requires time.
Trader training also has a significant cost.In addition to the cost of paid training (see Paid trading training: educational utopia), you should take into account the cost linked to learning to trade.A trader who tells you that he never razed a trading account is a liar. Unfortunately, to make progress, mistakes must be made.In trading, these errors have a financial cost.
In the financial markets, the golden rule is to only invest money that you can afford to lose, it must not affect your present or future standard of living.Pensioners with a small pension are not in this category.Going into trading is therefore pure folly, in my opinion.It is highly likely to lead to failure, a failure that could have serious psychological and financial consequences.
The only retirees who may be able to afford to trade are those who have already practised before retirement and who have the financial means to incur a dry loss on their capital. For the others, it would be better to bypass this course of action.They have nothing to gain and everything to lose!
Retirees are highly valued by trading instructors and brokers. Indeed, they generally have more capital (a lifetime's work).Everything is done to make them want to trade.A lot of trading shows are organized throughout the year and they work well.If you have been to a trade show before, you will find that the vast majority of visitors are retired.If you've never been interested in trading before, going to a fair just out of curiosity could prove too tempting.Everything is done to make you take a leap and make you want to trade (trading duels, conferences, brokers, etc.).
There are also a lot of training courses on the internet. In most cases, these training courses are there to make you believe that trading is easy, that anyone can do it, and especially that you can do it quickly.It is better not to fall into the trap.Once you have had one training course, you will want to do another one and the only one who will get rich is the trainer.I am not saying that all training is bad, but it is often very expensive.Before registering for one of them, think carefully about one point: will you be able to make your investment profitable? Because yes, training is an investment, the cost of money but with the aim of earning some later.If you pay €1,000 for training, that's as much money as you'll have to earn in your trading to draw even.If you make 10% a year in your trading, you can be happy with yourself.Don't expect to double your capital.
The last trap for retirees comes from the brokers. Many crooked brokers buy databases to get phone numbers and email addresses.Playing into the other person's game could get you hooked.I would be better to hang up before he's even had a chance to tell you his story.They are very good at convincing people, they promise the earth.Their formula is to offer you an in-house trader who will trade for you.It's a very common scam.You are then asked to deposit a lot of money so that the person in question can take care of your account and as soon as you feel the scam coming, they raze your account.Consider some simple guidelines:When trading, it might be better to manage your own money!Trusting management to a third party could be dangerous!
If you're retired succumbing to the sirens of trading is a risk.You may have much more to lose than to gain. Retirement is possibly not the right time to start trading. Unless you have been trading for several years it is more cautious to do something else to keep yourself busy.
A contradictory investor profile
Two factors enter into account in determining an investor's objectives:
- Age :Before the age of 35, a person generally seeks to build up capital and is therefore willing to take certain risks to do so.Between the ages of 35 and 60, people generally try to grow their capital.This is the age group where people are willing to take the most risk.At retirement age, the objective is to protect your capital and you are therefore less likely to take risks.
- Time available: The more time a person has available, the more active they can be in financial markets and trading.That's why many unemployed and retired people start trading.
For the retiree, these two factors are in contradiction. Indeed, with age, people generally become more and more cautious and try to protect their capital but retirement gives them a lot of free time which they then have to occupy. Many retirees therefore choose trading.However, if there is a moment in your life when you can't afford to lose your capital, it's when you are retired. During this period, income is declining and it is difficult to replenish capital.
Trading has a cost
If so many pensioners are attracted to trading, it is obviously in order to supplement their retirement.So the objective is to try to gain additional income from trading. The problem is that to be a good trader and hope to earn money takes several years. Having a good technical background is not enough in trading, you must also learn to manage your emotions (a winning trader is a trader who no longer feels anything when he trades), and gain experience.You can't learn experience, it simply requires time.
Trader training also has a significant cost.In addition to the cost of paid training (see Paid trading training: educational utopia), you should take into account the cost linked to learning to trade.A trader who tells you that he never razed a trading account is a liar. Unfortunately, to make progress, mistakes must be made.In trading, these errors have a financial cost.
In the financial markets, the golden rule is to only invest money that you can afford to lose, it must not affect your present or future standard of living.Pensioners with a small pension are not in this category.Going into trading is therefore pure folly, in my opinion.It is highly likely to lead to failure, a failure that could have serious psychological and financial consequences.
The only retirees who may be able to afford to trade are those who have already practised before retirement and who have the financial means to incur a dry loss on their capital. For the others, it would be better to bypass this course of action.They have nothing to gain and everything to lose!
There are many traps
Retirees are highly valued by trading instructors and brokers. Indeed, they generally have more capital (a lifetime's work).Everything is done to make them want to trade.A lot of trading shows are organized throughout the year and they work well.If you have been to a trade show before, you will find that the vast majority of visitors are retired.If you've never been interested in trading before, going to a fair just out of curiosity could prove too tempting.Everything is done to make you take a leap and make you want to trade (trading duels, conferences, brokers, etc.).
There are also a lot of training courses on the internet. In most cases, these training courses are there to make you believe that trading is easy, that anyone can do it, and especially that you can do it quickly.It is better not to fall into the trap.Once you have had one training course, you will want to do another one and the only one who will get rich is the trainer.I am not saying that all training is bad, but it is often very expensive.Before registering for one of them, think carefully about one point: will you be able to make your investment profitable? Because yes, training is an investment, the cost of money but with the aim of earning some later.If you pay €1,000 for training, that's as much money as you'll have to earn in your trading to draw even.If you make 10% a year in your trading, you can be happy with yourself.Don't expect to double your capital.
The last trap for retirees comes from the brokers. Many crooked brokers buy databases to get phone numbers and email addresses.Playing into the other person's game could get you hooked.I would be better to hang up before he's even had a chance to tell you his story.They are very good at convincing people, they promise the earth.Their formula is to offer you an in-house trader who will trade for you.It's a very common scam.You are then asked to deposit a lot of money so that the person in question can take care of your account and as soon as you feel the scam coming, they raze your account.Consider some simple guidelines:When trading, it might be better to manage your own money!Trusting management to a third party could be dangerous!
Conclusion
If you're retired succumbing to the sirens of trading is a risk.You may have much more to lose than to gain. Retirement is possibly not the right time to start trading. Unless you have been trading for several years it is more cautious to do something else to keep yourself busy.
