Buy and hold investing in index funds has two dramatic benefits over the chaotic speculation of trading.

1. It’s way easier.
2. It makes way more money.

It’s tempting to think that deep dive research, seven screens of colorful charts, advanced systems, and hours of focused attention would give you an edge on beating the stock market. But it doesn’t. It’s just a lot of effort that results in lower average returns.

What day trading DOES do is introduce more randomness. Over short periods, randomness can appear like success. If you’re flipping a coin and focus REALLY hard on getting a heads, then you do, it’s natural to think your effort is paying off. Same with day trading. You do all your research, trade a few stocks, and if you come up with a win, it’s natural to draw a cause and effect conclusion.

But that’s not it. It’s just random. Keep flipping, you’ll get some tails. Keep trading, you’ll get some losers. And over time, the costs and inefficiencies associated with day tradnig will leave you behind where the buy and hold investors are.

So be like Yusuf Dikec. Throw on a t-shirt, pull up Fidelity, Vanguard, or Schwab, set up some auto investments into some index funds with one hand in your pocket and call it a day.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy