Will the profits from trading keep up with inflation ?

T

traderwald

Hi guys,

Do you think the profits from trading keep up with inflation ? For example if you can earn $6000-$8000 today which is Ok for existing costs, if the same expenses are $15000 in some due to inflation, will trading keep up with it ?

Considering the fact that online trading has only become prevalent in 2 decades or so, is this a factor to consider

Thank you
 
etrades said:
Hi guys,

Do you think the profits from trading keep up with inflation ? For example if you can earn $6000-$8000 today which is Ok for existing costs, if the same expenses are $15000 in some due to inflation, will trading keep up with it ?

Considering the fact that online trading has only become prevalent in 2 decades or so, is this a factor to consider

Thank you
More...

If you are talking in terms of USD, um, yeah, profits from trading will "keep up with inflation".
 
Yes, the profits will keep up with inflation. One of the big advantages of trading is the ability to increase the size of your business with a keystroke, just add zero's. No customers, no advertising, no annoying employees, just zero's. So, if you own more dollars because they are worth less, you can add zero's to the number of shares you are buying or selling.
 
newwurldmn said:
Not after tax.
More...

Depends on one's tax bracket. If you're retired and have no other income than capital gains, one could in theory put all their money in a 10 year treasury, collect the 2.67% yield until maturity and pay no taxes until they exceed their deductions...which off the top of my head, isn't the standard deduction for married couples $24,000? So does that mean no taxes on roughly the first $1,000,000 invested which would yield around $26,700 per year in interest for that couple? Maybe that only applies to earned income...not sure.
 
As 97-99% of people lose money over all, I’d say NO!!!


Ofcourse the question you should ask in, could you out trade inflation, which ofcourse the answer us yes, will you remains to be seen.
 
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