Day Trading for a Living

Day trading for a living? You should consider trading closed-end funds. They are boringly predictable, and one of the best ways to make money.

What is a Closed-End Fund

Unlike mutual funds, close-end funds hold a fixed number of shares, and are traded over the exchange like stocks. Closed-end funds are usually better investments than mutual funds due to inefficient market valuations; they tend to trade at discounts in relation to their true value, and thus make good investments. Of course, the converse can be true.

But what is important is that closed-end funds are usually inefficiently-priced. Mutual funds, however, tend to be more efficiently priced than closed-end funds and do not offer these opportunities for good discounts.

Benefits of Closed-End Funds

Here are more advantages of closed-end funds, as suggested by Deel:

Closed end funds statistically outperform mutual funds.
Closed end funds can be purchased for substantial discounts from their present value. In contrast, most mutual funds have hidden fees that can add up quickly.
For the purposes of day trading, closed-end funds also offer good liquidity. If you were to invest in a mutual fund, you would not be able to get out until the end of the day. In contrast, you are able to trade a closed-end fund intraday, thus offering a better way to manage risk.
Closed-end funds can also be sold short. This presents you with opportunities to hedge your positions in various ways.