I figured it would happen sooner or later. I met a day-trading taxi driver. In the 20-minute drive from the doctor’s office to my home, I basically got a rolling TED Talk on options trading, Fibonacci retracements and a mysterious expat living on a sailboat in Baja who apparently holds the keys to financial enlightenment.
The conversation began when I asked my Uber driver, Tammy (not her real name), what she was listening to on her radio. It was a podcast featuring momentum and volume trading signals. Her podcast mentor? A guy who apparently trades from a hammock on a catamaran with solar panels and a Starlink subscription.
As entertaining as Tammy’s tales were, they reminded me of a core financial planning truth: there is a big difference between investing and gambling with a narrative.
Day trading with options is speculation, not investing. Most people lose money at it. Real financial planning includes goals, time horizons, diversification and an actual investment plan.
I may never master Fibonacci arcs (in short, a system used to predict price patterns), but I do believe in another ancient pattern: if you spend less, save more and don’t do anything stupid, you can build wealth.
The overwhelming evidence strongly supports a buy-and-hold strategy using low-cost stock index funds as having a much better chance of building wealth over time compared to day trading with options. Time in the market (compound growth over decades) beats timing the market. In other words, consistent investing in diversified funds outperforms most active strategies. Studies show that 80–97% of retail traders lose money over time.
If you are building wealth for retirement, family legacy or financial independence, go with the boring, proven approach. The markets reward patience and discipline, not flashy trades, the advice of gurus or candlestick chart patterns.
Tammy was nice and, if nothing else, committed to her system. And she was not afraid to work, driving 50 to 60 hours per week, owning a home and renting out a room, and limiting her day trading to twice per day. I wished her luck and I stepped out of her car with a sense that she would be OK.
This article originally appeared in the Knoxville News Sentinel online on August 15, 2025.
