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Yes, we need the daytraders!! Come one, come all!! The more the better. Hehehe
A Position Trader
Patrick White wrote:
> There is danger of falling out of bed in the morning.
> There is danger in extracting your toast from the toaster.
> There is danger in commuting in rush hour traffic.
> There is danger in drinking alcohol.
> There is danger in smoking cigarettes.
> There is danger in trusting a mutual fund with your money.
> There is danger in relying upon the TV pundits.
> There is danger in crossing the street.
> There is danger in operating an electric appliance.
> There is danger in carrying scissors the wrong way.
> There is danger in walking on an icy sidewalk.
> There is danger in relying on a piece of software to execute your system
> correctly.
>
> In short, we're all adults and can do without governmental supervision if we
> choose to day trade.
>
> Do day-traders damage the market mechanisms?
> No, they add liquidity.
>
> Do day-traders hurt "investors" with a long-term view?
> No, day-traders make it possible for longer term investors to exit their
> positions at will.
>
> Do day-traders manipulate the market?
> No, the vast majority of day-traders don't act in concert with one another.
> If they did, they still lack the necessary capital to move the market in any
> significant way. Look to the large institutions who run buy and sell
> programs to account for this type of price manipulation. Program trading
> hurts small investors, not day-trading.
>
> Do day-traders hurt others when they win or lose in the market?
> No, individuals who day-trade are participating in the market in a
> legitimate manner - for the purpose of speculation. Hedging and raising
> capital are the other reasons for an organized market to exist, but these
> two purposes would be much less efficient if day traders were not allowed to
> add liquidity to the market.
>
> Patrick White
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