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When am trading my stocks. When I was buying and saw that the sellers
are smaller
guys, I now it there's a high probability it will still be going up
higher and when I am selling and the buyers are mostly small lots, I
know will be having a hard time getting out. Scares the heck out of me,
especially when am loaded to the gills in position. Know gotta do more
working and massaging to get the position out.
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From: "Neal T. Weintraub" <ntw@xxxxxxxxxxx>
To: <felixty@xxxxxxxxxxx>
Subject: Re: "day-trading is dangerous"
Date: Wed, 10 Feb 1999 08:23:07 -0800
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Day traders provide the cannon fodder. They do not provide liquidity. They
are a new breed of bubble blowers...they provide the stock market
bubble...they did the same thing in Holland with Tulip Mania.
-----Original Message-----
From: felixty@xxxxxxxxxxx <felixty@xxxxxxxxxxx>
To: Omega <omega-list@xxxxxxxxxx>
Date: Tuesday, February 09, 1999 8:21 PM
Subject: Re: "day-trading is dangerous"
>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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