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Neal T. Weintraub wrote:
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.
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Can someone explain the logic behind the above statements? I would agree
with the comment about cannon fodder but to say that day traders are causing
the stock market bubble? (!) A day trader by definition gets in and out in
the same day - this should neither move the market up nor down on a
continuing basis but only provide liquidity. A bubble is caused by bulls
buying without regard to value (and obviously holding).
I know this guy thinks he's a guru or something but this just doesn't make
sense. Can someone provide a different interpretation?
Tom Lisk
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