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I guess what Neal sais might be true if all daytraders (or at least the ones
he's worried about) bought in the morning and held all day - then they'd
effectively be long-term longs with no appetite for overnight risk, and that
would gradually drive up prices, ceteris parabus.
Rus
-----Original Message-----
From: tosk <tosk@xxxxxxx>
To: Omega List <omega-list@xxxxxxxxxx>
Date: 11 February 1999 07:58
Subject: Re: "day-trading is dangerous"
>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.
>
>**************
>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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