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Just read an excellent article at:
http://www.bloomberg.com/pfc/vo2_new99.html
"Trading Is Not Investing: The problem with day trading,
an expert on financial markets says, is that few people bother
to learn the rules~
A few quotes:
"Much Internet "trading" is performed by people who have a barber who's
plugged in to technology or a brother-in-law who lives near San Jose
and keeps a keen ear open at cocktail parties. Buying stocks on the
basis of tips or comments in chat rooms is like betting on the advice
of touts at the racetracks: It's not a business, and over time it's not
going to be profitable. Even for people who know what they're doing,
cyberstreets are not paved with gold. The vigorish is still with the
house, and the electronic customer, like his ancestor who hung around
at the broker's office, still buys at the asked and sells at the bid.
But in actively traded stocks the spread may be as little as a
sixteenth of a point, or six and one quarter cents a share, a
manageable handicap."
...
"But those outside crutches, those reasons, are there only to prevent
aimless activity. Like every trader, DiFrancesca agreed with the notion
that good traders have to take their losses, quickly, and cannot ask
Divine Providence to bail them out: ``The people who survive at the
Board of Trade have a low puke point....God doesn't trade bonds....He
doesn't care what kind of trouble you're in; He doesn't trade bonds.
You want to throw those future contracts up all over your
shoes....There has to be a feeling inside of you that won't let you
stay with something too long.''"
--
| Gary Funck, Intrepid Technology, gary@xxxxxxxxxxxx, (650) 964-8135
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