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this report is a bunch of B.S.
I see they analyzed the trades, but what about the traders themselves
did they have the big 3 ingredients, time, knowledge, money, though I guess
they had money, but without the other 2, kiss it goodbye
and what bout the casinos, they have taken more cash from the begger to
the rich, and there ain't no other way to dress up what they are doing
well I`ll stop at that
goodtrading/ TED
----- Original Message -----
From: G. Dunn <gjbkdunn@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxx>
Sent: mercredi, 11. août 1999 21:06
Subject: Gen: Day Trading Report
> Just got thru watching on CSPAN a National Press Club breifing by
> regulators who did a study of Day Trading firms.
>
> Notes I took were as follows: The "Industry" reports that there are about
> 5000 daytraders total and they create 15% of the daily NASD volume.
>
> The regulators did a statistical study of individual account records from
> one firm in Massachusetts and extrapolated the results.
>
> They found:
>
> The Cost/Equity ratio was 56%. That was defined to be the annual return
> you have to make daytrading in order to pay for your Commissions and
margin
> fees.
>
> 11.5% of the accounts were profitable short term. i.e. 88.5% were not
> profitable.
>
> 70% of trading accouts lost money and their risk or ruin was 100%
>
> The study found daytraders cut profits short and let losses run.
>
> After the report was given one question from the press basically asked
> "what about the argument that you need to daytrade for 6 months in order
to
> learn and get good at it. Does this study take into account the
experience
> of the day traders." The guy who did the study responded that based on
> his analysis of the data (records of the firm studied) the vast majority
of
> daytraders have lost all their money within the first 6 months.
>
> Don't know if this study will be published someplace online.
>
> Food for thought.....
>
>
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