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At 11:51 PM 8/11/99 +0200, ted stampeen wrote:
>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
Ahh.. but! Traders and trading rooms don't pay a nice fat tax to the
states they operate in like casinos do and after all, gambling is rapidly
becoming the business of choice for government. (State lotteries,
casinsos, river boats, sporting events, etc.). Now.. if we just pay 20%
every trade we make to the Feds, you'll be amazed at how understanding
they'll become of our profession. :)) (I note that I am responding to a
member in France but I'm sure he too, will see my point). :)
Bob
>----- 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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