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I certainly am not a promoter of government solutions to any problem.
Governement's track record in this regard speaks for itself. On the other
hand, these daytrading firms, at least implicitly, most definitely promote
unrealistic expectations and strive by every means possible to keep fish on
the hook as long as possible.
It's a tough call as to who deserves one another the most, the daydreamers
or the promoters. They deserve one another. I call it a wash.
The good news is that if there is some kind of market crash at this time
there is a reasonable chance these firms will get the heat instead of the
futures traders.
Regards
Tom Alexander
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> From: BobsKC <bobskc@xxxxxxxxxxxx>
> To: ted stampeen <tedco@xxxxxxxxxxxxxxxx>; realtraders@xxxxxxxxxxxx
> Subject: Re: Day Trading Report
> Date: Wednesday, August 11, 1999 9:14 PM
>
> 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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