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The media, as usual, is just following the latest perception and as a
result of the lunatic who killed several people here in Atlanta, daytrading
is now risky business. It's been risky business all along but the wind has
changed direction and the media with it. It is sheer coincidence that they
have it right.
While buy and hold may not work forever, one has to admit when it comes to
US equities and a reasonably diverse portfolio it always has - so far.
The "time in the market as risk" argument misses the point when discussing
the risks of daytrading. That's an argument usually held out by the market
timers vs. the pure buy 'em and hold 'em Warren Buffett types.
Daytrading, whether one is talking about scalping stocks for an eigth or
spoo's for a handle is a very different ballgame. It takes a unique set of
personality traits, skills, and experience to be successful. Many are
called and very, very few are chosen. It is similar to the lottery; someone
is going to win it, odds are overwhelming against it being you ("you" being
any given person).
Regards,
Tom Alexander
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> From: Zaheer Bhyat <Zaheer@xxxxxxxxx>
> To: RealTraders Discussion Group (E-mail) <realtraders@xxxxxxxxxxxx>
> Subject: GEN: Stop me before I day Trade again!
> Date: Monday, October 04, 1999 3:12 AM
>
> Hi all,
>
> An interesting thread from Salon.com...
>
> I'm just wondering what the deal is with all the vilification in the
mass
> media wrt day-trading. . .all that incessant chatter about the risks.
What's
> the risk of not being in the market very long? It would seem the risk is
> proportional to the length of time in the market. I mean, how much can
> stocks change in a few minutes or hours, as compared to weeks, quarter,
or
> years? Is the officially prescribed slant of Wall Street in favor of
> buy-and-hold-forever anything other than self-serving? Isn't it Big Money
> which is really responsible for the gazillions of shares traded every day
> and all the volatility?
>
>
>
> Zaheer Bhyat
> zaheer@xxxxxxxxx
> +27-21-680-5802
> ______________________________________________________________
> "Men occasionally stumble over the truth, but most of them pick
themselves
> up and hurry off as if nothing ever happened." - Winston Churchill
>
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