Ira-
My brother had an issue with me daytrading the stock of the company he worked for. He said that stock should be bought and held long term, and daytrading hurt the company, inflating and deflating it's value. But it has nothing to do with the company, it reaped it's cash in the IPO, and only could affect it now if stock options are used for bonuses(which they are more and more). Besides, I may trade a few thousand stocks a week, but the big boys are trading thousands of shares an hour in some cases(or millions, look at AMAT!). That is what affects stock prices, when they pile in en mass, and drive the price up 10-30% in a few hours. If we are quick, we can go along for the ride.
I have fed quite a bit of my earnings back into my endeaver, buying a computer, books, two new phone lines, monthly access fees to isp's and quote services. We are collectively creating a new industry with all the revenue generating offshoots that go along with it. And, most importantly, we are participating in an exercise of pure capitalism, which is what this country is founded on, free markets with unlimited potential. That's why we are the most powerful economic power in the world. I just finished Learn to Earn by Peter Lynch. It has a great first chapter, describing the evolution of our capitalist society. It should be required reading in high school, at least I'm going to see if I can get my kids to read it.
Thanks for the dialogue.
-Tim |
