Herc,
my point of view (arguable, but what isn't?):
1. Commissions saving is irrelevant. Daytrading as such has certain expences being built-in, commissions is one of them.
Scalping requires Level 2 - it doesn't mean you would choose investing JUST to save on Level 2 feed cost, right?
2. Buying and holding onto a promising stock for 3-5 years DEFINITELY is more profitable ONLY if it fulfills what it promised. Yeah, you could make fortune holding DELL, but you could also hold VVUS from $80? If you object that one has to study fundamentals etc making the pick for years of holding - right, but what does it have to do with daytrading?
3. Daytrading definitely carries less risk (assuming one applies the rules) since daytrader has less exposure to the market and doesn't depend on those infamous 50% gaps down.
4. If your point is, investing is more profitable than daytrading, it seems to be fruitless discussion. There are good investors and bad investors... good daytraders and bad daytraders. Yeah, good investor beats bad daytrader... I made over 600% during last 11 months rarely holding overnight. I know people who beat this result. Probably, there are long-term holders that have this kind of return... like I said, it comes down to how good one is in what he does.
Like I said, just my thoughts...
Regards,
Vadym |
