DAYTRADING Fundamentals Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : DAYTRADING Fundamentals

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Raymond Duray who wrote (15110)	2/3/2002 1:20:50 PM
From: hypostomus	Read Replies (1) of 18137

Dear Mr. Duray - There are undoubtedly innumerable examples of egregious exploitation of the trading process in every market. However, they do not vitiate the value of short term speculation to traders on longer time frames. I presume from your remarks that you are an investor, or at least a position trader. If you look at an actively traded issue on a one-minute scale, you will observe the activities of traders scalping for 5 cents or less, daytraders "swing trading" for 15 cents, daytraders "position trading" for 50 cents, true swing and position traders making entries and exits for longer holds near the high or the low of the day, and institutions trading big blocks for the funds they manage (possibly including one that you are in). The trading process is symbiotic on all time frames. The exiting five-minute scalper gives me the entry I need for a fifteen minute trade. My exit gives the intraday campaign trader his entry. Both of us give you a nice entry point for you to enter a long hold. Active traders generate volume, which means that specialists and market makers can make their daily bread with a lower spread. By competing with them on ECN's we help to further reduce the spread. The translates into more profit for you when you exit your longer hold. Our volume makes the stocks you hold look attractive because other potential investors perceive activity in it as evidence of potential movement. The market is a fractal phenomenon. Do not condemn us because we choose to trade on shorter time frames. Does the buy-and-hold investor consider the campaign trader a vulture? Does the campaign trader consider the swingtrader a predator? Does the swingtrader consider the intraday position trader a maggot? And so on down the food chain. Each of chooses to trade in that time domain of the fractal market where he is the most comfortable. We are symbiotes, not parasites. No higher order creature exists that can live without them. The market by analogy is healthier because of them. Perhaps one of Victor Sperandeo's books is on your shelf. Read it for an eloquent defense of speculation. And remember, hypostomus plecostomus keeps the bottom of your aquarium clean. Without scavengers, you would be up to your ass in REAL trash. Best regards. - Mike

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next