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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: GraceZ who wrote (152683)9/30/2008 1:59:55 PM
From: MulhollandDriveRead Replies (1) of 306849
 
Trading introduces negative expected returns because of the sheer volume of money siphoned off. Large short selling positions increase the probability of negative expected return because all short selling requires two transactions and involves margin, trading as opposed to holding. A long holder could simply buy once and live off the dividend for the rest of their lives.


what???? trading is 'siphoning money off?'

you are simply wrong

i know that both you and your mentor ahahahh believe that trading isn't a viable investment strategy, and that all traders eventually go bust, but the fact is that trading provides a mechanism (and necessary liquidity) for those who wish to continue to 'hold long' (their entire lives, not recommended btw) to hedge their exposure to vicious bear markets resulting from economic downturns
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