Doesn't anybody find it scary, all these day trading firms popping up here and there....I mean, yes, in an upward market, anyone can throw money at a trade and make cash, but in a tough market, the 29 out of 30 trades who fail will realize their shortcomings. All of these newly started day trading firms will realize that they are all fighting after the same pool, a pool which will then start shrinking.
Tenuous markets are when clients come flocking to more established firms offering some guidance. Its an established cycle.
What ever you think the percentage of success is 1 in x traders make it, that means x-1 traders fail, and some fail miserably.
I have been around long enough to tell you that a severe correction of 6 to 9 months if not a bear market will put these firms out of business. Your hard earned cash is with them.
Just be careful.
On a side note, this kind of activity, lots of merger activity in brokerage firms, lots of stock deals, incredibly volatility, and an dramatic increase in new ventures offer stock market services, hints at a market top.
Regards,
Steve@yamner.com |
