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To: Rita who wrote (351)	7/8/1999 1:39:00 AM
From: John Chapman	Respond to of 504

Rita: Thanks for the article. From the article: "Burnham surveys overall trading volumes in Internet and high tech stocks to help reach estimates for volumes at the online brokerages" If I understand what he is doing, the percentage of online trading would vary directly with the volumes in Internet and high tech stocks. This seems to be based on the logic that those who trade online invest in internet stocks and high tech stocks. While this is probably sound, I would think the vast majority investing in those stocks are not yet online investors. Thus as those groups loose favor, the percentage of online investors would fall and vice versa. I think this is what his numbers show. While his method could have some validity, another gauge would be a correlation between the growth of online investing and the growth rate of retired baby boomers. That will be the major spurt of growth which will then be fueled by the computer literate generations as they reach their 40's and discover they need to start saving. If one wanted to accurately measure online brokerage trading growth, just open accounts with a statistical sample of the brokers and do trades during statistical sampling periods. Then go to each and learn how they number/identify their trades. For example, some might simply begin with the number one each day. All will have a trade identity system. I would think someone is already doing this.