Silicon Investor (SI) -- The First Internet Community

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.

Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: thomas odonoghue who wrote (7848)	8/1/1999 6:11:00 PM
From: ecommerceman	Respond to of 13953

Thomas--Yeah, daytrading is a loser's game much more often than not, mainly due to the commissions which wear you down over time. There's an emotional price you pay, also, and I'm not in any hurry to pay that, either... More info from the Bull Market Report: $$$$$ ONLINE BROKER DISCUSSION COMMENT: Our online broker stocks have been knocked down a bit and many of you are concerned. We can feel the tension in your emails. We would like to make a few comments. We are not concerned with the whole industry. The number of new online accounts continues to grow at rates approaching 50 and 100% annual rates and we see no signs of a slow-down ahead. This is what drives us when we look for investments. Profits will come in time, and it will be the Street that decides what the valuations of the companies are. (I hope you know what I mean by this - it will be the investment community - you and me - that decides what these stocks will be trading for.) We are confident in the ability of the managements of the online brokerage companies that are in our portfolios to grow their businesses at great rates and then to turn them into profitable machines in the future. This is why we bought E-Trade originally at $5 a share. This is why we are still buying this company and still buying Charles Schwab (SCH) at current levels. This is why we have a buy stop on Waterhouse (TWE) at levels slightly higher than the current price. We think the future is very bright for investment related firms and if the bull market continues, we think these firms will prosper greatly. The big risk is a steady decline in equity prices over the next two years, with the Dow falling from 11,000 to say, 7,000. In this type of scenario, it will be difficult for anybody to make money in the markets, but this type of situation and mood will do the online brokerage industry no good at all. However, since we think the Dow will be higher in two years, we are not greatly concerned about the risk of our investments in this sector.