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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: TraderAlan who wrote (2652)	8/11/1999 5:08:00 PM
From: Dan Clark	Read Replies (1) \| Respond to of 18137

Alan, regarding "...collapse of the middleman...", I agree that this is the fundamental issue. In general, the Internet has resulted in a more efficient economy. Goods and services producers reach goods and services consumers more effectively. Long, convoluted sales and distribution channels are becoming much more direct and efficient. The added value of the goods/service producers increases as the added value of the middleman decreases and/or changes. In the past, the broker was both the repository of financial "wisdom" (analysts reports, ratings, etc.) and the place where we bought and sold stocks. Now we can get the financial "wisdom" in multiple places and usually directly from the source - the analyst. Why pay for the brokers overhead? Simply "pay" the analyst! Why pay for the privilege of having someone else enter your order? Enter it yourself! The problem is that the old-line financial institutions know this! They know that we are midst of a massive paradigm shift. So do they willingly adapt to this change? No, they fight to save the old order. They also know that the daytrader is just a very small (but visible) symptom of this change. Therefor, they use the daytrader as a whipping boy to drum up support for their cause. Historically, the move from an agrarian society to an industrial society caused massive upheavals and power/money shifts. Likewise, the move to the Internet-facilitated society is causing massive changes. And yes, I think this is a very good thing! In the short term, we unfortunately have to deal with these old-line organizations until they either adapt or die a natural death. Regards, Dan.