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


To: Bilow who wrote (2654)8/11/1999 1:54:00 PM
From: -  Respond to of 18137
 
Carl,

You create some good examples. I would strongly object to raising margins, because that would cut my rate of return. I would probably just move back to Futures/Options trading, to regain the desired level of leverage. What would the rationale be there -- that traders are blowing out due to using too much margin? Are those daytraders? No, obviously not. Those are investors, carrying positions without stops. So why restrict daytraders, based upon the actions of people who don't even do it??

The same thing with an 87-style crash. Would that occur because of the daytraders? No, more likely due to Institutions, Hedge Funds - LTCM-type stuff, along with Global market conditions. Again, where does the logic trail lead to daytraders.

I don't think regulation designed to protect ourselves is the answer to any of the perceived ills. Daytraders are simply the target of some institutions trying to protect their financial interests in a misguided fashion.

-Steve