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

To: Herc who wrote (4037)	9/15/1999 8:11:00 PM
From: Threei	Read Replies (3) \| Respond to of 18137

Herc, my point of view (arguable, but what isn't?): 1. Commissions saving is irrelevant. Daytrading as such has certain expences being built-in, commissions is one of them. Scalping requires Level 2 - it doesn't mean you would choose investing JUST to save on Level 2 feed cost, right? 2. Buying and holding onto a promising stock for 3-5 years DEFINITELY is more profitable ONLY if it fulfills what it promised. Yeah, you could make fortune holding DELL, but you could also hold VVUS from $80? If you object that one has to study fundamentals etc making the pick for years of holding - right, but what does it have to do with daytrading? 3. Daytrading definitely carries less risk (assuming one applies the rules) since daytrader has less exposure to the market and doesn't depend on those infamous 50% gaps down. 4. If your point is, investing is more profitable than daytrading, it seems to be fruitless discussion. There are good investors and bad investors... good daytraders and bad daytraders. Yeah, good investor beats bad daytrader... I made over 600% during last 11 months rarely holding overnight. I know people who beat this result. Probably, there are long-term holders that have this kind of return... like I said, it comes down to how good one is in what he does. Like I said, just my thoughts... Regards, Vadym

To: Herc who wrote (4037)	9/15/1999 9:13:00 PM
From: OZ	Read Replies (1) \| Respond to of 18137

Buying and holding onto a promising stock for 3-5 years definitely has been more profitable but definitely takes more CAJONES. WRONG Your statement combines elements of the FUTURE "holding onto a promising stock" and of the past "has been more profitable". You cannot have both. Holding on to a promising stock only pays when it delivers the promise. If you want to pretend that you had bought an AOL or a AMZN for nothing in a fully margined account and made 800 or whatever points in 5 years... Then we need to level the field by saying well I could have bought X stock this morning and rode it up for 20 points at which point I shorted it and took it back down 15 points and immediately turned around and shorted SNMM for another 10 points. In other words, if you had magical abilities, day trading and swing trading would make the most money. By the same token, as long as the abilities are equal, i would say that short term trading is always the way to quicker gains and losses. Any little coward can dart in and out, which is what I usually do. RIGHT and WRONG It is the supposed long term investors that inadvertenly get shaken in and out of their positions during unplanned shorter time frames that line the pockets of the daytrader. Converesly, it is the Short Term Day or Swing trader that cannot accept his loss and lets it turn into an investment that is separated from his capitol. Both are losers and truly the coward when they fade their plan. Buying and holding a quality big cap for 3 to 5 years does not take any COJONES whatsoever and is not as profitable but is the way to go for a person that wants to make more money than in a bank account but does not want to become a student of the markets... regards, OZ