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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: kami who wrote (51432)	5/21/2000 12:14:00 AM
From: Wayners	Read Replies (2) \| Respond to of 99985

Don?t be mislead by the pundits, day trading is a great business so long as the market goes up. Think about it, you buy stock with other people?s money on margin, continue to leverage your stock position and so long as the market cooperates by moving upward, you can become a wealthy individual using other people?s money. This dream job, however, becomes a nightmare when the market makes a dramatic movement downward for a few consecutive sessions. All of a sudden you face a margin call for cash that you don?t have, so you are forced to sell your stock in a falling market. Once this process begins, it has a spiraling effect. Which is exactly what happened in early April. The explosion in margin calls was one of the three factors that led to our markets major correction. This guys doesn't know the first thing about day trading. Assumptions about margin to begin with. Daytraders are not required or forced to use margin. Second who needs the market to go up? Thats stupid. All I key off is current naz direction until I see a reversal on the daily chart. Its INVESTORS that get clobbered, not the guy that is in and out quick. Shorting is like shooting fish in a barrel and yes--its daytrading.