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

To: TraderAlan who wrote (10660)	11/18/2000 2:54:36 PM
From: Dominick	Respond to of 18137

TraderAlan Baring short term and swing trades, direct access and computers will have a significant effect on investors when they're tempted to time the market via ongoing technology. They become more intimate with the market. I did some studies years ago using Ibbottson's "Stocks, Bonds, and Inflation" data on the S&P 500. Using the monthly stats and monthly dollar cost averaging, the recovery period was much shorter. And this wasn't counting reinvested dividends. If I remember correctly, they're only a few short periods during the year the market makes most of its gains. Missing just a couple of days due to trying to time the market, cut about 50% of the gain. Having a hunch about human nature, I'd say the more intimate the public gets with the market along with reports by analysts and newsletters, the greater the temptation to play. JMHO, Dominick