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

To: KymarFye who wrote (11931)	2/19/2001 12:57:09 AM
From: TraderAlan	Respond to of 18137

KF, Hilarious. Alan

To: KymarFye who wrote (11931)	2/19/2001 2:47:49 AM
From: ig	Respond to of 18137

Here's an official definition of Smart Money: ================= The American Heritage Dictionary of the English Language: smart money: 1. Games: Bets or a bet placed by experienced gamblers or those having privileged information. 2. Informal: a. Experienced, well-informed investors “Smart money is supporting the conservative presidential candidate.” b. Investments made by people experienced and well informed in matters of finance. 3. Law: Compensation beyond the value of actual harm, awarded by a jury in cases of gross negligence or willful misconduct. ================= I also found the term used in a 150-year-old U.S. Supreme Court opinion on the case of Day v. Woodworth (1851), confirming that the term was once used to describe what we now know as "punitive damages." So how did we get from punitive extraction of money to something that now means positions taken by the experienced and well-informed? Well, here's food for thought. In sports there is a classic axiom that says a Winner must be willing to punish weaker opponents. The thinking is that for a Winner to stay at the top of his game, he's got to play his best game at all times and to work hard to get even better. He mustn't relax his game, not even against the weakies. Doing so would weaken his own game. So, when he pits his full game against a much weaker opponent, the opponent feels as if punishment is being rained upon his head for being presumptuous enough to play in the same game as the highly-experienced and well-informed expert. Now, a question: Which game should an experienced, well-informed trader bring to the market? Should he bring his Real Game, punitively extracting (smart) money from those who have no business in the game? Or should he give the inexperienced, poorly-informed contraparties an even break? ig