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

To: exdaytrader76 who wrote (15160)	2/4/2002 6:27:56 PM
From: Dan Duchardt	Read Replies (2) \| Respond to of 18137

It sounds like you are saying the market is wrong. It's not a question of right or wrong. It's a question of whether it is attractive to a segment of the participants that provides the fuel that it runs on. How much volatility is excessive, anyway? When the investors perceive it to be too much and yank their money out of the game. The market is what it is. It changes. Not always for the better. No one was complaining about volatility when everything was going straight up. Perhaps because there was little volatility to complain about. By the definition customarily used to calculate historical volatility, a market going up in a straight line on a log chart has zero volatility. And of course there were a lot of investors perfectly content to leave their money in place as long as it was growing. If volatility was making the difference between a gain of 100% or only 50% in a few months, that is much more tolerable than the difference between maybe making 10% and perhaps losing 40%. There were also some voices, perhaps only those crying in the wilderness, trying to raise an alarm that nobody wanted to hear. They certainly were not getting the same press time as the hypsters who were accumulating a fortune while the mania continued. Believe it or not, there were some people who did not get rich during the amazing run up because they were "too conservative" to take advantage of what was happening. Some of them actually were complaining that there were precious few sound investment opportunities available anymore. Dan