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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: HiSpeed who wrote (5681)	11/8/1998 5:22:00 PM
From: TraderAlan	Respond to of 12617

HSpeed, <Your assumption is that the stock market must stay in a fixed trading range or that it must eventually go back to zero> No, only that it moves in waves, i.e. 2 steps forward and one step back or vice versa. There's also quite a bit of statistical research that shows markets trend only 15% of the time and move in fixed ranges the other 85%. Alan

To: HiSpeed who wrote (5681)	11/8/1998 9:01:00 PM
From: Ira Player	Read Replies (2) \| Respond to of 12617

The capital markets were original created to provide a flexible method of raising capital for companies and provide liquidity to the "owners" when they wanted to sell. The investors return was in the form of earnings from the ongoing business. The rapid, speculative purchase and sale of share is a relatively new situation. (The last few centuries!) The concept of buying and selling in time periods measured in days is much shorter. This stuff of minutes, to the general public, only a decade. If, over a 1 year period, the unit value of a share increases by 10%, that is the only portion that is not a zero sum game. Yes, there is 10% more for "everybody". But if you got a higher return by going in and out of the market at the right time, the extra came from someone else. The money was not created like the 10%. It was redistributed. Ira