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


To: BradC who wrote (7167)5/5/1999 6:44:00 PM
From: TraderAlan  Read Replies (1) | Respond to of 12617
 
Brad,

You're absolutely right that it's the mutual fund holders who will decide the market's fate if the big selloff comes, not the day traders.

But very few of the newbies entering the trading game the last 1-2 years have ever sold short. They're just chasing momentum when prices are up and running for cover when they drop. They won't affect the scheme of things during a big decline as they'll already be washed out of the markets, leaving the game to the small core of real short-term traders who took the practice seriously in the first place (and who have always been there anyway).

Alan



To: BradC who wrote (7167)5/5/1999 8:12:00 PM
From: E. Davies  Respond to of 12617
 
I agree. In fact I think that daytraders have done a lot to prevent a major market crash.
Short sellers are pretty much the only ones who are happy to buy into a falling market, and the most quick to buy when the market starts to turn back up.
Things are more stable big picture when fear & greed happen in both directions and balance each other.
Eric