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BelAirCap@xxxxxxx wrote:
> It is my personal experience
> that people who nickel and dime the market through daytrades never make as
> much as those who collect the ENTIRE move.
The entire move, though, may be even *down*, and you can still make a lot of money
on the long side. This is especially true with the more volatile stocks. As far
as "collecting the entire move," in almost all cases we're only talking a modest
increase in value. In a good year, the average stock will only increase by 20% or
so. Nothing much to get exited about here. It has most likely bounced around
quite a bit during this period, and it doesn't take a genius to figure out how to
profit from these moves.
> They do, however, make their
> brokers extremely happy and wealthy.
I'd hope that anyone trading this way is making quite a bit *more* net than their
commissions. Therefore, if their brokers are being made happy and wealthy, the
trader is as well.
> Also, the only way to collect on those huge gap openings is to be
> in the market overnight.
It's the only way to get hammered on these gaps as well. Losing five figures on a
trade instead of my usual three is not my cup of tea. Personally, this represents
an unacceptable risk, and I know some traders who are giving second thoughts to
overnight holding after suffering some huge losses lately.
Regards,
A.J.
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