Thom Quotes a Day Trader

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Sobieski
Sobieski's picture

 Thom is going on and on quoting a day trader.

No, not the E-Trade baby....

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smilingcat
Day traders are gamblers.

Day traders are gamblers. Parimutuel betters is what they really are. So what did you expect. A more decent one doesn't talk about how much they made in a day because some poor soul had to have lost all that hard earned cash.

Most day traders go bust within a year. And no I don't feel bad for them. They are "professional" gamblers.

 

Sobieski
Sobieski's picture
Actually, you don't appear to

Actually, you don't appear to know anything about traders or parimutual betting.

 

 

smilingcat
Sobieski wrote: Actually, you

Sobieski wrote:

Actually, you don't appear to know anything about traders or parimutual betting.

I make "bets" on the stock in hopes of it going up over short period of time then sell it for reasonable profit. I see things and if I think its a steal I may engage in option trading or outright limit/market buy. and like wise, when the price reaches some perceived peak, I sell for a profit. I'm not interested in long term holding for a modest return of dividends. I will take advantage of it whenever possible.

Was there any underlying basis for the buy order or the sell order. There is some fundamentals being looked at but lot of it has to with the psychology of the market. And I'm making a bet that it will zag and hope that the market will zag instead of zig.

Now duration of my holding is relatively short. And during that time, did the actual value of the company change (excluding the valuation based on the stock), the actual tangible assets, receivables, deliverables... Not really. Yet, I made a profit. So where did this profit come from? Well, it came off of someone losing money in the said stock. It's parimutuel in that what I gain or lose, someone else is losing or gaining. You can think of the cost of the trade is what the house skims off the betting process. In this regard, it is parimutuel betting.

The traditional floor broker's job was somewhat different. They were the ones who aggregated the orders and would buy and sell so that the orders could be processed in an orderly fashion. Floor broker is executing the actual trade so they are not engaged in the betting process.

So this is my explanation. Now if you are kind, please explain to me of your statement.

humbly and sincerely,