I remembering trying to dabble in day trading. Trends are easy to see...on yesterdays price chart.
Look at the stats - the vast majority of day traders lose their money. I'm sure a couple win, but most of them lose.
Beyond that, today's markets have been engineered away from fundamentals. So most rules and correlations and pretty much everything can be tossed out if you're investing/trading today.
Wrong. Microseconds matter in today's markets.
E-X-A-C-T-L-Y
:awe:
The problem is there is way to much insider trading. To many people conspiring inside and outside to make or break companies or manipulate their stock. People with billions who can change the stock price on a whim. They also have computers and software that knows the human psyche. They know the breaking points and fear points. I remember reading about a company that said they had hired over 100 people with PHD's to create their trading software. It can very much be a psychological game and they have the computers, inside connections, and money to manipulate the market how they see fit.
Some people can play off that and learn the system. But it's only a matter of time before the system changes and they suck you dry. How many times have we heard "I used to day trade and had a lot of money before I lost it all and started doing _________ (insert new company name here).
Isn't it something like only 10% of stocks are actually owned by normal people? The rest is hedge funds and companies. To much conspiring to play that game.
I was watching a solar stock once and people were talking about it. They said "it's going to close at this amount". And sure enough is closed at that amount on the penny. And it wasn't something small or close to start. It was a massive drop. If you watch stocks to over a period you will see it start to drop or gain, you'll be like why?? What seems like no reason. Then all the sudden you'll hear an announcement one day in the news paper. The KNEW that announcement was coming even though it should have been secret. The whole system is total corrupt crap.
Why would someone sell if their stock goes down a few percent within a day? Why not just hold until it goes back up?
Why would someone sell if their stock goes down a few percent within a day? Why not just hold until it goes back up?
Wrong. Microseconds matter in today's markets.
That's one of the things I try to tell people who want to invest - the stock is based not on the company performance, but on where investors put their money.
That's why, for example, even if you think bitcoin is a horrible scam it could make sense to buy it - if it's going to catch on for investors, and sell when it does.
On the other hand companies who do great can see their stock go down. And yes the system is largely rigged for the big guys to drain from it.
Exactly.The transactions today occur in milliseconds, so you can't possibly keep up with what is happening in "real time." So, only computers can truly handle this as ticker tape just doesn't cut it.
But, to answer your question: about tree fiddy.
Milliseconds are made of microseconds.At what point in the trading chain does microseconds matter? Network latency is still measured in milliseconds, right?
Most day trading is gambling rather than investing. I don't recommend it.
Isn't it something like only 10% of stocks are actually owned by normal people? The rest is hedge funds and companies. To much conspiring to play that game.
The stock market in general is basically gambling. Even if you bought an index fund, there's no guarantee that 10-20 years from now it'd be worth anything.
I think it's closer to 30-40% own stock, but that's either their employers or through something like a 401k.
0.00000 < 0.00001.you can win big at trading penny stocks. the ones at $0.00001 can't go any lower and they can only go up. most are volatile and can move to $0.00002 easily.
Why would someone sell if their stock goes down a few percent within a day? Why not just hold until it goes back up?