Scalpers and day traders are nuisance to the trading world. They hinder and obstruct price movement all the time. They are clogs in the wheel that is churning profits to some natural players, yet these sleazebags try to ooze out some of it. Secondly, you should know that if you increase the time frames of your trading horizons volatility drops. An equity trade becomes lot less riskier. A stock may go down $1 in one session but in 2 days time it can regain a $2 price differential. You seem to get your ass backwards my friend. Read some books on how long term trades and holdings are more profitable. Risk of loss is reduced , because there is lot more probability, that it will work out in your favor. Most day traders lose their entire accounts under 6 months, that is why SEC is very strict funding anything under $25,000. Got it?
What a complete lack of understanding of how markets work. You are an idiot. Without short term traders overall liquidity would be much lower and would hurt all investors. The fact that you can't understand this means you have never traded.
You mean to say scalpers are a Gods gift to the markets? Liquidity is provided by market makers and not day traders.
ok day, what exactly do you do in this business? what is your experience (besides posting your inane, paranoid rants)? i'm assuming you will crawl back under your futon now.
Secondly, you should know that if you increase the time frames of your trading horizons volatility drops. An equity trade becomes lot less riskier. A stock may go down $1 in one session but in 2 days time it can regain a $2 price differential. You seem to get your ass backwards my friend.
I have only seen such bile in people who are stuck in an extremely uncomfortable position and are lashing out. People with success usually become more forgiving what are natural players? I understand the 25k SEC restriction. Am I OK if I have more than that? I am probably wasting my time.... 90% of restaurants fail too in six months to a year. And they survive on paper thin margins. Do you despise them too? Maybe you should have a beer or something.....
Like most newbies, you are completely wrong about everything! Traders provide liquidity to the markets, next time you want to get out, thank a trader, otherwise the spreads you would pay would be much greater then the few cents they are today. And in times of greater mkt volatility, there would be very few bids if any at all. Look at the market for CDO's and Muni Bonds, it isn't there, and very few are getting out! Good scalpers have very low equity drawdowns. It has been said, that 90% of all businesses fail within 5 years, trading is no different. Do you really think we need this anti competition, anti capitalism move by the SEC? I don't!
I don't think scalpers are "dis-respected" in the trading world. However, YAHOO's with only 5k who try and trade 500,000.00 in intra day capital are definitly laughed at. But, scalping in general, is not looked upon poorly. Hell, all the "floor Traders", market makers, scalp, hell even Hedge Funds Scalp time to time. Of course the ETRADER sitting at his office at lunch scalping 2 shares of GOOG in his 401 K , well enought said.
Yes, I believe I know what does it mean. Look, leverage does not make you better or worse trader. It is simple tool that can improve your result. If you are idiot it improves your result in negative way. Ok, I agree, thee are black swan events but for example calculate what will happen with my account if meteor 10 km in diameter will hit us has no sense. In my country we tell: If you can not defend against something you need learn love it. Btw, 4:1 during day is not any big danger for anybody who knows what is doing and follow some basic rules. I am daytrading, range trading and swing trading. I believe in todays market the swing accounts are more endagered than daytraders account. Your account by scalping can not be wiped with some downgrade or rumour. Simple in todays market looks to me daytrading safer, my account is not enough big take at once many dozens of small positions both ways what is necessary to be hedged.