Where Did All The Stocks Go?
As Dr. Livingston was wont to say: "The tales of my demise are greatly exaggerated." So is the case with the state of the stock market today. The market is still firmly entrenched and despite horrendous losses, still maintains a fair amount of the nation's invested wealth. Volatility in the marketplace has become an acceptable risk. The Las Vegas mentality is now an investment mainstay and you either know how to legally game the system or you don't.
Heaven help the day traders. They have the most to lose. These investment mavericks have flaunted the cumbersome need for brokers and brokerage houses. These financial do-it-yourselfers want tangible control of their hard-earned cash. That is understandable. The logic of losing money you invested yourself is far more palatable than being informed via a statement of telephone call that someone else has lost your money.
Most online stock trading professionals would advise against day trading -- and in most cases, their advice would be spot on. Day traders experience a disproportionate amount of losses when compared to professional services. This is undoubtedly due to the fact that professional traders undergo a rigorous training regimen. Moreover, the gravity of buying and selling stocks with other people's money is never lost a dutiful trader.
The training is necessarily complicated. Though much is made about the endless string of financial terms -- they are very real terms and are, indeed, very complicated. It's easy to pigeonhole bankers and brokers and Wall Street -- and for good reason -- but it's important to remember that these institutions create real wealth for real people. Yes, bankers do indeed profit, but so do shareholders. Say what you will about Trickle Down economics, but wealth can indeed beget more wealth.
You can day trade to your heart's content. It's your prerogative. But know the pitfalls and perils. Yes, you are in more control of your money -- but unless you are a professional, you won't enjoy some of the fail-safes and protective measures meant to protect larger financial institutions. The Federal Trade Commission can ensure your stocks are recorded and rewarded correctly, but they can do little if you happen to be defrauded or scammed. Stick with the professionals. They're not the bandits the media would have you think they are.
Article Source: FxTradingStock.com
About the Author
The key to lucrative online stock trading is having it professionally managed. Don't lose what precious little you might have left doing on your own.
by: Myer Thompson
Total views: 89
Word Count: 392
Date: Thu, 7 Jan 2010
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