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Friday, November 7, 2014

Day trading is not profitable absolutely!

People do not know that strains are considered to be "equity investment = gambling". The cause is probably a large influence of the epidemic was day trading from around 2005. If you go to the equity investment corner of the bookstore, are lined with still a large amount of day trading Reference.

But if you say from the conclusion, let's stop because day trading is not profitable absolutely!

If long-term equity investment, and that we have always rises Historically it can be said that it is "positive sum game". But day trading = short-term trading in principle to the "zero-sum game", people who lose a person that is win is not just a "speculation" that exist only for the same. While repeating or losing or winning, because the commission is run up by frequent buying and selling, you will have been cut reliably assets only fee amount.

To begin stock market, individual investors with respect to the speed of information is located in the most unfavorable, end. This is also the era only there was no over-the-counter trading, even in the modern Internet has developed, is a universal fact that does not change at all.

For example, when the news that is material to a company has been presented at the net, such as the news is announced original site and securities company, before sending the information to your personal computer, is not already know that information. In other words, is already proprietary trading department of information based on companies and securities companies when you come to know such information, you should have been buying and selling by proactively. Eventually all the information that comes around to individual investors not only to information of "Degarashi", and than had been buying and selling on the basis of it, it is only in the manure of the market.

Also, likely but Michio Mr. President and Matsui Matsui Securities had said in a magazine, in the Treasury of the securities company, information of "plate" that buy and sell orders of investors is marked is seen everything from top to bottom is. In the course individual investors of the tool, plate information only and does not see the current up and down the number of price ticks.

Also because the securities company is also a bookmaker, If you order through the at least their securities company, Who is taking out how much the order of, you can grasp all. Be the biggest noise in day trading "Misedama (false order of such shite muscle. After the price manipulation is possible order is canceled)" also judgment of, to predict because whether Whose orders if Treasury is understood easy it is a translation. The individual investor, or order that it was written in the plate that orders whether true of Misedama, because judgment material is rarely, only would still be used to fertilize the market in the short-term trading.

In this way, on which is inferior in both quality and quantity of information overwhelming, because I mean that participated in the calculation on a profitable not zero-sum game, I can not have that individual investors can win at day trading. Individual investors, and taking advantage of the benefits that can be freely set period of time and investment without restriction, is we should devote itself to long-term investment.

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