Re: Re: Investing

From: Randy Barnes <rbarnes@mindspring.com>
Subject: Re: Re: Investing
Date: Wed, 02 Sep 1998 11:30:11 -0400

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> 
> Date: Mon, 31 Aug 1998 00:31:06 EDT
> From: "Michael Kurela" <mkurela@hotmail.com>
> Subject: Re: Investing
> 
> >Date: Wed, 26 Aug 1998 23:15:29 -0400
> >From: "Steve Foulks" <steve_foulks@up.bresnan.net>
> >Subject: Re: Investing
> 

> Stock markets are efficient ONLY in the broadest sense of the terms.

Michael, Steve, and others,

What a great dialog. Thanks for sharing your views, and thanks
especially for the depth of your discussion. I find validity in both
your posts and agree completely with both of you on many aspects of your
arguments, given the proper contexts and situations.  

Many people can and do make a fine living my trading the short term
inefficiencies in the markets. The last month has been especially good
for traders. More have probably been wiped out. 

I have studied the markets academically, and as a hobby, since 1982, and
hope to someday sit on my butt and successfully trade my own account for
my livelihood.  As a word of warning to many on the list that think this
way of trading is a road to riches, please realize that most people that
pursue trading as a career end up far worse off than they were before. 
I takes a great deal of money to get started, and under capitalization
is probably the top reason for failure. (Or second, right behind greed,
and just ahead of inexperience.)

The SOES (level II) trading offices that are opening on every corner
these days are the perfect place to see this activity in action. Within
2 weeks of opening accounts 80% of the traders are history. It takes a
long time and deep pockets to become an effective trader and is
definitely a full time career. For those that succeed the rewards are
great, but the markets are very efficient at devouring the weak. Watch
your back, front, and sides.

Most of us are far better advised to make regular investments into index
funds, SPYders, or simple index-beating strategies and letting the
EFFICIENCIES of the market and the magic of TIME do their thing. A young
person with a little discipline can pack away a 7 figure nest egg
without winning the lottery or attempting a career of a market trader. 

Best wishes to all you traders and investors alike. 

- -Randy

- -

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