Subscribe to this topicForums > General Investment Discussion > Topic: Longterm VS Daytrading ---- think twice....
| Dec 19th 2007, 05:43 Cash Yiyuan |
Longterm VS Daytrading ---- think twice.... | |
We need to recongise that daytrading is an artform and not many are successful at it. I urge all investors to look long term, rather than short. After all, would you purchase a business and then sell it after a week, just to make a quick buck - no I would not...nor would many successful business people. A good option for those who do not wish to spend much time researching and maintaining orders etc, are term deposits and investment certificates. If you have any questions please contact myself. Regards, Cash Yiyuan SL Capital Exchange |
||
| log in to reply | ||
| Dec 19th 2007, 05:56 Sully Okelly |
Re: Longterm VS Daytrading ---&#45 | |
| Good Morning Cash, I will speak for myself. I personally enjoy daytrading. Not so much for the profit, but for the action. Some people are legitimately trying to earn long-term income, we that daytrade only help them in the long term. The market needs the liquidity for growth companies. This is part of a game, one you can take very seriously, or not. That said, the daytrading is definately more fun. It also allows us to learn without mortgaging the house, then losing it :) I know from talking with others that when daytraders drive the price down quick, that is when the longterm traders jump on the band wagon. The exchange gets lots of commissions that will be spent on improvements and dividends. Everyone wins! So, come play with us, you have the linden to lose ;) We'd love to lighten your load! Merry Christmas All! |
||
| log in to reply | ||
| Dec 19th 2007, 06:02 Cash Yiyuan |
Re: Longterm VS Daytrading ---&#45 | |
| Hi Sully, Yes you raise a good point, but learning is actually driving liquidity down, unless longterm investors do snap up the bargains. To add to that a longterm investor who is not educated will look at the price and wonder why her/his investment is not growing. Remember the point of why companies list on an exchange - to go public, to let investors own a part of that company. Thats all I am trying to point out in this post. Take Care, Cash |
||
| log in to reply | ||
| Dec 19th 2007, 08:14 Yanik Lytton |
Re: Longterm VS Daytrading ---&#45 | |
| Morning Cash, I, for one, do both. Investing AND daytrading (more like weektrading), and for profit. And it pays real fine. Your point is valid, but mainly from a CEO's point of you. I don't care much knowing that my little investment is now worth 3 times more. It will be worth that only when I cash it out. Two things come to mind after reading your post: 1. Have you noticed that on the trading page, in large bold letters posted well in sight, is the Market Volume. If everyone BUY and HOLD, then what would volume be useful for? Wasn't Arb's latest press release exactly on that: VOLUME ? 2. On each trade, a 2.5% commission goes into CapEx vault. No daytrading, no volume, no commission, no profit for CapEx. That said, a few companies are worth investing in. Those see their share price go up even with all the daytrading going around. Daytrading is inherent to stock exchanges, RL or SL. Some CEOs may dislike it, but it's part of the deal of going public. Call it the company's risk. Yanik |
||
| log in to reply | ||
| Dec 19th 2007, 12:53 Sully Okelly |
Re: Longterm VS Daytrading ---&#45 | |
| Nice Points Yanik :) There isn't real any day trading here anyway, because the market is always open, so your term weektrading(WT) is likely right on. The liquidity issue is a no brainer. There isn't any if you don't have us WTs. We move the market, let's not forget that. I loved the point about how the value is only there if your selling. Unless a dividend is attached the only income you receive will be capital gain on trading. Most companies don't pay any dividend and the ones that do, several excepted, can't brag about their returns :( Lastly, Wt is good for the company in several ways, not the least of which is the daily free advertizing it receives from exposure to traders. Also it should be pointed out, that the companies listed in here are earning their linden in their field of expertise, not trading their own shares. The ones that do earn linden in the exchange are professionals and are doing the exact same thing you and I are doing :) Buyer beware! lol Sully ps. I have decided to give myself a clear conscience for the holidays and to that end, I'd like to apologize to you Cash for my rude "dude" remarks earlier this year. I was distasteful and infantile and I'm truly sorry. I have realized that I was wrong to be sarcastic to you and even if we disagree from time to time I'd like to co-exist with you peacefully :) Please forgive me and have a wonderful Holiday Season. |
||
| log in to reply | ||
| Dec 19th 2007, 14:04 Cash Yiyuan |
Re: Longterm VS Daytrading ---&#45 | |
| Ty Sully, that was long forgotten as far as I am concerned. I don't hold personal grudges :) - thanks for the mention though. I understand where you were coming from. Best Regards, Cash :D |
||
| log in to reply | ||
| Dec 19th 2007, 16:14 Arnaud Villota |
Re: Longterm VS Daytrading ---&#45 | |
| I will throw my 2 cents worth in here. I have yet to understand why CEO's are really concerned about "daytraders". First off I agree with Sully that no real daytrading takes place, if it did I wouldn't have such a problem balancing my portfolio with my miniscule limit buys and sells. :) Secondly, I also agree with Sully's point that an interest in a stock, whether good or bad, is really good in the long run. (I aplogize to Sully for stretching that point) I am in this for the long term as well, but remember the long term in SL is about 2 to 3 months, if we are lucky to survive the latest scandal, and that is stretching it! So if I can do a little day trading and make a bit of profit to offset my high risk longer term investments, then so be it. I don't see where I am hurting anyone. My concern is, and where the education should come in, is the point of what IPO's are supposed to be really for. I think MECH took a hit (to use an example I am intimately familiar with) by people who held out on the IPO and took advantage of the lower prices when MECH finally went to market. Some of those people actually believed that the stock they were buying, AFTER IPO, were actually funding MECH! (I am not talking minor Lindens here, I am talking of 100K lindens plus!!!) They didn't realize that they were only funding other traders, not MECH at that point. The opportunity to fund the MECH dream was over as soon as the IPO went to the trading floor. I think that has happened to a lot of companies here and on other exchanges, because people really don't understand what the process is and what an IPO really represents! If CAPEX were to do anything to help with this, I think education along the lines of what IPO's are actually about will really help the entrepeneurs among us. I believe a lot of people look at IPO's to make a quick buck and don't really understand what the underlying philosophy is all about. Some basic classes on this topic, sponsored by SLCAPEX, may go a long way for all of us. |
||
| log in to reply | ||
| Dec 19th 2007, 17:11 Ima Janitor |
Re: Longterm VS Daytrading ---&#45 | |
| Arnaud, you are exactly right. One investor who is a great person and gives good feedback bought over 300K $l worth of shares a few days after the IPO. Now I am glad he took that investment and believes in MECH, but all that money went to someone else and not to mech. If there were classes or help for new people so that they could learn when to buy or not if their purpose is to really help a company, it would really help future IPOs. |
||
| log in to reply | ||
| Dec 19th 2007, 17:57 Isegrim Nikolaidis |
Re: Longterm VS Daytrading ---&#45 | |
| B.T.W. Ima, ... will Riot Mech do a secondary offering of some sort... hmmm is it possible to do so at all. I believe interest in the Mech project has grown with all you have been putting down lately. just like to know if there are ways to invest directly into the project. just curious. :) |
||
| log in to reply | ||
| Dec 19th 2007, 18:10 Ima Janitor |
Re: Longterm VS Daytrading ---&#45 | |
| Maybe :) when we launched the IPO we made a total of 10 million shares to sell over time to finance the first set of stages as we grew. We have currently sold around 4 million shares. The hope is that the first stage will make enough money on its own to finance the rest of the stages without having to sell any more, thus increasing the value of people who already hold it. But, we set those shares aside to sell them, so most likely that is how we will finance future expansions. Currently we have it set to where I can sell small amounts on the market to cover small additions if the board votes on them, and if we want to do a secondary or large share sell off then I would need the boards vote. I doubt it would be as a secondary though, most likely we would simply place the shares we want to sell on the open market and let them sell as the market want them, that way it would not adversely affect the current shareholders to much. Me and the guys at YEP! have a great idea for tie in that would not only increase revenues, but also greatly increase the people / traffic coming to our sims, so that is something we will be reviewing and possibly selling shares to finance soon. But first we need to complete or get further along in our current phase :) |
||
| log in to reply | ||
1 | 