Comments on: Stop Trading http://dailyreckoning.com/stop-trading/ Entertaining Ideas on the Economy, Markets, Gold, Oil and Investing Strategies. Fri, 10 Feb 2012 17:22:41 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: CorkyAgain http://dailyreckoning.com/stop-trading/#comment-19131 CorkyAgain Mon, 17 Aug 2009 22:35:24 +0000 http://dailyreckoning.com/?p=17855#comment-19131 If you want to understand why so many people are trading rather than investing in stocks, you don't need to look any further than the average dividend yield. When so few stocks pay dividends, let alone good dividends, it's no wonder that most people are playing them for short-term capital gains. Long-term gains are nice if you have the patience to wait for them, but people also need an annual income in order to make ends meet. If you want to understand why so many people are trading rather than investing in stocks, you don’t need to look any further than the average dividend yield. When so few stocks pay dividends, let alone good dividends, it’s no wonder that most people are playing them for short-term capital gains.

Long-term gains are nice if you have the patience to wait for them, but people also need an annual income in order to make ends meet.

]]> By: tony bonn http://dailyreckoning.com/stop-trading/#comment-19111 tony bonn Mon, 17 Aug 2009 20:52:07 +0000 http://dailyreckoning.com/?p=17855#comment-19111 this is a good point - stock purchases are often dominated not by investments but rather trading or speculation. the primary reasons for the shift into speculating are that technical analysis has taken over in many quarters and financial incentives are such that traders are playing the decapitalization which has been rampant since the 1960s... america is not the place to invest but rather speculate - a gift of central banking. also the prominence of program trading should not be overlooked.... thus we have a mixture of pathology and technology aiding the decline... this is a good point – stock purchases are often dominated not by investments but rather trading or speculation.

the primary reasons for the shift into speculating are that technical analysis has taken over in many quarters and financial incentives are such that traders are playing the decapitalization which has been rampant since the 1960s…

america is not the place to invest but rather speculate – a gift of central banking.

also the prominence of program trading should not be overlooked….

thus we have a mixture of pathology and technology aiding the decline…

]]> By: Dean http://dailyreckoning.com/stop-trading/#comment-19101 Dean Mon, 17 Aug 2009 19:44:57 +0000 http://dailyreckoning.com/?p=17855#comment-19101 Well that's nice, but where did the data for the chart come from? Did they really keep such data in the 1920's ? Also you need to compare volatility. When stocks go up and down 50+% in a year is it any wonder that stock holding periods have fallen so much? Well that’s nice, but where did the data for the chart come from? Did they really keep such data in the 1920′s ?
Also you need to compare volatility. When stocks go up and down 50+% in a year is it any wonder that stock holding periods have fallen so much?

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