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Message: Day Traders

Day Traders

posted on Feb 07, 2006 07:17AM
IMO, day traders aren`t involved here to any large degree. Yes, there is good volitility and volume (good for day traders), but there is one big flaw in the logic. To effectively day trade a stock, it must be marginable. PTSC isn`t. So, if you bought 100k shares at .20 this morning, and were lucky enough to get a sell at .25, yes you`d have made a cool 5 grand. BUT (the big butt), that money from the sell, the entire amount, is dead money until the settlement date, usually 3 days out. Not good for a day trader.

Also, IMO, anybody who day trades an OTC stock is a fool. Virtually all OTC stocks (including Nasdaq stocks) are ``managed`` by MMs - the ultimate day traders, who have control of the market to a large degree. Any day trader who has done his homework will play the NYSE. Virtually all marginable, most with good volume, many with good volitility, and no MMs involved. Been there, done it.

JMHO based on some limited experience.

SGE

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