Traders provide much needed liquidity for market players, don't underestimate the value of good trading, most like gambling, a good market maker knows his/her worth...We are traders, we don't produce anything and take money from others without contributing anything of value to society. At least MSFT produces window, words, excel... which we use.
Some of us don't even trade the underlying, we place side bets with options. We are leeches?
50% of the Nasdaq 100 made up of just 6 stocks,
- Thread starter S2007S
- Start date
Yes, a nice way of saying most of us are losers, we provide liquidity to the market instead of collect liquidity from the market.
A cheap earnings option play on those 6 stocks could be traded with QQQ options. Keep that in mind next week for GOOGL, AMZN and AAPL earnings on July 30.
Don't forget the Fed on the 29th! More Powell spew!
Exiting the market is taking liquidity, if you're buying and selling in the short term, you are providing much-needed liquidity...you need to see the cup as half full instead of empty...Yes, a nice way of saying most of us are losers, we provide liquidity to the market instead of collect liquidity from the market.
This has been true more often then not in history, leaders dominating markets. Sure when it gets to an extreme it can correct, but earnings are also at an extreme right now ( huge profits for FAANGS losses for majority of companies out there ).
Amazon's sales are up 26.9%, what should the stock do ? Google's annual growth is 20+%, what should the stock do ? Bottom line is you won't respect their valuation unless their P/E is 4. So forever basically unless their business get's destroyed like Nortel.
With a PE of 143.7, I don't know. Assuming the growth rate stays at 26.9% in 10 years at the current stock price the PE would be ~15. If sales grows at 26.9% a year, in 10 years the revenue would be ~$800 B per quarter or annual revenue of $3.2 T or about 15% of the GDP of the US economy?
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Good points;
but calling them parasites sounds commie.
GOOG has a good search service/AMZN has been a good bookseller in the past.
MSFT=not really a tax;using MSFT= a choice.
I track Nasdaq, but QQQ more...…………………………………………………………………………… Buy or sell SPY if you want 500/505-LOL
Come to think of it, Government doesn't produce anything either. Maybe we should get rid of it.%%
Good points;
but calling them parasites sounds commie.
GOOG has a good search service/AMZN has been a good bookseller in the past.
MSFT=not really a tax;using MSFT= a choice.
I track Nasdaq, but QQQ more...…………………………………………………………………………… Buy or sell SPY if you want 500/505-LOL