If you were kickin' arond in 1959 and remember Dinah Washington...ahh the memories. So it's 2010 or some little yuppie called in the other day 20X and like the old testament, a day is like a second....and for some a second is a lifetime.If you think stock trading is an even up game you are sorely mistaken. Huge percentages of the daily trading volume on the NYSE are made by daytraders...and not 1% or 10% but sometimes well over half and a lot of it is done right at the opening bell. Day traders make their money a few pennies at a time..just real often and very very fast so a 1 second advantage over the rest of the field is a huge headstart. They are getting out of a position when the average Joe hits the buy button and its all technology.
The result is that prices chase one another and stampedes happen. Where the is a huge sell off for no good reason and a stock takes a ride as one position is replaced by another and the sucker who is late to the party gets wacked. Can you, the average Joe, purchase this technology? Perhaps but the cost of it will wipe out your normal profits so its a bulk thing, a conglomerate high roller toy, and when Schoenfeld's minions play with their toys and one shop with 200 or so brokers plays hardball and trades 10% of the market volume for a given day, well grab your ass and run cause the big pigs are heading for the trough and you are guy with the feed in his hand.
So don't tell me these guys shouldn't be taxed out the wazoo. They are living off you.
They aren't living off you if you:
ReplyDeleteA) don't trade
B) Don't try for short-term gains
But if you want to tax those who live off you, shouldn't finance firms like GS, etc pay huge rates? Instead, it seems we are gifting them money...
They are indeed living off me. These gains are taxed at 15% and the scorecard comes in quarterly or at year's end so positions can be adjusted to avoid taxes and push them.
ReplyDeleteMy rate is way over 15% so every dollar I pay helps make up for what they don't pay.