Online Stock Trading | Come back of the Small Investor…why you should be scared

Come back of the Small Investor…why you should be scared


Filed Under Market Commentary | 1 Comment

Etrade, Ameritrade, et al have reported record number of trades being processed.
Small investors have flocked to these internet brokers for the past quarter
and it doesn’t seem like they will be slowing any time soon. Why does this
matter? Small investors are notoriously known to picking tops in markets. They
feel good, but you shouldn’t. Internet brokers flourished in late 99-00 when
the small investor piled in at the market top!

This is another warning sign on top of the distribution days…Today doesn’t
look much different. We are headed lower, time to move money to the sidelines
and watch the small investor get whacked again. Now is a good time to pull up
short lists, there will be plenty of them.

Mkt Spec

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Comments

One Response to “Come back of the Small Investor…why you should be scared”

  1. Anonymous on March 10th, 2006 4:32 pm

    Look a the bloodletting in TRAD which earned .45 in 05 and should earn .60 in 06

    Elliot

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