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"New CIT (Commodity Index Traders) analysis and custom charts in Feb 2007!"

The Trader


In today's high tech world, everybody is a stock trader. It hardly matters what profession you come from, everyone is playing the stock market. A few years ago, many individuals didn't know anything about investing in stocks, nor did they know anything about the companies whose stock they have been trading. 

Our research shows a large segment of today's stock market speculators are short term. When we say short term, we show an average holding time for these 'short term' traders to be a little over 62 days. The volume in the stock market over the past few years indicates that stocks are changing hands at a rapid pace and apparently back and forth. This form of investing is not the traditional buy and hold methodology, but more closely resembles characteristics similar to derivative speculating, an art which has historically been left to the futures traders. 

Stock options contribute to the new short-term way of thinking and appear to have transformed the way smaller investors approach the stock market. Sure enough, in our research we have found a distinction between two groups of investors, the older generation and the new. The older generations stick to the buy and hold methodology, while the younger investors are aggressively jumping in and out of stocks and using the derivative instruments to speculate on the short-term direction of individual stocks. As you might have guessed, the younger generation has not done as well as the older generation who consistently buys and holds. In fact, contrary to what these younger investors might imply, they have not faired that well in today's stock market. The fact is, most short-term stock market speculators have lost money trading and are in the red. 

Are you short term or longer term? Making money consistently by trading stocks on a short-term basis is impossible according to our studies. There are simply far too many unknown variables in the short term trading that cannot be predicted. So the question is... Can you make money CONSISTENTLY investing on a short-term basis? The answer is yes, but not by trading individual stocks. Historical data indicates it is possible using another form of investment vehicles. The commodity markets. The commodity futures markets exhibit repeating patterns and an underlying order, which can be tracked and traded successfully on a very short-term basis. In commodities, it does not matter if prices are going up or down because you can profit from both sides! The commodity markets offer an opportunity for short-term traders to consistently profit on relatively short-term fluctuations.

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