We Should All Be Grateful To Day Traders

Day traders play an essential and often uppreciated role in our economy. And
do not most things and events in life come back to the subject of "money ".
Day traders allow the stock market to put a price on the companies that are
a constant, vital part of our lives. We know these companies. As they touch
our lives in many ways. They build our homes, produce our food, make our
clothing and build our cars. They broadcast our TV show we watch and pipe
the internet as well as telephone and cable service into our homes. They
provide jobs for our friends and families. As an integral part of our
economic cycle, these are companies that need capital to develop the
products that will improve that will improve the quality of our lives in the
years to come.

The stock market allows day traders to put a price on these companies every
second of the trading day. By actively trading, day traders provide the
liquidity that is the cornerstone of our markets. Without liquidity,
companies would not be able to raise the money they need to produce the
goods and provide the services that we demand. Without liquidity, investors
would not be able to commit capital. It is this capital that allows these
companies to grow and prosper in our economy. And it is the day trader who
plays a pivotal role in creating the markets that allow our economy to
flourish.

Day traders add immense depth and liquidity to the stock markets. Liquidity
enables any individual, institution or financial institution to rapidly sell
its stock for fair value and that is a direct consequence of the large
relative numbers of day traders providing active financial markets.
Liquidity does not just mean a rapid turnover: it means a rapid turnover at
fair value. It could be said that anyone could sell a Rolex watch on the
street for $ 25 dollars, but this would not constitute or represent a fair
price for the product and therefore could not be said to represent fair and
present value. Thus to blow out product at prices below fair and reasonable
value does not constitute true and trustworthy liquidity. Other products of
wealth such as Real Estate or large expensive boasts may sits for many
expensive years before buyers appear on the market that are willing to pay
fair value for the product to be liquidated into cash... On the other hand,
the stock market allows trader to place a value on capital investments and
more importantly affords investors and traders the opportunity to enter or
exit their equity positions efficiently in an effective manner. The economic
functions of the markets, coupled with unparalleled liquidity and a myriad
of constantly arising new opportunities, communication tools and ongoing
technological advances make the stock market the ultimate way to speculate
and as well provide a value function of the value of assets as well as a
quick means of liquidation and accumulation of vital capital

About The Author: Amy F. Goodmann Senior Financial Analyst Forex Forex Forex
Forex frxforex@yahoo.com http://www.substantialincomes.com
http://www.listmymanitobacottageonline.com
http://www.forexforexforexforex.com