John McLaughlin, Stock Trader-StockCoach

Restore the uptick rule and restore confidence, Charles Schwab says. Others beg to differ.

OK, coming in here a little late.

Taking issue with Charles Schwab:

Let's be clear about a few observations this day trader will make about your biased, short-sighted commentary, Charles.

First, the markets are replete with traders who I refer to as losers (likely, as many as 98% of all traders worldwide, perhaps yourself included, by the tone and contend of your article in this "Up Tick" discourse, are losers. Losers range from the obvious, those who blow out several accounts, those who are consistently unprofitable, and those traders who play it safe with break-even results, and those who earn less than $100,000/year trading whatever.

Of those losing traders, in particular, those you call investors, no matter the financial instrument traded, they are blind to the fact that the trading game has changed, dramatically, continuously, and continuously - forever.

Anyone who persists in trading old-school does so, directly or indirectly (brokers), at their detriment - period.

I'm writing this response for readers, investors and otherwise, to consider that my free and certainly biased advice, just like Mr. Schwab's biased advice, is to help investors and traders alike avoid the next capital stripping catastrophe and to take the attention away from the short tick boogieman being created by those with a racket to keep trading status quo - for whatever self-serving purposes.

The investors you speak about, including all those who entrust old-school traders with their retirement capital have been blind-sided by all the incompetent brokers and fund managers, who insist on trading, head in the sand, to their client investor's huge losses and their fees grabbing advantage - and then go broke or belly-up. Investors entrust their money with incompetents who care less client gains or losses, focused all about themselves with their guaranteed fee generated income.

Need I mention that their investor clients, existing and future retirees, have been stripped of nearly 50% of their funds during the past few months by these jerks - not at all by some made-up story about traders going short in mass (lacking an uptick rule), but because they persist in trading with an old-shool approach that has been dead ended for years?

Why do I call them jerks with such disdain? Because, after years of piss-poor performance like this, beginning with the tech bubble crash, they continue, knowingly, to suck the unsuspecting into their obsolete buy and hold game, getting clients trapped in another bubble and another financial crash, and yes cutting any gains over the years to zero and then some.

So, lighten up, no, wake up - stop accusing the winning shorts of manipulations, when the real mess investors find themselves in (in dreadful financial and emotional shape) was sourced with incompetent, wrong-game advisors who persist in getting the little guy killed, never, repeat never taking responsibility for the losses, blaming the markets and this crap about the short tick rule for their foolhardy short comings (pun intended).

Second, the winners are wide awake to the new-school trading game - it's purpose, the ever changing rules, strategies, and tactics for winning. And the point, in the first place, for trading is - winning, like world-class tennis players, not the money. Big money winners, those who control the major market and stock price movements, are hell bent on winning, endlessly, never giving up years of gains to anyone, like the jerks we blindly entrust with our money.

How do the winners maintain their advantage?

The answer, for some is surprisingly simple, software.

Here's how the new game works. Financial scientist, hired by big money traders, design software, sophisticated, ever innovated software that is used to take out, kill, all the old-school traders, the losers I have been talking about. And, Charles, I think you know exactly what I'm talking about but have yet to learn how to implement, on your own, because you have allowed yourself to be distracted by your own distorted views you are expelling about trading that your clients and customers are upset with you about.

About some of the other comments you make, Charles, using the old "for the sake of our children and grandchildren" nonsense makes you sound more like a politician seeing votes than an objective observer. Using words like legitimate, manipulative, professional to describe "short" traders, as if there was such a trader, are appropriate - I agree, but please give up trying to assume there is such a person as an "short seller", and forget about singling out "professional short sellers" as though there were unique.

I can't imagine your being stupid enough to next attack professional "long buyers", as if they existed somewhere in some dark place, like your attack on "short sellers" for their "manipulative" activity. Let's get this straight - traders go both ways when they feel it's appropriate to win and make money. Stop making stories or characterizations up otherwise (respectfully suggesting, Charles - don't get defensive).

See, when the game is one way, as you insist, you lose your freedom to trade as you like, when you like, a gazillion shares if you like - in either direction. You'd be great at a flea market or yard sale with your espousals - you'd get kicked off the lot or the driveway.

Everything in life has it's balance, no matter the extremes from balance - just like trading stocks or any other tradable. By removing trading options, as you suggest, by reenacting an obsolete short tick rule, you end up screwing around with trader freedom, and you end up a meddler with the natural acts, executions while trading.

Charles, stand aside - let the markets do their work - you have absolutely zero power to do otherwise. You and your like, persisting in sucking investors into the old game you fail to let go of, for what you must and will eventually adopt for survival, is a disservice.

So go ahead, when you have nothing to do during the next bubble - try to get some law passed to prevent "over exuberant, unnatural, manipulative, unsmooth, excessive speed price pops of "long buying". Fat chance of that either. Whom are you kidding?

The real time issue and question that comes to mind is: why millions of people have lost their hard-earned wealth at the hands of the old-school trading incompetents? This issue, as you have disguised, is not about those who skillfully short stocks and skillfully go long stocks. The issue is all about trusting others with your moola, and how long we are willing to put up with piss poor performance results.

So, the other side of the issue and the another question is - why do the little guys put up with that crap, over and over and over again and when will they stop. You see, Charles, if your primary clients on the Internet are misguided investors, you are naturally and financially prone to keep them in the dark about certain trading realities - don't you agree? Stop to think about that for a moment. In addition, I'm thinking about your business and where you make most of you money - in that same moment.

And, by making your point to your advantage, you must create a bad guy - short sellers. This may have worked in the past; I suspect no longer, as others will likely wake up to what you are really up to in your article with my response.

Blaming the "short seller" for the financial crises investors suffered through lately is like blaming drivers for all auto accidents because their steering wheels are designed to go both directions - then addressing and blaming only left turning, for instance. Stretching your claim about short selling to driving autos further would be tantamount to precluding left turns, lacking a note from your mother (like your insistence on returning to the short tick rule). Give it up, start serving your customers objectively with compassion not trickery or they will for sure exit you services in droves.

Charles, I suggest you stick to writing about financial history, no matter how distorted, as it's entertaining, leaving the trading and commentary about trading to those who know better - otherwise your successful days in business will be numbered (think about the Lincoln quote about "fooling people").

No offense and don't take my words too seriously as I know you won't - it's just that I'm not willing to allow you and any other professionals to go on pulling the wool over the eyes of innocent investors and those (SEC) who can make silly, meddling new rules to change the game for no good reason other than yours, without my presenting a more realistic perspective of what's really going on these days.

Just one trader's view and commentary...

John McLaughlin, Stock Trader - Consultant / Coach
www.DayTradersWin.com
949-338-1730

Suddenly, Everyone's a Day Trader

Correction:

DayTradersWin.com

Suddenly, Everyone's a Day Trader

Just a couple of thoughts about the changing day trader perspective:

1. CNBC article - They're Back: Day Traders Thrive in Volatile Market:

www.cnbc.com/id/281584...

2. I carefully read the above commentary and suggest it may not be the news, the action at the close, the trend, buying after the high, technical analysis, or volatility that a day trader needs to be most concerned about to be a consistently profitable winner.

Give the following some thought:

1. Trading with a consultant / coach - give up trading on your own.

The consultant can get you on a winning track.

The coach facilitates learning the day trading game, to regain confidence, build competence, and produce the results you aspire.

2. Trade in a winner's day trading room with your coach at the ready to provide support and guidance to quickly learn to win.

Like world-class tennis players with their coaches, it's all about winning, not the money (purse, sponsorships), while playing the game.

3. Trade a game (system) that's at least winnable.

The game has changed (the purpose for trading, the rules, strategy, tactics, when to trade, and when not to trade, and so on) in the past few years, completely, and forever.

If you persist in trading old-school you will soon find, if you haven't already, that you are on a dead-end street to nowhere with regard to profitability.

The old game is interesting, keeps you busy, and is pervasive throughout just about all the Internet offerings, but it's now obsolete. You need proof? Check your balance sheet.

The day trading game has changed, so have we, and so can you.

Good luck with your day trading,

John McLaughlin, Stock Trader - Consultant / Coach / Mentor

www.DayTradersWin.comj

949-218-4114