Why does everyone hate day trading?

Surely it stabilises the currency and leads to smoothing out of microfluctuations?

Yes, it does.

The problem is that enough people are (a) boneheads, (b) vocal, and (c) don't care about exposing their ignorance to the world.

Not everyone Theora, just the economic illiterates.

It's not all day traders. But so many have gotten so fat off day trading they couldn't really care less how badly they screw things up in world anymore. They want the quick fix of selling thier L's for cash not realizing that if they keep working towards making everyone inside the chat have a zero L income, people won't buy thier L's to conintue, they'll leave and look for greener pastures. As it is in world content sales are in the toilet and not one of them has offerred any kind of solution except to blindly thing ppl will max out thier credit cards for an L fix. Usually the only reason ppl buy L's is to buy land and take on masive building projects. It's very rare that someone will be say 50 L's short of this hair or that skins and go buy a thousand L's to get it. We do need economic solutions. However so far the only onesd the day traders have offerred have spelled slow death for the in world economy. The solutions need to be all around ones. When LL decided to supend basic stipends they needed to ad incentives to employers to pay workers in world and to require a minimum wage per hour or commission be paid. As it sits there is more unpaid work in SL, less paying work, and the buying power of the newbs is gone completely. You can say they should learn to make stuf and sell it but that leads us back full circle to no one buying content if they haven't the income to buy with.

Again, I do not hate day traders. I do however hate thier single minded, selfish, arrogant attitude that they are what makes the world go round and that destroying the economy for everyone in world is a good thing. Tunnel vision pure and simple and total ignorance of the big picture.

Ok this is just nuts, I have seen many L$ market buys at L$1000 and even lower so the average resident who wants to buy L$ typically uses a credit card and makes a market buy. Go look at the historical data, 95% of all purchases are for L$1000 or less.

Also there are traders (day or otherwise) that are content creators. I am a trader although not the Day trader variety. AND I have a successful business in world. It is not mutually exclusive.

The job of the day trader isn't to prop up the failing economic policy of Second Life. The goal of a day trader is to profit. They are True Capitalist...

"land and the economy" refers to SL Land/Econ, son. Put this in the "wild/crazy" forum, please.

They don't need to worry about the big picture. The free market allows rational self interest to work for the greater good.

Traders provide liquidity, and help stabilize the exchange. This is not their goal. It doesn't have to be. It's a side effect of their profit motives.

Or in your case leeching of th backside of the content creators Jamie..I mean RBD. Sorry easy mistake to make since you talk like you are the SAME PERSON.

Well maybe they should worry about who the he** will buy thier L's when the content creators are gone and no one's buying anything in SL anymore. What are they gona do just sell back and forth to one another? A lot of ppl arelady left when this garbage started. Removing basic stipends was a mistake. Not regulating employers in SL and making them pay pl is a mistake. Not making freebie reselling in SL a bannable ofense..yet anotehr mistake. Not regulating sling/tringo and other gaming and contests in SL yet another error. Wanna know the REAL prob with the SL economy? The same corruption that screws up the RL economy except in SL it is totally unregulated and even promoted.

The great thing about freedom, is that you are free to leave.

I don't know what the rest of your post has to do with trading.

Just like you and Mcgeeb...

Since when wee basic stipends "removed"?

Anyone who's ever had a basic stipend, still has a basic stipend. They didn't *remove* anything.

An stipend is no longer a feature of *new* basic accounts, but it was never *removed* from anyone else.

I swear, I really don't understand why people are *so* hung up on the free weekly $0.16 US dollar hand out. I mean come on, give me a break.

200,000 accounts getting $0.16 US per week is a total handout of $32,000.00 US per week. This comes to $1,668,571.00 US in handouts annually. Now, I wouldn't mind one bit if LL wanted to open up THEIR OWN purse strings and hand out $1,668,571.00 US to these "basic accounts" from their own pockets. But that's not what they're doing.

They're handing out $1,668,571.00 US that comes out of the pockets of THOSE WHO PROVIDE PRODUCTS AND SERVICES IN SECOND LIFE. Although the L$50 itself IS created out of thin air, that $0.16 US per week worth of value IS NOT. It is created on LindeX, via the hidden taxation of currency devaluation.

I think it is a good thing, for SL as a whole, that LL is moving away from the basic account stipends. Eventually (years from now maybe, but eventually) the number of people who still get it will hopefully be dwarfed by the number of people who don't. With any luck, a lot of them will quit too. Then those who provide products and services won't face such a steep tax on their work so that these "basic members" can "afford" to "buy" their work FOR FREE. Judging by recent activity on LindeX, this process may be starting already.

I think day trading actually helps the economy - of course depending what side of the fence you sit on.

My side is selling content.

Consider:

Someone wants to sell their L$ fast - in the past this means they put it at a price above the current, usually a few points over so they don't get undercut.

Now there is someone who will buy that instantly - so it never really hits the Lindex. The current price remains pretty much unchanged.. all parties are happy.

This instant sell doesn't slow anything down - after all you've accomodated someone SELLING their L$ not BUYING.

But, I hear you say, the trader has to sell their L$... well yes they do, but to make any profit from the trade they rely on the spread between what they buy at and what they sell at, and remember they are being undercut on the buying end too by other people.

That spread for the most part won't mean selling at the current value, but lower down the line - so that money that would have hit high, now hits low.

Real Example:

Someone at the time of writing this has 450,000 L$ on the buy side. One single buyer.

The current lindex price is 302, they are buying at 310.

They are buying $1,451.91 USD worth of L$.

Assume they are selling back on Lindex - because if they are selling to a third party site, that only helps the Lindex more.

if they sell it at 299, just below the market value, they get back $1,452.33 USD

They make less than a dollar - so obviously not worth the time it takes to buy and sell.. they get back next to nothing even at that volume.

Even at 290 the resell is $1,497.40.... thats a bit more - and more likely whats going on.

So - it takes what would have been a high sell, and either removes it from the Lindex (to a third party site) - or turns it into a low one on Lindex

I don't see how that is harmfull to the economy.

Spot on Siggy and that trader is doing exactly what you said which provides stability by selling well under the current rate while giving content providers a very resonable price considering where the exchange rate was just last week.