Essay - The Phenomenon of 'Online Trading' Is One That Has Become...

The phenomenon of "online trading" is one that has become of increasing interest to econom*****ts, ***** students of business, and to the individual investor over the past several years. Before the economic boom ***** the 1990's, the phrase 'day trader' would be virtually incomprehensible to an analyst's ears. Then, 'day ***** became a catch***** for someone who was determined to succeed in making a ridiculous amount of money, merely by manipulating his or her Internet account. Now ***** traders' have been blamed for almost everything, from the fall of the NASDAQ to ***** ***** of the economy as a whole.

This is why ***** title of The New York Times article ***** April 9, 2001, is so compelling. It states "Betting the Farm that Online Trading Isn't Dead." The article states *****, despite the common ***** w*****dom that ***** idea of a d*****y trader who can make millions simply by moni*****ring the market is dead, one firm is still holding f*****t to this ideal. The article acknowledges even in its first ***** lines ***** "most online discount brokerage firms ***** been running for the exits, desperately diversifying away from their slumping core trading businesses." It describes online trading as in a "virtual free fall."

However, although the article makes substantial points as ***** the demise of online *****, it also states that a company known ***** "Ameritrade" has "made a contr*****rian bet." On Sunday night the company agreed to pay $1.29 billion in stock for its rival Datek Online Holdings Corporation, "effectively doubling" a business model ***** "m*****ny *****s think is, well, so *****." In o*****r w*****ds, it acquired a corpor*****tion that is totally dependent on *****line trading. Ameritade thus is going against the current conventional business wisdom ***** online trading is dead, long live more ***** ***** options. Ameritrade's actions are in contrast to those of ***** once-equally popular E*Trade Group. The latter company "has been building a more traditional banking business" since the stock market's decline, with the interest of *****fering "mortgages and o*****r services to offset slowing demand for ***** trading." Instead "***** planned acquisition seemingly represents a r***** effo*****t to create a bigger 'pure' ***** operation."

Ameritrade's chief executive, Joseph Moglia, is optimistic that the NASDAQ day-trading boom may come back.

He believes that the current economic recovery will soon generate interest in this facet of the economy and he wishes for his company to be at the forefront ***** ***** return to instant online trading.

The ***** of Ameritrade showed a modest incre*****se of twelve cents, up to 6.42, as a result of the announcement ***** this merger. But is this action wise? Will Ameri*****s go back to the frenzied day ***** of the '90's? Conventional economic wisdom says no; but then again conventional wisdom said that the technological ***** would never end. Perhaps in the current *****fuddled state ***** the economy, going against conventional ***** is the only good advice.

Works Cited

Sorkin, Andrew Ross. "Betting the Farm ***** Online ***** Isn't Dead."

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