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Demystifying the stock market.

I was moved to respond after reading the article "Living the Millionaire Life" by Lynnette Khalfani in the December 2006 issue. I feel that the stock market is a largely untapped medium for African American wealth building, and I was pleased that Ms. Khalfani focused on this vehicle.

However, her comments regarding short-term trading are not entirely accurate. A consistent, well-disciplined, short-term trading plan can provide above-average returns. If executed well, the growth in a portfolio can significantly outpace the cost of commissions and justify any extra tax burden.

African Americans are often bed the idea that trading is a risky, "cowboy" way of investing that leads nowhere, instead of taking a true, dispassionate look at the risk/reward ratio. In fact, Wall Street firms have demonstrated for decades that consistent short-term trading can lead to large revenues and profits.

Too often our people have been the last to bind out about novel ways of building wealth. It would be great to feature short-term traders who can shed some light on what it is they do and how they do it.

Kurt James

Ithaca, NY

kurtjames82@yahoo.com
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Title Annotation:Letters
Author:James, Kurt
Publication:Black Enterprise
Article Type:Letter to the editor
Date:Apr 1, 2007
Words:188
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