"If you're a short-term trader, it's very important, but for long-term investors probably not much," he said.

Indeed, it was only because there was a consensus among long-term investors that the short-term traders could feel confident enough to take large positions.

The short-term trader may sell the hour after buying to take a profit.

A third is short-term traders' propensity, just before exchange holidays, to cover, or buy back, the stocks they are short.

It's easy to see why short-term traders don't like these fees, he said, but "if you're a long-term investor, they are your best friend."

Most of the action yesterday, analysts said, was generated by short-term traders, who were active in the options and futures markets.

And it was caused, he said, when short-term traders bought many of the most popular technology names in anticipation of their earnings reports last week.

The catch for short-term traders is that the law sets a minimum 60-day holding period for the investors to get the dividend break.

Even those who professed to be long-term fundamental investors turned out to be short-term traders, he said.

Like many value investors, he is a more of a portfolio investor than a short-term trader.