Great post. Personally (and some might think this is crazy) I think things have also come so far that automated systems responsible for driving a lot of volatility have essentially 'mechanized' price movement over time (using a combination of acceleration and deceleration) in such a way that makes it more psychologically difficult to do the right thing (such as buy the bottom, sell the top) and instead makes it mentally easier, for example, to buy the top and sell the bottom. This was probably always an organic dynamic in the markets, but a formula for it might even be hard coded now.
I don’t feel sad or regretful about it ending. Sure it was stressful and a struggle when the edge disappeared; I didn’t foresee that it could happen so quickly. But the edge was mostly a gimmick of technology. As more people in the office learned about it, the profits dissipated. The game itself is generally the same now as it was then, taking liquidity ahead of others who need it. What’s different is the method of detecting smart money activity. It is no longer so blatant as watching GSCO, MSCO, MLCO, INCA, etc. on Level II and figuring out who is a net buyer or a net seller.
Daytrading for 14 years, never had a real job. Check out my blog at churningandburning.com — my latest post (the 10 traders you meet in prop) is a banger.
All this s... with charts, this was mistake. Trading today is data, OF, FP, Data level 2, Priceleather.
I honestly think the circlejerk of every trader wanting a turbo sports car has gone so far, even people who dont really want one think they should want one. It would be a massive waste to drive a lambo in NYC anyway
All in jest but that was an amazing time. I never had illusions it was longterm though. I remember warning one person in particular at a dinner party that whenever it seems like there is 'free money', bubbles burst. He understood that but also said he had Cisco stock, which had "14 straight profitable quarters", or something like that. A couple months later the market began it's downturn.