you're missing my point. i was saying that when the moves tended to be bigger (higher VIX), i'd get more average profit per share...thus making my relative commission costs lower and far less significant... and i do not want to trade eminis. it's like someone said in this really good thread that i can't seem to find right now -- in 1997, institutions would throw 100,000sh market orders at the specialist, because they didn't care if they blew 3% in execution costs when they expected to make 40% on the year. now, in 2002-2003 those same orders are being broken up, since a 3% execution cost could make the difference between being net profitable or not for the year... all i'm arguing is that now commission costs will make a much bigger difference in net profit at the end of the day with the daily ranges contracting more and more everyday...
read this thread.... http://www.elitetrader.com/vb/showthread.php?threadid=16614 and when you're finished, read it again....
And you attribute the above to clearing costs? After 7 years I'm finding it easier to make a decent living. Trades cost next to nothing. Then again I'm quick to take profits and try to enter high probability trades.
Well, according to what I've been reading in the trade rags, market making profits are abysmal for the very reasons many traders here are complaining. Very small spreads, low volitility, and though they NEVER say it, lackodumbmoney. That said, there's still money out there but it ain't easy.
Then there would be some more "little guys" in the market, more volume, more liquidity. But the SEC Pattern Day Trading Rule - Killed the participation of the little guy.