Could Daytraders ever replace market makers?

Discussion in 'Trading' started by The Kin, Aug 1, 2005.

  1. I donno why the SEC tries to make it so hard for Daytraders - we provide liquidity! I wonder how the market would if daytraders were given the same powers and privileges as market makers however able to keep the current flexibility. (no forced bids/asks)
  2. no. they don't understand markets from a market-making perspective -- they're more like market predators. no commitment to market integrity or depth -- only to picking it off.
  3. I'm confused. Are you referring to day traders or market makers?
  4. daytraders live to pick off marketmakers. no marketmakers, nothing for daytraders to pick off.
  5. gnome


    Hard to imagine that a group which almost always wins (Market Makers) could be replaced with a group which almost always loses (Day Traders).
  6. Its funny to me, daytraders think they are providing a service, when they are just clogging up the market. Institutions on both sides would really like to see them gone. Do they really serve a purpose?
  7. gnome


    Who among us in the market serves *any* purpose. Daytraders just add to the noise... which without them, there would still be plenty.
  8. kubilai


    The way I see it, people making money contribute to the efficiency of the markets, people losing money pay the winners to keep it up. So yes, we all serve a purpose :)
  9. gnome


    What you discribe is "function"... which is different from purpose.
  10. :D :D :D

    'nuff said.
    #10     Aug 1, 2005