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?
    :D
     
  4. daytraders live to pick off marketmakers. no marketmakers, nothing for daytraders to pick off.
     
  5. 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. 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

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

    'nuff said.
     
    #10     Aug 1, 2005