Is there any benefit from the specialists vs. computerized training? Every year since I have been involved in the stock market, there has always been some kind of specialist scandal. When I trade the NYSE, I cant help but thinking that some type of specialist is sitting there looking at my order or sell and making a plan to screw me over or maybe he is in with someone else or for himself trading in/out of his own account, etc. When things are done strictly by computer, I have this sense that maybe this will be more of a fair fight...
if it's done 100% by computer what's the difference between nyse and naz? many on here made a living with price improvement on nyse. now without specialists thats gone.
I believe he is speaking of order matching via computer program, such as electronically traded futures for example. Takes the human out of the equation all together. Naz has market makers behind screens, which in my opinion, isn't much better than the specialist model. They can still screw you. Trade ES (spoo futures), and there is absolutely no one to screw you. It's possible your broker will crash, or just mess the order up somehow with a crappy platform, but that is about it. Specialists are archaic as hell. So are market makers. Its just an old boys network trying to protect jobs.
no..specialists must stay...yeaaahhhh I agree they ' re not angels...but making money with them much more easier ...NO SPECIALISTS --NO PATTERNS...guys ...NO PATTERNS--NO MONEY..it will be like casino..
Ahh but there is little barrier to entry to becoming a MM, as opposed to the near impossible one to becoming a specialist. They have nowhere near the power they once had, in fact, it's pretty competitive among the MMs. Also, a lot of the big name MMs have been replaced with black boxes (especially at Goldman). Tapereading NYSE has been losing its edge for years. Some stocks have crossed the point where the edge was not worth the handicap of the specialist screw. NYSE is not Naz yet. It's gonna be Hybrid for a while, which will take away the good parts of the old NYSE but leave the bad ones. Enjoy.
Nasdaq How do you think you could do if you were given one or two stocks to trade...no uptick rule....and you could position 5 million shares any way you wanted ? NYSE How do you think you could do if you were given the same along with a heads up on the order flow...? New World The worlds markets are very fragmented...and need to be ...will be...and are in the process of consolidating...the end result being a true electronic marketplace....When ? A good guess is within 7 to 12 years... maybe sooner....depends on the other countries legal/political issues...The US is on go....It is now the Nasdaq vs the NYSE....gotta collect the means to do the volume....transaction prices are not going to reverse from here... Already you see part of the reasoning in the recent margin rule changes....
i used to scalp the nyse before i became a gap trader, and the specialists had a great role imo -- you could get to know them, and look for patterns. witha lot of work and time, you could trade the same stock quite well.
I'm sick and tired of reading about "traders"... ** Manipulating ** the stock market... Based on reading the way the Specialist is ** manipulating ** the market. You should ALL be in jail... And then come out... and do some honest work for at least one day in your life. It will be heaven for the Quants... When the Specialists... and their sleaze... and ** their ilk on ET ** are long gone.