An interesting article by Traders Magazine: http://www.tradersmagazine.com/magazine2.cfm?id=1&aid=1818&year=2004&search=30% Among its more notable points... * Daytraders are largely responsible for OTC Bulletin board volume skyrocketing. It's pretty incredible, but OTC BB volume is up 350% from last year. About 2.9 billion shares per day now trade on the bulletin board--far more than either the NYSE or NASDAQ. * The article cites Schonfeld Group as leading the daytrading rebirth by trading close to 140 million to 150 million shares daily, of which approximately 20% is retail volume and 80% "proprietary." - Rob
Hmmm from what I heard and can derive, the bear market was pretty good for trading. Bullets made a lot of traders some really good money. Of course nothing compares to the height of the bubble. Interesting comments by Schonfeld. Lot of PR work by them in that article.
the ONLY multi millionaires i have ever met created by prop day trading are schonfeld traders. that is not to say there are not any from other firms, but i guess it means SIZE WORKS, and schony has / had a super system, training. best, surfer
I see that the trading volume in some of the OTC BB stocks are over 100 million everyday, can someone tell me how money is made in these stocks... for example.. are there ECN rebates available to be made like OTC NASDAQ stocks??? Coz if there are, it would be too easy....
to surfer's point - yes i used to sit in the room with at least one multi-millionaire who made his money right before my very eyes. this was is 95-97...... steve schonfeld himself is one of the smartest guys out there when it comes to how to make money from and through short-term trading. i am though curious about what really happened with their rumored office closings and it is also noteworthy that it apparently happened right near the end of the bear cycle.
I really did not want to post this I thought I kinda implied it in my first post. From what I know and I'm trying to be neutral on the issue, Schoney is in some serious crap right now. Everyone knows they have been cutting traders for about 2 years. But then they also recently enacted some new rule for the firm where if one trader is short and the other is long, the only way the long trader can close out his position is by selling short. Some real shady stuff, makes no sense why they would do that to their own traders. And this came from a reliable source that would not say this unless it had true basis. Plus, there is always the other rumors. Basically, I would not even look at Schoney now if I were to shop around for a new firm. Every firm had multi-millionaires at one point. It's just who actually did not waste their money and kept on making it.