I can attest to the fact that size does work in a momentum style market. Schonfeld was at its prime during the bull market and % wise created more millionairs than any on this site can imagine. Schonfeld has re-invented itself, more towards the retail end of things. It is no longer the same PROP shop, giving out millions of capital to traders with nothing coming to the tabel from them. Also, momentum is no longer the game. The fact that the OTC volume is created by "daytraders" tells u something, they are undercapitalized to trade the higher price stocks, The Nazdaq has very few high flyers to trade. When schonfeld was at its prime, we were not trading OTC stocks under 50 bucks, hell, i remember my mentor only trading expensive stocks because they were more likely to move the points. Yahoo alone made millions for many. as far as daytrading is back....maby for some, but the ones I know that made money at schofeld, no longer "daytrade", intraday and trade over a little longer time frame, some moved to start their own firms, hedgefunds and some kicking back and relaxing for the rest of their lives, playing online poker.
As to the long/short issue, ETG was monitoring that very thing way back in 1995. In fact to be doubly safe, regarding whatever rule it is/was that this practice is/was trying to address, there was a movement that prevented different traders from trading same stock. At that time I left and went to Schonfeld in Chicago so I never really knew what happened. DKS
When where you there neisk? I was there from 98 till 2000, mid 2000, left to trade options with a small group...now, trading options still but formed my own LLC with another former Schonfeld trader, well he was more or less schonfeld, but was the Dimitri's right hand man. Anyways, best of luck to you in trading.
I believe INET, for one, pays a .002 cent per share rebate for OTC BB stocks that are in its system. Certain market makers also pay for flow. Depending on the stock there may or may not be a lot of two-sided ECN liquidity. As you can see, the volume in some of these things is enormous: http://www.otcbb.com/dynamic/tradingdata/daily/activebyshare.htm It's a shame the OTC BB execution system isn't fully automated like SuperMontage. People might feel a lot more confident about trading BB stocks if they could exit a big position via auto-ex instead of calling a broker (although some brokers do allow auto-ex against their quotes up to a certain limit). - Rob