I will agree that Schoni is blindly standing by the "Balls out" traders who have not changed their style. Of course this effected the firm to a point. Like I said, i believe very few Schoni traders could actually trade in my office. Many just kept getting wacked, and not learning. This in return effected the rest of us. But forcing one to trade four trades everyday is not smart either. I can't answer any of the questions about why, how or what the other traders do at schoni. Hell i could care less. I'm just happy I cut my loss and jumped ship. I felt it was comming so it was really no big deal. Of course I do expect my kicker. Even though their were a lot of "haz been traders" at schoni, Steve is a honorable man and will try to pay out the kickers if it dosent kill his bottom line. And that is smart business. Cutting back the firm is smart business. Besides, its time for me to enter the next phase....and for those schoni traders that can truly trade.....it could be a blessing in disguise.
For anyone that thinks there is no momentum these days is obviously trading the wrong stocks. I look at stocks like BRCD,NVDA,QLGC and a few other Nasdaq ones that on a daily basis move a point or 2 during a rally or selloff.A $23 stock like BRCD moving a point is a huge move given its price. And as far as holding positions overnight,I think that's asking for trouble. Too much risk to justify the reward potential. There are plenty of profitable intraday moves to be had.I know people consistently making $5,000-$10,000 per day,myself included, trading 2500-5000 share positions in some of the above mentioned Nasdaq stocks.As far penny spreads go,I personally love it. Instead of losing a minimum of an eighth,you can lose a penny minimum.Of course,penny spreads have pretty much made scalping obsolete,and by this i mean traders who would trade low priced listed stocks by buying at 4 and selling at 4 1/8,although this to me was not real trading.Intraday momentum trading is where it's at right now,going for at a minimum .20 or .30 a share. The idea that some people have a target of only .03 or .05 a share profit is nauseating.Trading a million shares a day,racking up huge commissions, and targeting small profits is a fast path to a heart attack.
Many people believe daytrading was invented in the '90s. Daytrading has been around forever and it will be around as long as there is a market. Sure it was easier with the big swings in the late '90s. Those who can trade and stay in the game in all types of markets are the true traders! The late 90s was the exeption not the rule. In fact I am glad that so many people are whining about daytrading and saying it is dead. Lets get rid of all the weak sisters and separate the men from the boys. Furthermore, there are alot of traders that make a great living grinding it out chipping away and being consistent. You may not hear about them because they dont want you to know about them.
Yes, there was no uptick rule, no there were no pennies, etc. during Jesse L's time, but he wasn't scalping. He gave that up in the bucket shops. He was a diretional trader, a speculator, more interested in the overall trend. He would be unconcerned about pennies, knowing the stock would eventually seek its appropriate level. All these scalpers and daytraders you refer to would be lost in the bucket shops of the day. Even if Morgan et al were manipulationg stocks (maybe) an astute trader would notice this by reading the tape and would participate. But this is a Schoni thread.... Livermore knew when to cut his losses and regroup for another campaign. Seems as if Schoni is doing just that doesn't it?
I dont thing there is much momentum.Sure you'll get these short squezz two days up. Its a range bond market. I trade tech, and there is very few days of follow through. The first hour is where the trades are. I cant say that there is much momentum. Im sure there are a few stocks that move more than a dime. But i wouldnt call the moves of the last two days momentum. I would call it sellers steping away and some dumb money comming in. The only momentum stock that i have seen is BAC. Look at its daily, that has shown strength through out. NOt techs, not, cycles, not retailers, not oils, not drugs. The only momentum group that has showed more strenght has been the BKX, banks.
I agree with your post 100%. Day trading will be here until they outlaw it. Some have the talent to survive the less opportunistic times and some will fade away.... Some are waiting for better times not realizing that these are good times. They keep on focusing on what was not what is...
Well the play worked goldenarm. and it was based on futures strenght and Indices strength. Most every thing closed on or broke highs yesterday, that is strenght. Today we are breaking higher....sure you take off some of the profits. And alot is based on patterns. Besides, level II has more fades on it than people have assholes. LOL....its not that im not making money, im not makeing as much.....
Sure, the game of daytrading will be around. However, prop houses will not, but chop shops will. Casinos, bring ur money, trade mass tickets and try and win the lotto. There are alot of those. 3000 desk fee, 2cent commisions, force to trade above a minimum for bundled commissions, lowering your rate to 1.5. You catch a good run, you gross a few grand, but net only a few hundred because the coin went to mostly commisions...hummm
There are plenty of prop firms out there that charge low tickets. Traded at one charging .0050 per share, but the trader had to scalp! One way trading....few were net.....even after they were all zeroed out! (they did charge fees for lic...quotes...insurance..etc