very interesting. I heard that the specialist on NYSE is being more and more automated as well. You're saying that pair trading is the answer (or at least a good answer) to the future market changes/exchange changes that's ahead? How long are these changes going to start happening?
No, I do not endorse pair trading. The changes are already happening. The ship has sailed. Equity trading is all done by autobots now. Human trading in equities is nearing an end, at least for intra-day.
Yeah I hear that much of the volume for institutions is going through block trades in shadow books... such as pipeline, NYFIX, lava, etc... they are seeing it as an alternative to the specialist.
I hate when you talk negatively about tape reading. It makes me want to quit my firm and get a "normal" job.
autobots run on scripts and conditional statements don't they? I would imagine a real successful equity trader is better than a robot...I guess most of that advantage comes from knowing how to read the tape well...why is pair trading being looked at as an alternative besides being hedged in the market? Spxdes, can you elaborate on market shorts and how chasers happen? so instead of giving a large order to the specialist to work, an institutional buyer/seller would just program a blackbox and go?
No freaking way does an a real trader beat an autobot. The best autobots I have seen can do 5k transactions a second. And in many cases they are trading with internalized order flow. No trader in the world can touch that. Pair trading is not being looked at as an alternative. It's just a totally different style. It's getting pushed for two reasons. One, it generates a lot of commissions for the firm's owners. And two, it reduces the general market risk for the firm.
So Maverick, in your opinion, what's the best weapon the daytrader now has? Charts? Is it even worthwhile to daytrade at all with the way automated trading is taking over? For a beginner trader, would you suggest swing trading over day trading? What are your thoughts?
fast, A market short is what it is. Someone is trying to short the stock and has to follow the uptick rule. They are easy to spot. I don't know why this happens or who places these orders and I don't care. It works, thats all that matters. One thing to remember, there are no market shorts in reg SHO stocks because there is no uptick rule.
so if you are trading listed now, how long do you think we are until we are jobless? when you are talking about autobots, are you talking about institutions using them or daytraders or NYSE specialists?
Without bullets, etc...doesn't most day traders, etc... have to follow the uptick rule? what are the signs that a market order is going to take place or is taking place? if the bids are repeatedly printing lower and lower?