Trust me, you don't sound like a "smart ass". You do sound more like a dumb ass. Look at Schonfeld for example. They pay on gross, and have let go of something like 80 per cent of their traders. So with their solid technology, certainly better than average training, and really NO commission, how is it that 80% of their traders were losing money? Guess they all were taking "stupid risks". Or maybe trading isn't as easy for everyone as it is for you. SPC
It's different for everyone and depends on your style of trading. If you are a scalper doing 2 million shares a month, that 2/10th's of a cent you save on commish adds 50 grand to your bottom line at the end of the year. If you are a more methodical trader who takes a dozen trades a week, then commissions are a non-issue. And some people with extremely low rates can leverage that into a profitable strategy where their rates are their edge. They can make money somewhere that a penny a share trader can't. Your argument makes sense for some people and is laughable to others.
"All the over-publicized strategies (opening only orders, pairs trading, blah, blah, blah) that prop owners preach are doomed to fail for the masses. Ignore everything I say if you want, but listen to this: THERE IS NO PUBLICLY PROMOTED TRADING STRATEGY THAT WILL EVER SUCCEED LONG-TERM FOR MORE THAN 1 OUT OF 1000 PROFESSIONAL TRADERS. NOT ONE!!!!!!!!! Your best edge is the one that you create but don't reveal. Your second best edge is the technology to implement that strategy better than your competitors." dont be so sure that there arent tools out there that do well for traders over the long term. automated systems work well if you know how to use them. check out www.capitalberkeley.com - we've made money over the last few years consistently, without professing that "you'll make millions" Pete
Trader Pete...did you set this stage for introduction of this product by starting this thread? Creditability is everything, and a little honesty here would go a long ways to cut through all the staged events that occur (politically nice way of saying it)...
absolutely not! if you noticed (after i counted) there were 12 posts on this thread before i even added my $.02, so NO, none of this was staged by me. i just got the vibe to mention CB.com and that there are people who do well for their clients. i mentioned this after talking to a potential client for some time that grilled me on the cost of leasing a system vs. actual results and what he valued as "worth". also got into a big discussion about commissions with him, etc. and was just trying to say that there are a lot of people and firms out there that try to make money (i think we all do) but the ones that take care of what their clients need most are the ones that usually succeed over the long term. the only way that i have been fortunate enough to make a living trading and leasing my systems is that we are honest and put our clients interest first. this is what credibility is all about. take care... Pete
IM JUST SHOCKED THAT THERE HASN'T BEEN A DOVER GUY COME ON AND SAY " PM ME AND I'LL GIVE YOU THE INFO' ...Great thread though and I have talked to many a trader myself that are looking for so much in commissions and do not pay attention to the trading or they trading system...I've been amazed at how many guys go into a trade of 10,000 shares of stock demanding a 10.00 or 15.00 cap....My philosophy is that anytime you buy 10k shares of anything, 5.00 on either side should not be the deciding factor of your profitability
Im amazed at RealTick though.....they never entered the price war, they never got bogged down like some of these toher companies and it seems to have paid off...Im not saying they don't have their problems but from a marketing perspective, they never worried about redcung dramtically their rates and I think it's paid off...they seem to be a cut above and a lot more sound financially then a lot of these other firms.
You're blinder than a cave fish. Look up the definition of an "edge." Does it read "Something that everyone else has?" Of course not. An edge is something that gives you a distinct advantage over the majority. Low rates are as much of an edge as is a T1 line. Everyone's got them for Christ's sake. You can scalp all day for two cents, and make a good living with a 1/2 cent commission .....UNTIL that strategy stops working!! These people that see their future as micro-scalpers are the kings of the fools. It's a strategy that will be automated out of existance faster than you can say, "why ain't I making money at 1/4 cent per share?" I don't submit that low rates are unimportant. I'm just trying to crack through the 2 inch titanium plating in your skull to help you realize that your edges are your intellectual property......and the non-publicized strategies you implement.....and your platform for executing those strategies. If I can't reach you on that point, so be it.
RealTick definitely understood that you can't give a "deal" to one big customer without eventually having to give it to everyone. In other words, unlike most firms, they operate like a real company. Say what you want about them, they run a solid business.