This is a copy of a post i made on another thread. I thought it warranted its own thread. I'm wondering if the rule changes allowing more than 1000 share NX orders will encourage the big boys to start trading the 5k and 10k order sizes again. I'm thinking that the black box automated trading systems will be enticed into trading size as well. For each position they open, they will have to close out later in the day, some at inoppurtune times giving us PROFITS!! I could envision day trader open interest increasing many fold. The problem for day trading NYSE as i see it, is that because volatility is 50% of where it needs to be for anyone but the "MASTER" trader to make money, "day trader open interest" has dropped to near zero. Even specialists don't trade much. You need day trader open interest to create puke outs (in size 5-10k shares) at the inflection points which allows the savvy daytrader to get a "free money" entry or exit. I'm hoping that the new rules will entice more day traders (even if its the computerized systems, these trades have to be unwound later in day creating more order flow) to take positions. I'm hoping this will bring back the 5k and 10k order sizes. You need more orderflow in a 2 minute period than the stock can handle creating price abberations. You also need the order flow in a context of volatility(so maybe order flow alone won't help??) so no one wants to take the other side of the trade accept for the savvy day trader who knows a good price when he sees one. The number of favorable entries in stocks has declined from the 10,000's a day, to mabye 50-100 per day. On a borring friday afternoon in 2002 i could easily tally up some amzing profits. All one has to do is pull up a 10 minute chart of a typical high beta midcap stock from 2001 or 2002 and compare it to a chart from this week to get what i'm saying. You will see a 30 cent range compared to a 12 cent range. Hopefully the new rules will spawn more order flow that will serve to increase volatility in individual stocks. For trading to be good you need volatility and large orders. Right now we have neither. Large orders create the short term pricing abberations in the context of the overall volatility. It could be that large orders alone without volatility will still mean trading sucks. But maybe large orders on their own will increase volatiilty some what?? At least maybe the way will be paved for better trading with any uptic in volatility. Any comments?? Am i dreaming to think day trading will pick up?