to rearden metal ........you are correct......the biggest thing to effect the bis was the quiet continual disapperance of the retail investor...combined with the other laundry list i gave ........by the way ............ever heard of monroe trout.........m
Megadon...Tell me when they're shooting the sequel...WorldCo II. You had told me in a previous post that I should get a hold of Walter, since I worked for him. If you didn't get my response, the only Bruan on my desk was Sloan, who was always cool with the desk. But haven't been in touch with anyone from there in years. If you should find out when the sequel will begin shooting, make sure you let some of us no longer in the circle know.
Yeah, I have to agree with your other reasons why daytrading is much tougher now. Everything except decimalization. <b>Every</b> serious trader has heard of Monroe Trout, but I find him especially interesting, as he's one of many Objectivist (Ayn Rand's philosophy) super-traders. You can add LBR, Dmitry, Niederhoffer, and many more to that list. I heard a strange rumor lately that Trout has recently decided to learn brain surgery. I'm not joking. Any truth to that?
where did you hear that about monroe ......maby its true.......he is getting oldre now.......he lives in bermuda and is now an irish citizen ........also very private ....works with 50 guys in hamilton .........the us govt is after him for 600 mil in tax .......interesting you heard that.........m
victor is also a very interesting guy......im sure you have read his book........if walter wrote a book it would also be great.....all these big guys think differently all of them never stop no matter what their capital position is......and all of them have had problems........their was somthing about leon black in the paper who now has problems........ also a great trader ......and carl icann also a guy worth examining......mike steinhardt same story....if you read his book the story is similar to that of worldcos......................the street dosent change but some guys just do it right .....have the energy to make it really happen....those are the guys to be arround ......................m
I heard about Trout's (rumored) new hobby from a friend with many high level contacts in the industry. BTW, why did you ask me about Trout? Because of my Objectivist name? Not surprising if he's now a tax fugitive. When the government's main function has become taking away our money by force, and then using it to take away our drugs and freedoms by force- they deserve to be fought. As for Vic N., I've done alot more than read his book. I'm one of his many friends. He throws lavish parties at his mansion every summer, and I've attended a few.
reardon, I respectfully disagree with your statement that penny spreads have nothing to do with the more difficult trading environment now. You sound like an intelligent and experienced trader (as I consider myself), but my perspective, based on my own evidence and experience, is that there is no way that the smaller spread could NOT have led to a more efficient market. The ripple effects of pennying, more hyper scalping, more hyper scalping boxes, less liquidity in the quote, 100 price points vs. 16, much smaller minimum tick, etc., all has an effect on efficiency, opportunities and profit potential to the individual trader. Most good traders that I talk to who have been around a while tend to agree that penny spreads was one of the major factors which have impacted trading. I do believe however, that the penny spreads have been a good thing for system traders.
the combo of decimals, ecns, and the eminis, allowed arb programs to take less risk and adjust more quickly. Squishing vol. Decimals also allowed the NYSE specialist to participate in the transaction for the same reason. The specialists went from risking a nickel or more to risking a penny to step in front of you. Decimals also fractured liquidity. Instead people placing larger orders at the figure or at 50 cents. Where large buyers and sellers knew they could do business. The penny spreads caused people to place tiny hidden spliced orders all over the place. Giving the market and traders less reason to explore up to the next figure.
Why would you care about a Worldco II after what happnd with Worldco I?????????................. Oh, I see.... you were not a trader..... you were an employee..................... on the agency desk......nevemind!