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>MM are well enough capitalized, they are into the stock long term, and
>they usually have a retail book behind them in with some supply and
>demand just in case. They work together and are very interested in
>punishing daytraders, whether you're scalping or not. They know who
>you are, and they know who plays their way on their stocks.
The MM and the SOES traders live by different rules and each has
advantages/disadvantages. For example, once a MM is on the inside
market, he theoretically cannot back away from the bid or ask. On the
other hand, MMs have level III windows. I don't view MM actions as
punishment as much as competition. They are in for the long term
and they want to take as much money away from the table as they can.
As old SOES methodologies fail (due to changed rules, changed
market, or smarter MMs), new ones are being created. One
thing the SOES trader cannot successfully do is play the MM game.
That is attempt to sell at the ask and buy at the bid. Through ECNs
allow them this ability, they way the market moves precludes making
money with this methodology.
== Rob ==
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