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In a message dated 98-10-29 19:24:14 EST, robertwc@xxxxxxxxxxxxxxxxxx writes:
> Trading level 2 is the advantage trading within the spread offered by the
> MM? Is it the fact that you can see all the representative bids and offers
> from the MM and from that you can get an idea of the inter strength of a
> stock for the short term.
Ummm, kinda. Actually, you can enter an order within the spread with just
ordinary bid/ask quotes. You also don't really see all the bids and offers,
they can be refreshed within a few seconds after a fill, Instinet, and behind
the scenes trading.
> Trying to draw some conclusions on why this could
> would be easier than trading commodities. One big advantage is the 2 to 7
> second fills. This subject has been here before but for those who are
> actually doing it can you post some advantages and disadvantages in
> relation to trading futures. Seems like there are a lot of people willing
> to give you an education on this subject for a fee. So much hype trying to
> get through all the BS is a project of its own. I need a computer e mail
> device that can detect a lie when its written to me. Maybe a picture of a
> nose that would grow has the script continued. Any help would appreciated
> thanks, I'm closer than I was about a decision regarding this.
IMO it's probably harder to learn than commodities, but easier to make money
with once you've learned how. Being able to watch just a handful of futures
lets you learn how they work faster. The advantage to stocks is that if that
handful is not moving the way you want, there are thousands of other stocks to
check out. Commissions are generally higher for stocks. News events affect
stocks more. Not a lot of news events alone will move wheat, but stocks move
from almost any news, even rumors of news. Then there's earnings 4 times a
year. Wheat won't get halted in the middle of the day because some VP ran off
to Brazil. It can take a lot of time and money to learn to trade stocks well.
But if you make it, the rewards can be staggering.
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