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Ron of course your right about commissions and I'm the same way all cost
are overhead. I was referring to the post about having level 2 to level 1
because the guy was saying if it weren't for the fast executions with level
2 then the commissions wouldn't be worth it. I think the executions are the
same for both except reporting fills or quicker with level 2 I think. I
think I'm just a little frustrated trying to learn this level 2 business so
maybe I'll just be quite until I figure this out for myself. Best fills I
have ever had in any market ever is bonds. But you have so many stocks and
only one bond but I appreciate anything you say concerning this subject Ron
as your one of the real traders on this list. Thats who i respect the
people who do it and make their money and try and help others learn.
Robert
Ron Augustine wrote:
>
>Robert,
>
>Can't agree with you entirely on commissions. I always like to keep cost
>and slippage to a minimum, wherever possible. Paying $10 as opposed to
>several times that with brokers like Schwab can add up quickly --
>particularly if you are going for 1/8 to 1/4 point-- either by choice or are
>forced to do so by current Market conditions.
>
>Just to clarify-- the bid/ask itself on Level II when I traded it was
>generally accurate, but can change very quickly. Like 1/10 of a second
>before you submitted your order -- the order is rejected, killed, and must
>be re-submitted -- or worse yet, partially filled. Many times, I've seen
>them vacate the bid just long enough to reject your order, then jump back
again.
>
>What is most deceptive is the size and the depth of the represented bid/ask
>and inventory behind it. After you finish the book, I would suggest
>contacting the authors or some current L2 trader and see if they have any
>later information. When I was in that game, it was changing weekly.
>_____________________________________
>At 12:39 AM 11/1/98 -0600, you wrote:
>>Ron I don't care about commissions never have cared about that but the
>>point was about having level 2.
>>From what I can tell the MM got the advantage and the bid ask can't be
>>believed so why use it. Seems like it would just a distraction and a
>>guessing game with level 2 and MM who has the advantage. If this is so then
>>why not just forget level 2 and trade level 1. I'm reading the electronic
>>day trader now so maybe tomorrow i will understand more. My attraction is
>>the quick executions something that has frustrated me in futures. I am
>>almost close to renting a seat and going up there to get the stupid
>>executions. The futures are in the dark ages compared to stocks its almost
>>ridiculous. Only cure is to trade longer time and hold them overnight and I
>>don't like doing that. Maybe someday soon the commodity folks will catch up
>>to the stocks but outcry has to go
>>and if the foreign exchanges beat ours with electronic trading they will
>>get my business. The exchanges need to quit suing people for staring
>>electronic trading and hurry up. Saw a post that 100 points was average
>>slippage for the S&P for 40 trades, that $10,000 dollars gone thats
>>considered acceptable. Might be but not for me anymore the jerks, screw
>>them I'll either come up there or trade something else the day of being
>>raped is over for me.
>>
>>Robert
>>
>> Ron Augustine wrote:
>>>
>>>If you're looking for fast executions at a low cost-- Datek is probably
your
>>>best bet for $9.99 last time I checked. I haven't traded with them in over
>>>a year, but they had an option to enter an order which would require a
>>>confirmation screen --or-- if you're a real cowboy, they have a server that
>>>will accept your order without confirmation. Datek also didn't trade
>>>Options back then, but was planning to add them.
>>>
>>>When I was trading Level II, I had a Frame Relay link to NASDAQ that
>>>executed a trade typically in 1/100th of a second, with a report back in 1
>>>to 5 seconds. Datek generally provided the same execution in 3 to 5
seconds
>>>over the Net-- which was more than sufficient. Dreyfus is also fast, but
>>>requires a confirmation screen.
>>>______________________________________
>
>
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