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Bonder, James Bonder Wrote:
***You have learned and earned, with hard work, an edge. But the true
edge will always and forever be their domain in their game.
I used to think this was true. They always have the execution edge in
the pit. But with the EMini some of that edge is mitigated. If the
exchange were to dual list the S&P on Electronic as well as in the
pit, even with contract limits as in EMini, it would improve the
off-floor execution edge dramatically (for small traders). The pit
IMHO caters to the big boys who swing hundreds or thousands of cars.
Electronic markets favor the small operators and take the execution
edge away from the pit.
However, the true edge IMHO isn't execution, it is not having to
trade. If this assertion is true, then monthly expenses like data
feed, internet connection, office rental, and variable expenses like
commissions play a significant role in who succeeds and who does not.
This is true because someone who has zero outlay each month and who
has a big warchest to work from has the advantage of being able to
learn to trade at his own pace, while a small account with large
monthly fees will be in a hurry to get in there and make some money,
generally with the opposite results.
Patrick White
My $.02
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