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steven poser wrote:
> I
> worked for one of the best bond traders around for a while. He never
> left stops in the pit. He felt that it was a free option for guys like
> Baldwin, who would rip his granny's lungs out for a tick on a 1000 lot!
Placing stops IS a sucker's move for sure. This is strictly amateurish in
stock trading - it's like being at a poker game and showing the other
players your hand. However, I realize that the excruciatingly slow fill
time for futures (like 30 sec. or more) may make this worth the price. All
the more reason to get a working electronic order book. While we're on that
topic, after reading the propaganda about this, it is ridiculous to suggest
that since most orders are filled by open outcry, it therefore is the method
of choice. Give these traders a reliable system to execute and get a fill
report in under a second, and I guarantee you that few would want to go back
to the old way, which is a truly ridiculous way to trade nowadays. On the
other hand, we still have a LONG way to go yet in the stock market as far as
this goes, but progress is being make at a slow but steady pace. Overall,
the problem is one of reticence by intermediaries, who have been growing fat
on traders since the beginning, and whose usefulness in the markets has been
diminished to a great degree. Eventually, their role will be reduced solely
to that of being agents for principals who do not have the inclination to
trade for themselves, of course in the context of a level playing field for
all participants.
Regards,
A.J.
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