|
PureBytes Links
Trading Reference Links
|
Thought this might be of interest.
http://www.nytimes.com/library/financial/columns/061100market-watch-col.html
Content-Type: text/html; charset=us-ascii;
name="061100market-watch-col.html"
Content-Transfer-Encoding: 7bit
Content-Disposition: inline;
filename="061100market-watch-col.html"
Content-Base: "http://www.nytimes.com/library/financi
al/columns/061100market-watch-col.h
tml"
Content-Location: "http://www.nytimes.com/library/financi
al/columns/061100market-watch-col.h
tml"
<x-html><html>
<head>
<!--PLS_META-->
<meta name="NYT_HEADLINE" content="When Cheap Stock Trades Aren´t Cheap">
<meta name="BY_LINE" content="By GRETCHEN MORGENSON">
<meta name="FIRSTPAR" content=" But it is becoming increasingly clear that online trading is far costlier than most investors think. Moreover, it does little to level the investment playing field. Instead, judging from a
report released last week by the General Accounting Office, online brokerage firms are Wall Street´s latest incarnation of the Wild Wild West. ">
<meta name="DISPLAYDATE" content="June 11, 2000">
<meta name="NYT_SORTDATE" content="20000611">
<!-- 123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789 -->
<!-- 123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789 -->
<!-- 123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789 -->
<!-- 123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789123456789 -->
<!--ELEMENT TITLE -->
<TITLE>Market Watch: When Cheap Stock Trades Aren't Cheap</TITLE>
<!-- ELEMENT META-->
<META NAME="Filingmethod" CONTENT= "Atex">
<META NAME="UnixSlug" CONTENT="../backfield/savekeep/11WATC.W02">
<META NAME="Date" CONTENT="00/06/11">
<META NAME="Type" CONTENT= "story">
<META NAME="AtexNotes" CONTENT="p.1/watch/morgenson/js ">
<META NAME="AtexSlug" CONTENT="11watc ">
<META NAME="AtexHJ" CONTENT="y014.56/0109">
<META NAME="AtexFrom" CONTENT="done-sbn ;06/09,20:02 ">
<META NAME="AtexOp" CONTENT="dacoor;06/09,20:00">
<META NAME="AtexBy" CONTENT="edpage;06/06,12:16">
<META NAME="section" CONTENT="">
<META NAME="subsection" CONTENT="">
<META NAME="End of header" CONTENT="">
</head>
<!--plsfield:TEXT-->
<NYT_HEADER version="1.0" type="main">
<body bgcolor="#ffffff" vlink=#444464 link=#000066 background=http://graphics.nytimes.com/images/back.c.gif>
<table border=0 cellpadding=0 cellspacing=0>
<tr><td align=left width=600 valign=top>
<img src="http://graphics.nytimes.com/images/pixel.gif"; border=0 WIDTH=600 HEIGHT=1>
<table border=0 cellpadding=0 cellspacing=0>
<td align=left valign=top width=60><br></td>
<td align=left valign=top width=480>
<NYT_BANNER version="1.0" type="main">
<img src="http://graphics.nytimes.com/images/1bannewfi.gif"; border="0" WIDTH="468" HEIGHT="40" alt="banner">
</NYT_BANNER>
<br clear=all>
<NYT_TOOLBARMAP version="1.0" type="main">
<map name="maintoolbar2">
<area shape="rect" coords="0,0,75,16" href="/yr/mo/day/"
onMouseOver="window.status='Click to go to the Home Page';return true">
<area shape="rect" coords="76,0,154,16" href="/info/contents/siteindex.html"
onMouseOver="window.status='Click to see site contents';return true">
<area shape="rect" coords="155,0,233,16" href="/search/daily/"
onMouseOver="window.status='Click to search the current site';return true">
<area shape="rect" coords="234,0,312,16" href="/comment/"
onMouseOver="window.status='Click for discussion in the Forums';return true">
<area shape="rect" coords="313,0,391,16" href="/archives/"
onMouseOver="window.status='Click to search the archives';return true">
<area shape="rect" coords="392,0,468,16" href="/marketplace/"
onMouseOver="window.status='Click to visit the Marketplace';return true">
</map>
</NYT_TOOLBARMAP>
<NYT_TOOLBAR version="1.0" type="main">
<a href="/images/maintoolbar2.map">
<img src="http://graphics.nytimes.com/images/maintoolbar2.gif"; border="0" alt="toolbar" ismap usemap=#maintoolbar2 width="468" height="16"></a>
</NYT_TOOLBAR>
<br><NYT_AD version="1.0" location="top">
</NYT_AD>
</td></table>
</NYT_HEADER>
<BLOCKQUOTE><BLOCKQUOTE>
<NYT_DATE version="1.0" type=" ">
<!--ELEMENT DATE-->
<H5>June 11, 2000</H5><br>
</NYT_DATE>
<h5><font color="#ag0000">MARKET WATCH</h5></font>
<NYT_HEADLINE version="1.0" type=" ">
<!--ELEMENT HEADLINE-->
<H2>When Cheap Stock Trades Aren't Cheap</H2>
</NYT_HEADLINE>
<NYT_BYLINE version="1.0" type=" ">
<h5>By GRETCHEN MORGENSON</h5>
</NYT_BYLINE>
<NYT_LINKS_ONSITE version="1.0" type="main">
<table width=175 align=right border=0 cellspacing=0>
<tr>
<td width=15 rowspan=7> </td>
<td></td>
</tr>
<!---BEGIN PICTURE ONE-->
<!--END PICTURE ONE-->
<tr>
<td><hr size=1>
<b>Related Articles</b>
<br>• <a href="/library/financial/columns/052800col-watch.html">Market
Watch: IPO's Say Stocks' Downturn Not Over</a> (May 28, 2000)
<br>• <a href="/library/financial/columns/052100col-watch.html">Market
Watch: Of Information Overload and the 'Efficient' Market</a> (May 21, 2000)
<br>• <a href="/library/financial/columns/051400market-watch.html">Market
Watch: In Bonds, Worrywarts or the Wise</a> (May 14, 2000)
</td>
</tr>
<!---BEGIN PICTURE TWO-->
<!---END PICTURE TWO-->
<tr>
<td>
<HR SIZE=1>
</td>
</tr>
</table>
</NYT_LINKS_ONSITE>
<img src="/images/t.gif" align="left" alt="T">he popularity of online stock trading
has exploded as individual investors
have come to believe that their computers put them on the same level as the
professionals, at a very low cost.
<p> But it is becoming increasingly clear that
online trading is far costlier than most investors think. Moreover, it does little to level
the investment playing field. Instead, judging from a report released last week by the
General Accounting Office, online brokerage firms are Wall Street's latest incarnation of the Wild Wild West.
<p> Government researchers collected data
from 12 online firms in 1999. They were not
identified, but they accounted for almost 90
percent of online trades.
<p> Delays and breakdowns were a big problem -- so common at one firm that it said
management did not track them.
<p> Online firms provide customers with little
information, the G.A.O. found, on the risks of
margin trading -- that is, using borrowed
money to buy stocks. Nearly half the companies did not detail the risks for their customers opening margin accounts; only a third
posted on their Web sites such information
as the list of stocks they would not allow customers to buy on margin. One investor
found he had bought such a stock only when
his broker called to demand $75,000.
<p> But even these problems pale compared
with the difficulties investors have getting
online trades executed at the best possible
price. Good execution is crucial to improving investors' profits. But because the way a
firm handles a trade is not as apparent as
the $8 commission it charges, few investors
understand how important execution is or
how they can be victimized.
<p> Included in the report was a review by the
Securities and Exchange Commission of 29
online brokerage firms. Last year, the
S.E.C. found, more than half were not meeting their obligation to provide the best execution for
their customers' trades. A
major reason is that most
online firms have other
firms complete their customers' trades in exchange
for payments of as much
as 1 or 2 cents a share.
These payments, big surprise, determine where a
customer's order is sent,
even if another market or
trader is offering a better
price. On a 1,000-share sale, a customer
would receive $62.50 more if he got a price
one-sixteenth above the prevailing market.
<p> Of the 29 firms the S.E.C. investigated, 17
"improperly emphasized payment for order
flow in deciding where to send orders." The
regulators said the firms did not even try to
assess the prices available from trading
firms other than those that were paying
them. Indeed, most routed orders to traders
whose execution quality was well below industry averages.
<p> It is high time investors understand that
payment for order flow is corrupting trade
executions at many online firms -- and costing investors a bundle.
<p>Steve Galbraith, a
senior analyst at Sanford Bernstein, an investment firm in New York, said such conduct helped explain the outsized profitability of some online brokerage firms.
<p> "Execution is the securities industry's
best-kept secret, and payment for order flow is part
of that," Mr. Galbraith said.
"You're seeing monopolistic-type returns in what
really should be structurally an economically competitive industry. I think it's
one of <I>the</I> paradoxes of the
market today."
<p> Senator Carl Levin, the
Michigan Democrat who
requested the G.A.O. study,
agreed. "Pay for order flow
is a good deal for the broker but is too often
a bad deal for their clients," he said. "The
S.E.C. needs to get after this problem quickly and aggressively." Until then, investors
are vulnerable to bad executions and the
high costs associated with them.
<p> The S.E.C. should require brokerage
firms to monitor trade executions, tracking
how many trades are done at prices better
than those specified by investors. This is the
information age. Why should investors be
clueless about how much money they are
losing when they trade stocks? <br>
<!--plsfield:NYT_FOOTER--><NYT_FOOTER version="1.0">
</BLOCKQUOTE></BLOCKQUOTE>
<br>
<table border=0 cellpadding=0 cellspacing=0>
<td align=left valign=top width=60><br></td>
<td align=center valign=top width=468>
<NYT_AD version="1.0" location="bottom">
<table width="468" border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="bottom">
<font size=-1>Ask questions about Abuzz, new from The New York Times.</font></td>
<td rowspan="2" width="90"></td>
</tr>
<tr>
<td>
<table width="100%" border="0" cellpadding="1">
<tr bgcolor="006699">
<td width="100%">
<table border=0 cellpadding=0 cellspacing=0>
<tr>
<td></td>
</tr>
</table>
</td>
</tr>
</table>
</td>
<td> <br></td>
</tr>
<tr>
<td> <br></td>
</tr>
</table>
</NYT_AD>
<hr size=1>
<P>
<font size=-1>
<NYT_TOOLBAR version="1.0" type="main">
<B>Home</B> |
<B>Site Index</B> |
<B>Site Search</B> |
<B>Forums</B> |
<B>Archives</B> |
<B>Marketplace</B>
<P>
Quick News |
Page One Plus |
International |
National/N.Y. |
Business |
Technology |
Science |
Sports |
Weather |
Editorial |
Op-Ed |
Arts |
Automobiles |
Books |
Diversions |
Job Market |
Real Estate |
Travel
<P>
Help/Feedback |
Classifieds |
Services |
New York Today
</NYT_TOOLBAR>
<NYT_COPYRIGHT version="1.0" type="main">
<P>
<B>Copyright 2000 The New York Times Company</B>
<P>
</NYT_COPYRIGHT>
</font>
</td></table>
</td>
<td align=left width=14 valign=top>
<img src="http://graphics.nytimes.com/images/pixel.gif"; border=0 WIDTH=14 HEIGHT=1></td>
<td align=center width=140 valign=top>
<img src="http://graphics.nytimes.com/images/pixel.gif"; border=0 WIDTH=140 HEIGHT=2>
<table width="140" border="0" cellpadding="0" cellspacing="0" bgcolor="#ededed">
<tr>
<td colspan="5" align="center" valign="bottom" bgcolor="black"></td>
</tr>
<tr>
<td align="center" valign="middle" bgcolor="black" colspan="5"><font face="helvetica,arial" size="2" color="white"><b>MORE TRAVEL DEALS</b></font></td>
</tr>
<tr>
<td width="1" align="left" valign="top" bgcolor="black" rowspan="3"><img height="4" width="1" src="http://graphics.nytimes.com/ads/autoeurope/ae-spacer.gif";></td>
<td width="2" align="left" valign="top" bgcolor="white" rowspan="3"><img height="4" width="2" src="http://graphics.nytimes.com/ads/autoeurope/ae-spacer.gif";></td>
<td width="138" align="left" valign="top" bgcolor="white"><br>
<p>
<b>Save On Rental Cars</b></font>
<br>
<font size="2">Up to 10% off and free upgrades in select European countries.</font>
</p>
<p>
<a href="http://ads.nytimes.com/RealMedia/ads/click_lx.ads/www.nytimes.com/library/financial/columns/061100market-watch-col.html/0/Right3/auteur13/autoeurope602-140.html/64726f6578?_RM_REDIR_=http://www.autoeurope.com/includes/specials/airhotel_spec.cfm";><font size="2" face="helvetica,arial" color="#000064"><b>Business Travelers Package: Save up to 40% on Business Class Airfare</b></font>
<br>
</a><font size="2">Includes roundtrip business class fares, free cellular phone rental and free airport transfer.</font>
</p>
<p>
<a href="http://ads.nytimes.com/RealMedia/ads/click_lx.ads/www.nytimes.com/library/financial/columns/061100market-watch-col.html/0/Right3/auteur13/autoeurope602-140.html/64726f6578?_RM_REDIR_=http://www.autoeurope.com/includes/specials/car_specials.cfm";><font face="helvetica,arial" size="2" color="#000064"><b>One Car Class Upgrades</b></font>
<br>
</a><font size="2">Receive a free one car class upgrade in select European Countries.</font>
</p>
<p>
<b>Hot Deals On Air & Hotel Services</b></font>
<br>
<font size="2">Save 5% off any airfare and 10% off any hotel stay.</font>
</p>
<p>
<b>Sign Up For A Free Travel Newsletter...</b></font>
<br>
<font size="2">...to receive weekly travel deals and be entered to win a $20 prepaid calling card.</font>
</p>
<p>
<b>Prestige & Sports Cars</b></font>
<br>
<font size="2">Drive a dream in Europe, from Ferraris to Lamborghinis.</font>
</p>
<p>
<b>Chauffeur Drives & Transfers</b></font>
<br>
<font size="2">Fulfill your highest expectations with our chauffeur services.</font>
</p>
<p>
<b>Travel Into Eastern Europe</b></font>
<br>
<font size="2">The ONLY company that allows you to pick up a vehicle in over 9 western European Countries and drive throughout Eastern Europe.</font>
</p>
<p><font size="2">Please click on an offer for additional details. Restrictions may apply.<br>
</font></p></td>
<td width="2" align="left" valign="top" bgcolor="white" rowspan="3"><img height="4" width="2" src="http://graphics.nytimes.com/ads/autoeurope/ae-spacer.gif";></td>
<td width="1" align="left" valign="top" bgcolor="black" rowspan="3"><img height="4" width="1" src="http://graphics.nytimes.com/ads/autoeurope/ae-spacer.gif";></td>
</tr>
<tr>
<td align="center" valign="middle" bgcolor="black" width="138"><font face="helvetica,arial" size="2" color="white"><b>VISIT OUR WEB SITE</b></font></td>
</tr>
<tr>
<td width="138" align="center" valign="middle"><img height="20" width="1" src="ae-spacer.gif" align="absmiddle"><b>www.autoeurope.com</b></font><br clear="all</td">
</td>
</tr>
<tr>
<td align="center" bgcolor="black" colspan="5"><img height="1" width="140" src="http://graphics.nytimes.com/ads/autoeurope/ae-spacer.gif";></td>
</tr>
</table>
</td></tr></table>
</NYT_FOOTER>
</body>
</html>
</x-html>From ???@??? Mon Jun 12 18:38:48 2000
Return-Path: <listmanager@xxxxxxxxxxxxxxx>
Received: from mail.pajo.com (mail.pajo.com [216.116.96.4])
by purebytes.com (8.9.3/8.9.3) with ESMTP id NAA26960
for <neal@xxxxxxxxxxxxx>; Sun, 11 Jun 2000 13:19:11 -0700
Received: from REALTRADERS.COM ([208.179.56.198])
by mail.pajo.com (8.9.1a/8.9.0) with ESMTP id NAA06338;
Sun, 11 Jun 2000 13:23:49 -0700
Received: from ns1.infowest.com by realtraders.com
with SMTP (MDaemon.v3.0.3.R)
for <realtraders@xxxxxxxxxxxxxxx>; Sun, 11 Jun 2000 13:11:17 -0700
Received: from triumph (216.190.29.42.wookie.infowest.net [216.190.29.42])
by ns1.infowest.com (Postfix) with SMTP
id 2730520F62; Sun, 11 Jun 2000 14:17:02 -0600 (MDT)
Message-ID: <00c101bfd3e1$da07a660$2a1dbed8@xxxxxxx>
From: "Prosper" <brente@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
References: <20000609.204753.-3645441.0.rmac@xxxxxxxx>
Subject: [RT] Re: Gann Power Scale
Date: Sun, 11 Jun 2000 14:15:54 -0600
MIME-Version: 1.0
Content-Type: text/plain;
charset="iso-8859-1"
Content-Transfer-Encoding: 7bit
X-Priority: 3
X-MSMail-Priority: Normal
X-Mailer: Microsoft Outlook Express 5.00.2314.1300
X-MimeOLE: Produced By Microsoft MimeOLE V5.00.2314.1300
X-MDaemon-Deliver-To: realtraders@xxxxxxxxxxxxxxx
X-Return-Path: brente@xxxxxxxxxxxx
X-MDRcpt-To: realtraders@xxxxxxxxxxxxxxx
Sender: listmanager@xxxxxxxxxxxxxxx
Precedence: bulk
X-MDMailing-List: realtraders@xxxxxxxxxxxxxxx
X-MDSend-Notifications-To: listmanager@xxxxxxxxxxxxxxx
Reply-To: brente@xxxxxxxxxxxx
Status: O
Now this is interesting, I wonder if it can be or has been put into easy
language by someone. Also a picture of the square would be helpful.
BTW caught my limit trout fishing yesterday maybe I should become a
fisherman and give up trading: )
Prosper
----- Original Message -----
From: Ronald McEwan <rmac@xxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, June 09, 2000 6:47 PM
Subject: gen: Gann Power Scale
> I have been reading about what some of the Stock Market Physicist refer
> to as "Power Scales". I think they are referring to something like
> Fibonacci or Gann price time relationships. This is a chart of the Oex
> (hi, lo, close) back to Dec 1996. This is an update of a chart that
> (believe it or not) was constructed a few years ago. I entered the Oex
> low for Dec 17. 1996 (347 split adjusted) into a Gann Square. The
> horizontal lines are the numbers from the (horizontal) center row of the
> Gann Square.
>
> Ron McEwan
|
![http://graphics.nytimes.com/images/pixel.gif"](http://graphics.nytimes.com/images/pixel.gif"){kind=link}
![http://graphics.nytimes.com/images/1bannewfi.gif"](http://graphics.nytimes.com/images/1bannewfi.gif"){kind=link}
![http://graphics.nytimes.com/images/maintoolbar2.gif"](http://graphics.nytimes.com/images/maintoolbar2.gif"){kind=link}
![http://graphics.nytimes.com/ads/autoeurope/ae-spacer.gif"](http://graphics.nytimes.com/ads/autoeurope/ae-spacer.gif"){kind=link}