Although it is considered to be a very tiny elite (no pun intended) club...to be a profitable trader -- what you hear is just the tip of the iceberg
There are many 'best' out there.
Has Day Trading Changed?
- Thread starter HeSaidSheSaid
- Start date
Although it is considered to be a very tiny elite (no pun intended) club...to be a profitable trader -- what you hear is just the tip of the iceberg
There are many 'best' out there.
probably, too many sharks are competing for a little sardine.
http://www.marketwatch.com/story/why-trading-volume-is-tumbling-explained-in-5-charts-2014-07-07
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High-frequency traders are less dominant
Here’s one possible reason why trading volume is down: High-frequency traders remain a huge force, but they’re not powering turnover quite as much as they used to.
This type of trading, which relies on getting information and prices microseconds faster than the next trader, now accounts for 48.5% of overall U.S. stock-market volume, down from 61% in 2009, according to estimates from Tabb Group, a research and advisory firm.
High-frequency trading “added volume when there was more volatility in the market, but as volatility decreased and stabilized, HFT also decreased,” said Garrett Nenner, managing director at Rosenblatt Securities, which provides market structure analysis, in an interview.
Certain HFT strategies that thrive on volatility just aren’t as active today, as a key gauge of volatility touches a seven-year low. Is this a permanent retreat by speedsters, who have gained notoriety thanks to books like “Flash Boys” and “Dark Pools”?
It’s likely temporary, said Sayena Mostowfi, a Tabb Group senior analyst. While regulation might at some point have an effect, it’s not a driver for now, she said. “The two drivers that I would point to would be volatility and seasonal effects,” such as the summer trading lull."
http://www.marketwatch.com/story/why-trading-volume-is-tumbling-explained-in-5-charts-2014-07-07
"
High-frequency traders are less dominant
Here’s one possible reason why trading volume is down: High-frequency traders remain a huge force, but they’re not powering turnover quite as much as they used to.
This type of trading, which relies on getting information and prices microseconds faster than the next trader, now accounts for 48.5% of overall U.S. stock-market volume, down from 61% in 2009, according to estimates from Tabb Group, a research and advisory firm.
High-frequency trading “added volume when there was more volatility in the market, but as volatility decreased and stabilized, HFT also decreased,” said Garrett Nenner, managing director at Rosenblatt Securities, which provides market structure analysis, in an interview.
Certain HFT strategies that thrive on volatility just aren’t as active today, as a key gauge of volatility touches a seven-year low. Is this a permanent retreat by speedsters, who have gained notoriety thanks to books like “Flash Boys” and “Dark Pools”?
It’s likely temporary, said Sayena Mostowfi, a Tabb Group senior analyst. While regulation might at some point have an effect, it’s not a driver for now, she said. “The two drivers that I would point to would be volatility and seasonal effects,” such as the summer trading lull."
Theres a big difference. As a professional i spend 12 hours, at least, a day trading. I pay in excess of £1000 a month for decent trading software and I pay under $2.00 a round turn on most products.
A retail trader is someone that works 9-5 comes home and reads a book on technical analysis and tries to trade the S&P off a moving average cross for an hour or two in the evening.
List of dark pools[edit]
Independent dark pools[edit]
Dark pool aggregators[edit]
Independent dark pools[edit]
- Instinet
- Liquidnet
- NYFIX Millennium
- Posit/MatchNow from Investment Technology Group (ITG)
- Pulse Trading BlockCross
- RiverCross Securities
- SmartPool
- TORA Crosspoint
- ETF One [19]
- Codestreet Dealer Pool for Corporate Bonds[20]
- JPMorgan Chase Bank - JPMX
- Barclays Capital - LX Liquidity Cross
- BNP Paribas - BNP Paribas Internal eXchange (BIX)
- BNY ConvergEx Group (an affiliate of Bank of New York Mellon)
- Cantor Fitzgerald - Aqua Securities
- Citi - Citi Match, Citi Cross
- Credit Agricole Cheuvreux - BLINK
- Credit Suisse - CrossFinder
- Deutsche Bank Global Markets - DBA (Europe), SuperX ATS (U.S.)
- Fidelity Capital Markets
- GETCO - GETMatched
- Goldman Sachs SIGMA X
- Knight Capital Group - Knight Link, Knight Match
- Merrill Lynch - Instinct-X
- Morgan Stanley - MSPOOL
- Nomura - Nomura NX
- UBS Investment Bank - UBS ATS, UBS MTF, UBS PIN
- Societe Generale - ALPHA Y
- Daiwa - DRECT
- Wells Fargo Securities LLC - WELX - has since closed
- BIDS Trading - BIDS ATS
- LeveL ATS
- ASX Centre Point
- International Securities Exchange
- NYSE Euronext
- BATS Trading
- Turquoise
- Swiss Block[citation needed]
- Nordic@Mid[citation needed]
Dark pool aggregators[edit]
- Fidessa - Spotlight
- Bloomberg Tradebook
- Liquidnet LN Dark
- Credit Suisse Crossfinder Plus
- SuperX+ – Deutsche Bank
- ASOR – Quod Financial
- Progress Apama
- ONEPIPE – Weeden & Co. & Pragma Financial
- Xasax Corporation
- Crossfire – Credit Agricole Cheuvreux
- Instinet - Nighthawk
Tight range = harder to profit
Big range (trend) = easier to profit
Prior to 2008, the market was easier in the sense that when tops and bottoms broke, they broke with conviction and markets were more apt to trend. Easy. Now, the typical trend involved multi-leg pullbacks and plenty of noise before resuming. So yes, I think it's a bit harder now.
Big range (trend) = easier to profit
Prior to 2008, the market was easier in the sense that when tops and bottoms broke, they broke with conviction and markets were more apt to trend. Easy. Now, the typical trend involved multi-leg pullbacks and plenty of noise before resuming. So yes, I think it's a bit harder now.
Hmm not sure I agree. I've always been a mean reversion trader. Trending markets are tough for me. The other 70% of the time markets are rangey I usually do well. Markets that are having quick reversals and stops outs are the best markets for me.
I think markets are very much driven by trends now. Qe in the bond and equity markets is huge one way volume flow.
April was the first down month I've had in 3 years.
I find the lack of 2 way trade the biggest reason trading is tough. There are less human traders causing inefficiencies. Orders are broken up so efficiently by algos and markets are so much more efficiently correlated. When volume starts coming in all asset classes start grinding in the same direction. In the past there was some lead/lag. You had differing opinions. But governments won't let bonds or equities drop. It isn't a 2 way market.