How trading changed over the years, and what is the future of trading.

E

ex_broker

Since we are in business of making money on future events not present, we might as well consider how things changed.

Is it true what some hold that there is nothing new on wall st and can never be.

I don't actually believe it, because I find that investors/traders are more sophisticated now than 15 years ago. Computers being a real culprit for that, computers have really helped out people be better at this game.

Now if I am right, (and I am) what does this mean for the future, I'll tell you what it means, it means that price movements will be more and more random.

I am not saying that people won't be able to make money, but we will be forced to become greater duration traders. More time will take to make the same amount of money etc..

Future I think is horrible, bots and lots of bots, screwing the average trader, banks and other institutions just going high tech ballistic reverting price to mean.

Well this is already happening.
 
at first no one is reading my post to short monday

but as soon as I posted this thread I can see number of views for my other thread is increasing sharply

bunch of people checking out my other posts

I just wanted to tell you guys how I am able to spot things quickly and put the two and two together

just to let you know that I am better than most of you

I also know 9/11 is inside job, and that there is ET base on far side of the moon

etc....

PS: no I don't mean that Baron has a Elite Trader base on the moon, rather other ET :p
 
"Doom and gloomers" have been calling for the end of the free markets since I started 30 years ago....(wow, now that we have options on stocks, there will only be guys with theoretical models and computer programs, LOL)....here is a repeat of my take..."Adapt or die" - glass is half full IMO.


I can get the whole article if you like.

www.stocktrading.com/adapting.html


Don
 
<i>"just to let you know that I am better than most of you

I also know 9/11 is inside job, and that there is ET base on far side of the moon

etc"</i>


<b>www.drphil.com</b>... for cases where Douglas and Steenbarger just can't help
 
Traded since 1978...

I started when Merrill Lynch had board rooms and pneumatic tubes....and the brokers room was a singular open space....

Commissions were very high....the markups on bonds were very high etc...

Used to plot hourly data on paper...as well as point and figure on paper etc...
..........................................................

When the Apple 2+ came out...as well as IBM bringing forth the PC...Schwab getting commissions way down to $39.95 etc...
I remember when a manager at Lehman said to me that Schwab would never make real inroads to the real brokerage business....etc...etc...

Then comes Instinet whereas one could actually post between the bid ask on Nasdaq stocks....and then comes ARCA and the ECNS....Now posting becomes .003...and falling etc...

Now public firms who have to include their advertising and bricks and mortar in their prices are riding the $7 to $10 per trade wave...and the others who have volume segments can try the game at .006 vs .002 etc....

Needless to say that the trading game is all about efficiency...
..............................................................................................

Where is it going.....How can the trading game get more efficient ?

Efficiency also requires volume....and the major markets are consolidating as we speak....

The NYSE...the NASDAQ...are doing what they can...with what they have to make provisions for the increases in volume needs...

And remember that volume includes any type of order....Electronic mechanisms do not care what the label is...Stocks...Bonds...Currencies...Commodities....can all provide the labels....The leverage for each label....the origin of the instruments traded....the underlying structure of financial backing and guarantees....segmentation...fragmentation.....customer education...the list goes on....
............................................................................

Trading ...with the advent of the internet is relatively new...and has a long way to go...albeit at a more rapid pace now that volume is going to be a big determinant of success...

...............................................................................

Small will always be good....

The answer to the professional daytrading future is that there will be promising markets to trade for the truly knowledgeable and professional daytrader...

Electronic means do not care about labels.....the professional trader will find the market that best suites their craft.....which may mean...and probably will mean categorical changes as efficiencies in differing markets run their cycles...
 
Quote from ex_broker:



I just wanted to tell you guys how I am able to spot things quickly and put the two and two together

just to let you know that I am better than most of you
More...

Yes the market trembles before your mighty glare
 
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