Liquidity Trader. Need Help.

Originally posted by MACD_addy
Hey Don, did you just wake up from a coma ? Harvey Houtkin pays you a visit and all of a sudden you think liquidity trading might work. Excuse me while I LMFAO!!! Traders at your firm can forget it. Your commissions are way to high. You need bare bones commissions to play that game, in fact the guys at Swifttrade pay ZERO commissions. That's what makes the liquidity trading model work.

Don't mean to slam you dude, but you have been the last bastion and defender of high commissions forever. Anyone who follows your posts knows that you are always quick to point out how traders who pay higher commissions at firms like yours receive better service, better financial stability (firm stability), etc. . You have maintained that commissions have to remain high in order to cover clearing, software, and all those 'other' costs that make up commissions. How could you possibly think this would be a profitable strategy for traders in your offices?

Maybe this is the contrarian indicator for the liquidity trading strategy... when guys like you start thinking that it might be a viable way to trade, can the end be far off?

One thing I will say for liquidity trading is that it has pulled the curtain back al little on the 'Commission Wizard'. It has given traders a little glimpse into the greasy world of commissions and once the genie is out of the bottle there will be no going back!

MACD
:D :D
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We've been aware of the practice for some time now, we just didn't (and still don't for sure) see the positive benefits to the traders who practice it. As far as rates go, we are always competitive.

Since we don't ever pay or charge ECN fees, it's simply another avenue to approach.

Good Luck...

Don
 
Originally posted by LeesonTrader
Just pound the retail keys on those stocks, buddy
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Don't you mean pound the 'wholesale' keys buddy? IE buy at the bid and sell at the offer for the rebates equals anything but 'retail keys' to me.
 
Kill em' with kindness eh Donny!

One thing I like about you Mr. Bright is that you don't engage in fruitless adversarial sparring. Just put a positive spin on her and move on. Sign of a truly good salesman, love that Vegas charm.

Your statement about the ECN credits is exactly my point however, ECN CREDITS ARE WHAT LIQUIDITY TRADING IS ALL ABOUT. Bright will obviously have to change that if it wants any liquidity traders.

So, as from you to me... Good Luck!

MACD

:D
 
I will qualify my response by stating that I did once work for Swifttrade as a prop. . I no longer do so and have no interest in promoting the firm. I no longer work there for personal reasons, turns out I'm a tough guy to get along ( guess my teachers were right about "not playing well with other children").

At any rate the office I worked at was consistently a top producing branch and Toronto is not indicative of the whole firm. As much as I am loath to admit it, the prop. program at Swift has been quite successful despite itself.

Your take on the compensation thing made me howl! As much as I am sure that the powers that be at Swifttrade would love to pay all their props. a $20 / day salary and all the free tap water they could drink, you are way out on the compensation plan. Not to mention the fact that they wouldn't dream of giving the props a 50/50 split of the profits.

Hey Strange, why don't I get you a commission deal that is significantly less than .01 per share and we'll have the difference credited to my account. That way I won't have to try and make a living with my woefully inadequate trading skills. In fact, I'll probably never have to work again!

Do you spend time wandering around stores looking for under-priced items and then taking them up to the cashier and offering to pay 50% more than the stated price.

Boy, would I ever like to be your broker/dealer... hey Don you better see if you can get this guy to come over to Bright bros.

MACD:p
 
Originally posted by trader963
Your trading should be run as a business......MINIMIZE YOUR EXPENSES!
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Right on. As much as is possible without sacrificing quality, of course. Certainly don't pay for what you don't use or need.
 
Originally posted by stock777
trader963, what we really want to know, is what happened to the 962 traders that came before you?
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Same thing with the 776 before you.:p
 
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