neither TA not FA?

Quote from pauk:

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I think those that make money daytrading are making their own markets from what I gather and 'earning the spread' - something I wish I understood better.

Do you need to be a marketmaker to earn the spread?
Whats the risk in trading in such a way?
how do you do it? Is it easy?
Is it like, if the spread of a stock is 88.50 / 88.56, you put a limit order in to buy at 88.51 and a limit order in to sell at 88.55?? Is that earning the spread??
This newbie would like to see a video of someone 'earning the spread'. [/B]
More...

- Do you need to be a marketmaker to earn the spread?
No. But no commissions & easy short sell rules would help.

- Whats the risk in trading in such a way?
That price moves before your hedge is done.

- how do you do it? Is it easy?
Limit orders around fair value & fast market orders to hedge.

- Is it like, if the spread of a stock is 88.50 / 88.56, you put a limit order in to buy at 88.51 and a limit order in to sell at 88.55?? Is that earning the spread??
Yes. When someone comes to you at your price, they pay the spread & you receive it. [not discussing hedging].

This newbie would like to see a video of someone 'earning the spread'.
- Look at some option quotes.


Quote from Trader_Dante:
I know what that guy was likely referring too but you wouldn't believe me if I told you.
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Ppl here want to believe in stuff.
 
i just watch for major s/r in a few instruments and see how they react when near,actually i just short resistance and watch how it reacts on its way to the the supp,usually reduce on the 1st pullback so i can reshort if it gets a 2nd touch,then watch and see if they are going to break res or drop it for profittaking,if it holds res or just barely scribbles above it in a sideways move ,add....the mean is there on a market profile chart
 

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