Penny Scalping/Liquidity/Rebate Traders - What Now?

Quote from psytrade:

I have to say I am still clueless after a week of thinking about it and only a few hours behind a level II. If there is truly some tangible, verifiable and copiable technique, I'd love to hear about it. .. I don't know how, I don't see how, and no one has told me how.. Can anyone show us? And show us HOW at that?
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OMG! you spent a WHOLE WEEK with this!? they stole your frigging life man.. :).. how much do good liquidity traders make? 200k? 500k? and you spent a week thinking about it..

i dont want to come across as the rude, arrogant person that I truly am, but I would like to suggest that when you choose your next strategy for trading that you give it a little more than a week..

trading is like, hard.. its not hand holding.. its more like being in the wild west.. you get a gun, six bullets, a shovel and head off for the horizon looking for a good place to dig..

so, for now the ground looks softer and easier to dig over by the trend traders.. soon, you will notice the momo boys and want to dig with them.. then you will realize that its better to dig with the spreaders.. perhaps you will then decide that emini scalping has gold closer to the surface.. and if you spend a week in each place, you will have a collection of small holes and no gold..

good luck and good digging er, trading..

-qwik
 
Like I said, If it works for you, great. Working at a Slaughterhouse would be more fun than Swifttrade's pathetic model. As for patience and time, I have plenty of that. I simply cut my losses short and left. And I think its important for the vast majority of people who go there to realize their business model is not going to work anymore. The good traders should save their money because they'll need it. I can't wait to see the managers turn the lights off in the building for good, but you can bet they'll get the traders to turn the lights off. It'd also be nice to see the managers in the unemployment line, though their so well connected with the rest of the artifice around them that they might actually survive as Mister Slicks in some other aspect of Marketing.

As for REAL trading, I can think of a dozen more ways to make real money. I already know them. The fact that they actually have money to trade with just gives me the encouragement that I'll be hugely successful at what I do. A trader trying to adopt an inferior style because it's what the manager says is the biggest mistake he can make. Maybe you trade this way because you don't know any better.

Enjoy Your Trades!
 
Funniest thread in a while. And I agree with ALL the posts.

Like the elephant and the blind men, you 'feel' a different beast depending on where you touch.

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I wouldn't be too critical about those traders just trading for rebates. I mean, it's the ECN's providing the rebates and the people(whoever they are) that are willing to hit these orders for millions and millions of shares that are helping the rebate traders.

People are finally catching on and making it a harder game for these guys.

So if it doesn't work no more, find something else that works, if traders can't adapt, they won't do well in the long run.
 
Here is a crazy out of this world idea.

Let's one of these days the ECNs stop providing rebates.

What in the world would all these rebate traders do?
I'm just curious.
 
Mecro, the ECN's are supposed to stop rebating for providing liquidity in the very near future.

Instead of -.003 to remove and +.002 to add, ISLD will be -.001 to remove and free to add.

Not sure when it's supposed to change.
 
I tried the liquidity racket a couple of years ago. At least the fly by night shop I tried it with admitted it would take about month's learning curve. I didn't quit but was told firm was out of money. At least from my experience, I realized you had to trade against the trend alot to get filled and that is not a good idea for obvious reasons. Another problem is if the stock you're in or the market as a whole takes sudden move against you, youre toast before lunchtime sometimes. As Warren Buffett says scaplers are picking up dimes in front of bulldozers.
 
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