Possible shake-up by market makers

[KCalhoun]

I've daytraded end of day volatility for 20 years. I made $ trading SOXL during that pop today.

Mms etc are zero fucks given about your microscopic order flow.

It helps if you know eod patterns like short squeezes, VIX spikes etc.

 

[Ayn Rand]

If you made good money today did you sell before 4 PM? With profits booked what is the rational for holding over the weekend where anything can happen? How many traders are holding a position over the weekend?

A large buy program hit the market at 3:59. Market is close to the high of the day, have to hold position over the weekend. Let's buy a lot at high prices on the close?

The close was abnormal. I do not subscribe to the MM theory. However, there is some group/s acting to push the market higher on Friday's, when the market is trending up, so we get weekend headlines like the DOW was up over 800 points today and everything is well in the kingdom.

 

[Jzwu2017]

If you tried to short today’s market you got a lot to learn about trading.

 

[ajacobson]

It's called carpet bombing - used to mark the SPX options that go into calculating the VIX settlement. Google has a fair write-up and it takes some material size.
Frequently it gets run over by some of the upstairs crew and then it becomes really costly.

 

[KCalhoun]

It's called carpet bombing - used to mark the SPX options that go into calculating the VIX settlement. Google has a fair write-up and it takes some material size.
Frequently it gets run over by some of the upstairs crew and then it becomes really costly.

Good point, though it's tougher now with hft algo volume curbing vix spikes

As a retail trader I'm just hunting volatility, like morning MARA breakouts or pair trading TQQQ/SQQQ etc.

Great time to be daytrading, overnights risky here, I'm mostly cash. Small overnights SCO KOLD UVXY COIN MARA RIOT etc

 

[schizo]

Those tiny daily market % moves....are Huge, if you trade options, leverage products.

On the basic, top, surface you see.... a half a percent move, nothing to get erected about. But with options, that move is so much greater, grander, bolder, and magnified.

Trading basic stock is akin to playing with Sparklers, but with options...it's more of a gallon of gasoline or TNT dynamite.

Well, it's always easier said than done (especially in hindsight). Yes, I agree 100% but unless you were the one who clearly got on the bandwagon long before the move even started, let alone you have anticipated the drift up (or down) far in advance, it's just a piper's dream... I'm afraid.

 

[schizo]

Good point, though it's tougher now with hft algo volume curbing vix spikes

That's what I suspect as well. It ain't the MMs who are colluding, it's the HFT all piling in at the same time that are creating these slingshot moves.

 

[MacBookProHo]

unless you were the one who clearly got on the bandwagon long before the move even started,
let alone you have anticipated the drift up (or down) far in advance

Ahhh, This....is where the true trading... wisdom, skill, experience and observation and intuition takes place. The killing fields....that separates the men from the boys. The professionals from the amateurs, and gamblers.

If a trader can reasonably establish the future framework of how the chart is loosely expected to move and look like....and wait for visual confirmation signals....and strike. He or she can make a great deal of money.

Knowing....more or less....what to expect, and when to strike for it.
This is where most/all traders, essentially, fail at. Some may occasionally nail it out of sheer luck....but being able to do this day, in, day out...with a relatively high level of consistency....ohhh,

I can tell you...foresight...is not just a dream for everybody,
Can you imagine being able to trade the S&P, every day -- what would something like that...be worth to someone,

 

[Overnight]

Ahhh, This....is where the true trading... wisdom, skill, experience and observation and intuition takes place. The killing fields....that separates the men from the boys. The professionals from the amateurs, and gamblers...

So when are you going to post your journal? A real writ of what you are doing with your trading life? Are you a man, or a boy?

 

[TheDawn]

You are wasting your time explaining to someone who doesn't understand or wish to understand the role of market makers. Co's like citadel and virtu provide liquidity and narrow the spreads. If they don't get paid the spread will widen just as they are in the OTC.

If they don't get paid, the spread will widen? LOL So we are essentially paying for the "narrow" spread in the market? We are essentially paying for what we are getting back? How is that benefitting us? LOL

You think there is going to be penny spreads if there is no payment for order flows. volume will dry preciptiously..

How is that so? People are going to stop trading all of sudden because traders will be sending orders directly to the market? LOL If not, explain to me how banning the practice of paying for order flows will dry up the volume?

People like you complain about HFT. They have better tools than you. Then people suggest there should be speed bumps to slow them down. It is life.

So you think it's fair that people can false start and frontrun you just because they have the money to buy better equipment and have their trading equipment right next door to the exchanges?

Develop a niche where you are better off than others. remember when you want to close a position you are better off than a financial institution. Your market order is absorbed with no change in price. A financial institution has to work the order and may have to accept a less favorable price.

Having a niche and expecting fair dealing in the market and no market manipulation are not mutually exclusive. Having one doesn't mean foregoing another. And it's not true that retail traders do not have to worry about market orders. We get warnings from IB every single time when we enter a market order no matter how small and get constantly harassed to use price algo from IB when working market orders.

"Learn to make money, not make complaints."

Who's complaining? You obviously have no idea how things work in the market and don't even bother to do the basic research before you troll.