You mean those 0.50% money market rates? Yeah if you cannot clear that hurdle....
Retail Trader vs Market Maker and the Winner..?
- Thread starter SmithTheTrader
- Start date
You mean those 0.50% money market rates? Yeah if you cannot clear that hurdle....
Options market makers do not have much of an advantage compared to the 80's and 90's mostly due to the spreads, although they are getting a little wider now.
Most options market makers sell volatility, which recently has been awful. Most of these plays are hedged with the stock, but some are outright plays. The recent bloodshed has hurt quite a few MM's so some are just standing back and letting stocks just fall.
There is no way a retail trader can trade this way unless you have super low commission rates and a big bat to swing with.
So if you want to beat the MM at their game then no you probably can't.
Most options market makers sell volatility, which recently has been awful. Most of these plays are hedged with the stock, but some are outright plays. The recent bloodshed has hurt quite a few MM's so some are just standing back and letting stocks just fall.
There is no way a retail trader can trade this way unless you have super low commission rates and a big bat to swing with.
So if you want to beat the MM at their game then no you probably can't.
Quote from SmithTheTrader:
As a retail trader, there is a question that always comes back and hunt me from time to time..
May be this is an easy question to all the elite trader here ?
We all know that market makers have inherit advantages over retail traders - bid/ask slippage, order flow info, arbitage ..
Is there any chance that any retail trader will beat market makers and success in LONG term ?
As long as you are the "fly on an elephant's ass". They don't notice you and you just go along for the ride. Head to head we don't stand a chance.
I really like this.Quote from optioncoach:
I think the bigger question you need to ask yourself is why you feel the need to beat anyone? Too many people have this ego mentality of trading that they have to beat someone or a specific group. Your goal in trading is to make money and simply accept the fact that there are traders that will make more money than you and traders that will make less. If none of them are paying your bills or signing your checks then @#$% everyone else and just focus on your self and you have a better chance of being profitable.
Fuckin A!
Gets old on ET reading questions about beating this or trading better than so and so. We would all be better traders if we just focused making money.
And for Spindro that would mean at a minimum=
risk-free rate +inflation + annual dues at local stripper club
If you want to "beat" a MM date his mistress and kick his son's ass for not studying hard enough in that private school using your slippage $$ as tuition.
You don't have to beat anyone except yourself. Their game enables you to get fills. Who will fill your order ? The other greasy trader sipping on a big gulp ?
We're all working within the same laws of probability. Some are working much smarter and harder then others.
I would go out on a limb and say work your odds and execution and make certain you have a good broker you can work with...
Cannot believe i responded to this thread but i saw a couple plungers i know so figured i'd have a go at sounding smart too.
Cheers
You don't have to beat anyone except yourself. Their game enables you to get fills. Who will fill your order ? The other greasy trader sipping on a big gulp ?
We're all working within the same laws of probability. Some are working much smarter and harder then others.
I would go out on a limb and say work your odds and execution and make certain you have a good broker you can work with...
Cannot believe i responded to this thread but i saw a couple plungers i know so figured i'd have a go at sounding smart too.
Cheers