TO: All LIQUIDITY TRADERS

As far as I know, the whole game with liquidity trading is that it takes advantage of a loophole that forces market participants (read brokers obligated for best execution) to take stock from fee charging ecn's.

If that goes away , so does the free money.
 
I was just thinking about this again Newbie and I do have a good piece of advice for you. In one of my earlier posts when I referred to liquidity trading as NOT being like 'picking money up off the street', I was wrong! It is exactly like 'picking money up off the street', thing is, went you are bent over picking up that money, you better be careful that someone doesn't come up behind you and kick you in the ass.... HARD!

My advice.... be fast, don't be greedy, and WATCH YOUR ASS!

MACD:p :p :p
 
I've calculated that the users of these fine EliteTrader boards account for approx 175-250 million in net earnings per year, based on their postings.

I feel its a blessing that they find the time while managing that wealth (imagine the tax implications) to post here and share.
 
Originally posted by Scalpa


I wouldn't exactly call it a loophole. They are NASDAQ rules created to protect the investor, or, in this case, the trader. The rules are called "Manning" rules. What the market makers often do is cross the trades to ECNs that are bidding or asking for a lower or higher price than what they are holding your limit order at. The market maker will go out and get a better deal from one of the ECNs, pocket any difference, and then report the fill back to you.

-Scalpa
More...

Who do you think is paying the liquidity traders for their invaluable service? It's either the retail investor OR the MM's forced to eat ECN charges. Probably both.
 
Originally posted by New_Trader01


trader963,

What stocks are you trading and do you go long and short the same time or just one side?
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Long and short whichever side I can get filled on first. I just want to get into a trade then I will work out of it.

Palm
ericy
sunw
jdsu
yhoo
csco
nxtl
 
Originally posted by trader963



Long and short whichever side I can get filled on first. I just want to get into a trade then I will work out of it.

Palm
ericy
sunw
jdsu
yhoo
csco
nxtl
More...

Thanks trader963......that is the kind of information I was looking for.

Does anybody else have some info on how I can reach my goal?
 
Originally posted by New_Trader01


Thanks trader963......that is the kind of information I was looking for.

Does anybody else have some info on how I can reach my goal?
More...

It's actually, very easy... Just buy the stocks that go up and sell ones that go down. You might even make some money by doing this.
 
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