What will be the end result of the elimation of bullets be on pro firms/traders?

There have been successful traders long before bullets. I was a frequent user of bullets myself and I will miss them however I will adapt just as I have done so many times before. You can't control it but you must adapt to it.
 
Quote from alfonso:





No big deal at all, hey Don? Of course, back when it was legal, I bet anything you were making it out like it was a *huge* advantage. "Look you retail suckers, look what our traders can do!".


Lol.
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LMAO! So true. Don's the ultimate spinmeister cum snakeoil salesman.:D
 
Is it true that hold bothers finally ran out of money and going out of business. supposedly they are asking their traders to take lower payouts :eek:
 
Quote from Newatthis:

This is a non-event. When these traders take the time and effort to actually learn how to trade instead of manipulate the market, they will realize that they are much better off.

Anyone who is scheming to come up with an alternative, missed the point of the SEC's declaration. It is not the product itself that is deemed inappropriate, but the action following the execution of these married puts. There are legitamite uses for them. Trying to pound bids by not trying to get the best fill is clearly manipulative. The action itself of pounding bids is what the SEC is against, not maried puts.
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yeah true but you know what - they gave us fair weapons against the crooked specialist. in the end we are just noise anyway. market is gonna do what the market is gonna do. the pounding bids aspect of the market gave us our own market to trade against eachother and the specialist.

They ought to get on the specialists - like they did. but rewrite some of their rules to make it tougher.
 
I am so completely amazed when I read Don's recent posts on this message board pertaining to this recent SEC interpretation. This is the head of a trading firm? Who with any sanity would publicly beat his chest about deriving some new sort of scheme in which to circumvent the short sale rule given the wording of the recent SEC statement? Why not just go up to Bill Donaldson himself and thumb your nose at him?
His firm nor his traders cannot have any legal edge over any other; that is the irrefutable truth. When he alludes to anything otherwise, he is doing nothing more than touting snake oil. I would not be surprised if S&C magazine and this board sees this and pull the plug on him.
 
Quote from Mecro:




Excellent post.

A few things.

First to all you non-scalpers out there, why is it you think that just because you can use bullets you automatically make money? In fact, most traders get killed on trying to scalp a short. Add commissions and scalping shorts is not profitable at all for the majority at all.

Second of all, check up on a few low volume NYSE stocks the last few days. The ones with heavy shorts are getting stopped dead
in their tracks. Offers are sitting for HOURS if not days. With bullets, that short would actually get filled as traders clean out the specialist book and cover into the short or bring the price down to where a real buyer is willing to come in.
So institutional and high vol retail clients are feeling this as well. There is NOTHING they can do if the specialist is not willing to churn stock between himself to bring the short down to where a buyer will come in.

Third of all, this is an effect on NYSE volume and liquidity. I also can tell that the lower volume specialists are definitely not happy. A lot less day traders to screw over and that means money out of their pocket into no one's. I would not be surprised if traders started going to Naz and Futures. Definitely a slight consideration in my mind.

I want to mention that the decision has not affected my week much at all. Still, it sucks to see free money go by but I have been relying on bullets less and less weeks before that. My concern is shorting a stock without worries of getting filled at a reasonable price because no upticks are coming up. And I am not even talking about scalping a large short, just simply shorting a stock. The whole uptick rule is a bunch of crap nowdays and bullets were a way around it. I will be much happier with no uptick rule than bullets.
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Very true. Most traders washed out in prior years, and now that is more true than ever. And given that the movements of a stock are dictated by the real institutional strength and the specialists, all daytraders are doing is jumping in for the ride, adding liquidity, and in most cases, smoothing out the stocks (since lower volume and liquidity tend to make stocks more volatile and, for average investors, dangerous). Nevermind that the uptick rule is an outdated rule that is no more fair than a downtick rule would be for buying stock.
 
Quote from C Robinson:



so is this true or not? another elite member pm'ed me the same info. i thought it was a "set in stone" rule that the specialist could only buy on a downtick and sell on an uptick. if this is not the case then i am pissed and it is a BIG DEAL!!!!
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I am sad to say but I believe this is one of the reaons for the SEC decision....its about control.

But what do I know. I choose to believe this version and can be educated to change what I believe. But from what I know so far about the SEC...its all about control. Its nothing to do with fairness or market balance. Capitalism is what makes the market go round and round....but its a two edged sword too.

Michael B.
 
while I agree with many of you, in all due respect , you need to learn how to trade. If you want to short 10,000 shares of WYE, you can't do it on a downtick. And in the end if your're not tradring that kind of size, then why bother???
 
dcunited you are right. I use to think that way way I was making alot. Lately, I have just wanted to make enough. And you are right everything I do from now on will be geared towards trading large size. So I can make large dollars.

I now have a reason to totally believe my time should ge spent on longer time frames.

Psycholgists would say my goals are internalized perhaps?
 
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