Get off your freakn high horse. This is a trading forum where people have made millions of dollars trading with bullets. If they want to discuss it, what is it to you? Are you that bitter? Or just such a superior trader to everyone else that it makes you feel better to constantly condescend others. Don't read the freakn thread if you don't want to hear people discussing different styles of trading. What a joke, you are the one that needs to GET OVER IT.
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why all the crying about bullets?
- Thread starter daytraderpete
- Start date
Get off your freakn high horse. This is a trading forum where people have made millions of dollars trading with bullets. If they want to discuss it, what is it to you? Are you that bitter? Or just such a superior trader to everyone else that it makes you feel better to constantly condescend others. Don't read the freakn thread if you don't want to hear people discussing different styles of trading. What a joke, you are the one that needs to GET OVER IT.
Quote from FireWalker:
Bullets were a HUGE edge on NYSE. If a 10000 share market short appeared on the tape, you could put up the bullet and hit the bid. Good for .25-.50 with .01 risk + spread. Cover on the first uptick as the short is lifted.
LOL what? Maybe 3 years ago, but in no way this past year. 25-50 cents on a 10000 market short? No way. Maybe on the very very low volume stocks and that is assuming you actually get in within 10 cents of the short and right right away.
The risk, BTW was quite big. If too many traders got in and the short is lifted in one shot or pulled it ended up you getting screwed for 20 cents. And that happened very very often.
Oh wait, there is also the scenario where the market short is limited. It was great to have ur market order scooped and filled 15 cents down, just to see the market short barely move since it was limited.
You are making bullets sound like automatic money, which they in no way were. Bullets actually gave the specialists another way to make more money by screwing most day traders over. Now, they cannot even do that and a market short basically sits and waits for buyers.
The number one reason for using bullets as a real trader was the ability to short a stock at a reasonable price as the stock price is dropping. Just a way around the idiotic uptick rule. And it was in no way illegal. Specialists short whenever they want and that isnt illegal.
The only ones truly getting heard by this decision are the prop firms and the clearing jobs at stake. Most traders DID NOT MAKE MONEY with bullets. Most specialists actually made a little extra something from screwing day traders, saw more liquidity and were able to provide much faster fills for their customer orders. Most institutional traders were able to get better and faster fills IF they knew how to manipulate the day traders.
Noone really stands to gain from this decision. I think that it really had nothing to do with the day traders but other issues. But who really knows.
Quote from bjb1963:
Get off your freakn high horse. This is a trading forum where people have made millions of dollars trading with bullets. If they want to discuss it, what is it to you? Are you that bitter? Or just such a superior trader to everyone else that it makes you feel better to constantly condescend others. Don't read the freakn thread if you don't want to hear people discussing different styles of trading. What a joke, you are the one that needs to GET OVER IT.
I short all the time so of course im interested in the topic....but BULLETS ARE OVER punk! Im just suggesting you EVOLVE.
Of course the boys at the big firms illegally short all the time with no consequences....why don't you just join them?
I thought that bullets were covered sells. Can someone please explain to me how bullets can be illegal? I thought that the firms owned the easy to borrow stocks and for that reason, traders who worked for the firms were able to sell the stocks (i.e. the traders could sell the stock without owning it because the firm they were associated with owned it).
If my understanding of how bullets worked is flawed, I'd appreciate clarification from the more knowledgeable.
Thanks
If my understanding of how bullets worked is flawed, I'd appreciate clarification from the more knowledgeable.
Thanks
Quote from spyderman:
My understanding is it is all about INTENT. It is illegal to get a short off on a downtick, and the intention IS to do just that with a bullet.
But when you go short using a bullet, aren't you really just selling stock that your firm already owns? So you are not really going short at all and so the downtick rule should not apply. Thanks
Quote from OxonianTrader:
But when you go short using a bullet, aren't you really just selling stock that your firm already owns? So you are not really going short at all and so the downtick rule should not apply. Thanks
You're right.....be interesting to know what made the SEC move on this....I would guess "someone" complained .. for whatever reason.