Zero commissions- how has your trading changed?
- Thread starter zdreg
- Start date
More frequent trades, made less.
The big boys are egging the herd to buy stocks. Take Robinhood for example. You can only buy not short on the free commission scheme. So the big boys are already setting up their exit strategy. If you are long and want to take your profits you need somebody to buy, right. On the next crash the suckers will find themselves with very overpriced stocks. But hey, look at the bright side of it, they bought it for free !!!!!
A workaround for Robinhood customers is to buy inverse ETFs.
I am more willing to do some gamma scalping when managing my option position. I am also doing a little more option trading in general. I trade futures 90% of the time but options seem like a decent bet these days with free commission and the spreads aren't too bad at least on the index options, just wished they traded 24 hours a day.
Over the years I've got several intraday strategies that I've backtested but shevled because they only looked with zero or negligible commissions. But now I plan to forward test them with actual $ at brokers other than IB Pro.
With the return of market volatility and now the zero commissions, I think there will be a renaissance of retail day trading, à la 1990s.
With the return of market volatility and now the zero commissions, I think there will be a renaissance of retail day trading, à la 1990s.
I'm not very familiar with Robinhood but I know that you can emulate shorts with options etc. But speaking about the herd, when the market goes parabolic and everybody and their mother are making money going long, who will care about shorting? People will be staring at the sky without noticing that the floor is gone.
I am also not familiar with RH but was offering a possible workaround for the shorting prohibition at that firm.
I will soon start a thread on the loss in value of RH from zero commissions, which Venture Capitals has valued in billions.