Read the article, it is clear that you cannot grasp the new reality of how trading is dominated by automated transactions.
"" if you can sell on widget at $100 you must be able to instantly sell a million at that price, right?""
Yes actually if the knowledge of the benefits and costs are spread among the entire population instantaneously.
Imaging all the traders in the world occupying a massive gymnasium with the terminals and whatever else is required. They all get basically the same news at the same time and the opportunities for speculated profit are gone after one second.
This is the world that computerized trading and news flow has created. You sitting in your shack with your 'level 2' will never compete effectively on these time scales,
The board genius scientist and engunear has this to say about the profits of computerized trading.
"I see, so there is money to be made if they traded just enough shares to start to move the price.
If so they would do so. Why can't you accept that."
I accept numerical reality, I can give you a dozen books on the market that confirm it. It would not pay the salary of the person trading. Funds do not trade a few thousand shares because even if they "make money" it is (for them) an insignificant amount.
"The salary of the person trading" ??????????????????????????????????????
I guess hawcreek thinks a computer issues an order for a trade and then passes it on to a 'person' to make the trade...
Now how funny is that..........
His pet theory that there is mispricing of stock due to low volume is completely incorrect in todays market.
WSJ " How to Rock at Lower Volume "
Note in the comments, by Brian Kullman
""The armchair wisdom was developed before the advent of computer-driven trading. I don't know how such an article could be written without reference or regard to this modern phenomenon.
I seem to recall that computer-driven trading is the majority of volume in recent years. Could it be that the "quants" on Wall Street have collectively harvested most of the opportunities for micro profits from high-volume, rapid trading with their computer-trading programs? Banks keep reporting that their trading desks are "underperforming"."
And the follow up by the story author.
This is Ben Levisohn, the article's author. You're absolutely right that computer driven trading is a massive amount of volume these days, as is trading around ETFs. "Real money" trading, meanwhile, is pretty low these days. I'll have a blog post about the subject on Tuesday.
Thanks for reading,
He notes that people trading is a small factor. Anybody who gets that through hawfaeces thick head gets a booya.
I see, so there is money to be made if they traded just enough shares to start to move the price.
If so they would do so. Why can't you accept that.
WSJ " How to Rock at Lower Volume"
"""There are times stocks go up and down on high volume, and times they go up and down on low volume," says Jeffrey Yale Rubin, director of research at Birinyi Associates in Westport, Conn. "Volume doesn't matter."""
Yeah Hawcreek the swamp shack trader knows that computer trading systems take lunch breaks and decide for some reason to not make winning trades..
And yet he expouses his wisdom without even having any grasp of freshman statistics. Guess that leaves him without any capability of understanding statistical arbitrage trading or any of the other very basic systems.
He is an old fossil.
Blah Blah Blah..
Computer trading machines are not leaving money on the table, period.
They can still sell until they force a price correction to expected value, which is what they would do.
Hence your mispricing theory is still misplaced.
So everyone is in on the scam.. Why don't some sell into overpriced market.
Hear that military professionals, this kook wants to spill your blood so we look like barbarians, nothing more.
How do you feel about that ??
And if you are one of the "herd of competing minorities" how do you feel about that ??
Clearly written by a jakazs.
Sounds a little like he wants some quiet time with Putin.
No never on this board, however when beaten he usually drops the particular point from his arsenal.
He has given up many over the years.
My personal favorite is his " The USA has a much more difficult time with medical care because of the racial diversity we have"
OR the " You can't average thermometer readings to increase significant digits "
Or the " Companies are naturally safety oriented and don't need oversight from OSHA.
The list is long.
Now the ole SOHBEE will deny it all cause the posts are gone but those who have been here a while will remember.
Sounds like it needs fixing. That is definitely dirty business.
That is not what 60 min was discussing.
And yes I would call it a free market. What it amounts to is reneging on the offer to sell
when they have the privilege to do so. Sort of a bait and switch. Anyway its a zero sum
You mean the sixty minutes article about the group that front ran trades ??
If so what does that have to do with the present topic.
""Improving Job Market Propelling Rebound in U.S. Growth: Economy""
""An improving job market and increasing factory production in March contributed to a jump in the U.S. index of leading indicators that signals the pace of economic growth is poised to snap back.
The Conference Board’s index, a gauge of the outlook for the next three to six months, rose 0.8 percent, the most since November, after a 0.5 percent gain in February, the New York-based group said today. The measure’s 6.1 percent advance over the past year is the biggest since July 2011.""
Yes their all against YOU !!!
Whats that central limit theorem thingy ??
Oh.. never mind you never took stats in your rock curriculum.
And yet what percentage of distressed loans actually went to fan or fred??
Your pet theory ( like most of your pet theories ) does not hold up to reality. Its fine for making you feel smug , just don't talk to anyone intelligent.