DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Threei who wrote (4663)	10/4/1999 8:05:00 PM
From: E. Davies	Read Replies (2) of 18137

NITE is huge MM with many traders placing and cancelling orders. Of course they are. However I'll bet that there is only one trader behind the NITE we see on most stocks. Probably even 1 trader covering more than one stock (hence the occasional slow response). Anyone know for sure? Heck, I could have placed that order as NITE! There is a certain pattern behind MM activity vs. a regular customer order, though I cant see anyway to tell if the MM is "working" a large order for a customer. The biggest telltale sign is that they only bid/offer 100 shares. This tells you immediately that they are ready to use their special privilege of ignoring an order any time the market turns against them. There are no evil MMtraders that are after you. I have never said the MMs are "evil" or any other such nonsense. I have only said that they often interfere with the natural flow of the market. It is therefore important as a trader to attempt to understand the "why" of their behavior. Eric P.S. I just found out that Cyber has granted my wish. They now have a routing method they call "CyberExchange ECN" that routes only to ECN's (or so they say). Good idea.

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