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Non-Tech : Meet Gene, a NASDAQ Market Maker

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To: gene_the_mm who wrote (1053)9/16/2000 1:45:55 AM
From: Apakhabar  Read Replies (2) of 1426
 
Gene,

Here's one for an answer off the top of your head:

Consider three daytraders who try to mimic the trading style of MMs...

Trader A has a $25,000 account,
Trader B has $50,000, and
Trader C has $100,000.

Each trader trades with the same degree of risk, protecting his capital by not never exposing too much of it in any one trade. Each tries to end the day flat.

Questions:

What do you think would be a respectable average daily gain for each?

What do you think should be each traders "quit" number, as in, if they lose X money during the day, they must simply stop trading. (A follow-up on this would be do you think quitting after a certain loss is a good idea?)

If YOU were trading with these amounts, how many trades do you think you would make per day and how many shares would you likely trade?

Thanks as always.
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