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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: TraderAlan who wrote (12045)8/6/2007 4:50:46 PM
From: gaj   of 12617
 
thanks for the info. on that. i've now seen it on a couple stocks i traded (on nyse) where that pocket happened, and i had to resist my instinct to get out IMMEDIATELY (i try to have very low risk trades) and give it a little more wiggle / time to see how things react.

nice part for me is i'm usually looking for 1-2 hour trades, so that increased vol. works right into my sweet spot when i'm trading well. and it opens up a whole nother world of stocks i normally didn't look at.

i can understand, however, how it can totally mess with you and your style.

from my older days, where i worked as a techie at a (then-major, non-equity) house...there was serious black box testing every day by middle office. however, the OTC stuff was priced according to internal evaluations. when those internal evaluations (different from the street) were deemed wrong by higher mgt, there was a huge write off. but that was during good times, when spreads were much wider in that area than now.

when i hear of things such as BSC's stuff last couple weeks with their re-evaluations, i think back to that.
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