Thanks for the kind words. I am not trying to come across as arrogant, or imply that small investors have no chance in this game. On the contrary, small investors and short-term retail traders can do extremely well, as I did before I got my present job. The key is to hit singles and doubles consistently, and not go for a home run every day. Hitting singles and doubles is much easier by piggybacking on the clear, distinctive buying and selling patterns that big money creates in mid and large cap stocks, rather than worrying about MM positions on level 2 screens in penny stocks. The latter is a waste of time at best, and a ticket to the poorhouse at worst.
I also want to reply to a post Ben made to me, in which he stated the following:
"If they burn us the little people we will not indulge in that stock again and go somewhere else. In addition, the MM will have a bad reputation and will eventually loose in the long run. In summary, a smart MM is one that works predictably, his clients us, will want to do more business there. Take this tid bit of info to your next MM meeting and tell them. After all we are in business together, We buy
they sell, we sell they buy, we should work together as a profitable team, not as a bunch of vultures."
I've printed out that post and will be taking it to work tomorrow, where the traders on the desk will get a huge laugh out of it. Ben, if you think you are a client of mine or any other MM, or that we are in business together, or that I will not use every technique possible to out-trade you and take your money in any way I can so I can put braces on my kid's teeth and send them to private school, you should put all your money in an index fund and watch the game from the sidelines. The only "clients" I have are $20 billion mutual funds and hedge funds open only to the extremely rich. This is an extremely important point to understand if you are serious about playing this game.
I am more than willing to be a resource to those who have intelligent questions about how the game is played on the inside, since I think the 56 and associated threads have some good qualities or I would not be posting here...so far I've been pretty disappointed with the responses. |
