<<There's a lot more to it than that, risk evaluation, intelligence, experience, testicles (estrogen?), information sources and systems, research, execution and a host of other things>>
Alex,
You are correct of course. Except intelligence. I think someone of average intelligence who is good with numbers could be a good day trader. The other items I would assume that any day trader already has. Info and systems are easily available and are often included in any setup out there.
I still believe that the ability to maintain your focus and concentration is the most important aspect. The most brilliant guy with the best systems and strategy will still lose money unless he/she can keep it up for several hours per day, every day.
<<There is also a difference between day trading and soes-scalping, maybe you were referring to scalping.>>
Maybe so, there are many strategies for SOES. Some people think that all SOES means is watching MMs for price discrepancies and taking advantage of them. My view of a day trader (SOES or otherwise) is someone who watches the market for developing trends (intra-day) and follows them using level II info to aid in spotting when the nearterm movement is slowing or turning.
I don't see how a daytrader (or scalper) could operate without
level II information. It is a huge insight into the market. Some of the people, on this thread, trade based on technical analysis. While I think it is valid and works, I think that it is much more difficult than using level II and following the trend intra-day.
The main point I would like to make is this. SOES traders are not trying to beat the market makers at their own game. SOES traders are playing a different game that happens to eat some of the market makers profits. They are watching the market for near term price movements. This might take away from the profits of market makers. I will detail this more in my next post.
Jay |
