<<If the spread in a stock is 1/2, I can buy 1/16th above the Bid and sell 1/16th below the Ask all day long for a 3/8th gain.>>
I think this was in reference to a point that SOES traders 3 to 4 years ago could do this with little effort. Today, with spreads smaller, it is still possible, but much more difficult.
I don't do it unless I am really feeling fearless -- it's not for the faint of heart. You can lose money fast! It is impossible to do in a fast moving market unless you type faster than I do, and I type 93 wpm. Some Block Trading traders are very good at this using Cybertrader.
Good stocks to do this with trade about 500,000 shares per day and have high betas. LSCC, MRVC, RMBS, WAMU, JBIL, VTSS are pretty good choices...as recently as December, you could do this with YHOO. No More. |
