The more things change.....
Most of you folks weren't trading in '97, so you wouldn't know. This business of of SNET being useless or nearly so, getting filled when it's a stinker and rarely when it's going the right way, etc. is nothing new.
SOES used to be your best friend, with 1000 share minumums and automatic execution. That was BEFORE the rule changes and more importantly and rarely mentioned, this surge in activity. Everybody and his Great Aunt is now a 'daytrader', and if you'll notice, there are only the same number of MM's to go around. At smaller lot sizes no less.
So boys and girls, when the sh*t hits the fan, there will be NO ONE to buy your shares. Save for a few short covers on the way down. The ECN's are fine, but will not save you in a tanking market. No software is able to find a buyer or seller that DOES NOT EXIST. And when everyone is rushing for the same door, there will be some bodies left behind.
Used to be that chasing stocks up 20, 30, 40 percent was a path to ruin. Now you can actually make money that way. I guess the greater fool count is up this season.
While I'm at it, ever notice the press always talking about DT's trading for 1/8's and 1/4's ? Ancient history. I don't think any successful trader is doing that on purpose in this market. "Yeah Mike, I just scalped a big 1/4 in EBAY. Great trade, Steve." Not.
Oh yes, and as to 'limiting risk and controlling losses', the smartest among you figured that one out a long time ago. Open up a daytrading shop. ;-}
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