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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: E. Davies who wrote (4667)	10/4/1999 8:19:00 PM
From: Threei	Read Replies (1) \| Respond to of 18137

However I'll bet that there is only one trader behind the NITE we see on most stocks. Probably even 1 trader covering more than one stock (hence the occasional slow response). Anyone know for sure? Eric... I do... as I said I can place order which would show as NITE on level 2 montage and cancel it in second. And I am regular trader, not MM :)Hundreds other traders can do the same if their system has NITE routing. Regards, Vadym

To: E. Davies who wrote (4667)	10/5/1999 1:40:00 AM
From: Don Pueblo	Read Replies (1) \| Respond to of 18137

they often interfere with the natural flow of the market. You might be missing something. The easiest way to understand it, and I am simplifying it, is to imagine that there is one guy at one firm for one stock. There is a different guy at a different firm for that same stock. These guys are doing two three things at the same time: 1. executing client's orders (You have a Schwab account, you enter an order to buy 100 shares of ABCD, that order is executed by the ABCD trader at Schwab.) 2. maintaining an "orderly market". (There is a difference between interfering with a market and maintaining an orderly market. It is fuzzy.) 3. trading for the house. (One of the jobs of a trader is to trade for the firm he works for; the Schwab guy may be buying and selling ABCD for the Schwab house account. This is a money making proposition, theoretically.) Here it is in a thirty second play: The Schwab guy may be long ABCD and the Merrill guy may be short. The Merrill guy is trying to screw the Schwab guy, but the Goldman guy likes the Schwab guy. Wait, the DLJ guy looks like he wants to take that short position away from the Merrill guy. Hold on, the Knight guy wants it too maybe. Nope, it was a head fake, the Knight guy is really working in tandem with the Merrill guy. OOPS! The Goldman guy just shorted a block. That will help the Merrill guy. Wait, maybe it wasn't a short, maybe it was a customer order. Who is this dick on ISLD? Is that the other Goldman guy? Wait, Schwab jumped. Maybe the ISLD bid is the Merrill guy! The Knight guy is screwed. Maybe. etc. etc. etc. NOBODY really knows what anybody else is doing for sure. That's the way the game is played.