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

To: Tai Jin who wrote (7276)	3/11/2000 5:25:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 18137

NASDAQ believes that decimalization will cause major problems. I have no reason to doubt them. The major problem that they have cited is the required bandwidth, which current feeds will not support. No, I don't think there will be substantially more trades as a result. (Although there will be more opportunity for scalping.) But I don't think that people will use round numbers. Given the opportunity to put in orders at penny increments, people will. Even you admit that that's likely in the first few levels. Well, the first few levels are where all the action is.

To: Tai Jin who wrote (7276)	3/11/2000 5:27:00 PM
From: LPS5	Read Replies (2) \| Respond to of 18137

I'm nearly certain that decimalization will result in far more volume that we presently enjoy for two reasons: In active stocks with a penny ($.01)increment, traders will clamor over one another to jump (by the space of a penny) in front of a bid or under an offer, resulting in a flurry of heavy activity particularly near support and resistance points (or due to event driven activity) in certain issues; In currently inactive stocks, I believe that the arrival of a nickel increment ($.05) will turn them INTO active - at least more active - issues. Just my opinion. LPS5