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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Bill Jackson who wrote (107415)	4/23/2000 12:26:00 AM
From: TimF	Read Replies (2) \| Respond to of 1578157

RE: here is a power shift occuring and the clients as well as the companies are becoming empowered and one fine day we will all trade directly with no brokers, market makers etc with an artificial intelligent(really rule driven, but complex) and then the only fee will be what is needed to keep the system maintained. 5-10 years should see it come to pass. That would seem to cover the trading part of the equation, but what about the other functions of a broker? Margin lending, holding stocks for your account, sending you government required paperwork, forms and information, advice and account management for full service brokerages (although I don't use those and those who do want advice can and already do pay directly for it). I do agree that eliminating as much of the middle men as possible is a good idea. I was thinking about investing in one of the middle men Knight/Trimark (NITE) but if maybe it isn't such a good idea. Their fundamentals look great, but if the industry in such flux it might not be worth the risk, besides I understand the company and industry less then with AMD and right now my investable funds are limited. I should have dumped (or better yet never bought) my MSFT sooner. Now I think it might gap down and at the lower price I might want to hold for some chance of a partial recovery to lessen my losses. Well at least if I sell some AMD later this year I can reduce my tax burden by offsetting some of the gains with my MSFT losses :(, at least I have a lot more AMD then MSFT. Tim

To: Bill Jackson who wrote (107415)	4/23/2000 1:24:00 AM
From: Joe NYC	Read Replies (1) \| Respond to of 1578157

Bill. Well in the same way the methods to eliminate front running are well known...namely an electronic matching system. Agreed. The internet lemming effect will become more powerful and some time lag will be needed to stop purposeful manipulation by people who second guess trading programs and sell/buy certain volumes and prices to induce a market move Please explain. How do you induce a market move? Perhaps by buying of selling a lot of shares? which they sell/buy into and make a few tiny bits. Let me see if I follow: 1. Ok, suppose you the stock was at $50. 2. You buy 100 shares at $50 3. Now the manipulation: You put in an order to buy a million shares, driving the price to say $52. You spent between $50 and $52 million. 3. Taking advantage of your manipulated price: You sell into this move - you sell your original 100 shares at $52, realizing gain of full $200. So far so good, the plan is working, except a minor problem: You have a million shares of a stock that you don't want. I think this is the myth of the market manipulation that a lot of people believe exists, but I don't. What am I missing? Anyway, I don't see the manipulation to be the danger of an electronic matching system. Actually, any attempt at manipulation will always be a losing effort in a fully transparent system. But you always leave room to get screwed by leaving stop orders in volatile markets that we are experiencing, especially with illiquid securities. Joe