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Strategies & Market Trends : Your Worst Trading Enemy.. You -- Ignore unavailable to you. Want to Upgrade?

To: Fun-da-Mental#1 who wrote (105)	1/18/2001 11:39:39 PM
From: Brandon	Respond to of 223

I dont use a program to trade so I am certainly not an expert on the matter, but as an example there are programs which do arbitrage with the ECNs. As prices come in on the various ECNs that may present an opportunity for "risk free" profit as small as 1/16, these programs can take advantage of it before the prices can even be displayed on your level two. Other programs will do arbitrage between say common shares and convertable bonds. In options opportunity can exists in moments of extreme volatility, but you need a computer crunching the numbers and executing because they only appear for a moment in time and then are gone. If your friend is looking for some magic technical system that the computer can trade he is probably barking up the wrong tree as Technical analysis is as least as much art as science. But, there are systems out there being used, and with great success. Brandon