Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (141438)	1/3/2002 12:40:57 AM
From: GraceZ	Read Replies (4) \| Respond to of 436258

No doubt MMs are the ones making the money, they have an positive expected return on their side. When I referred to professional traders I was referring to (and should have said) public traders, I was not referring to market makers. The market maker as opposed to the public trader not only has the spread working for them (as opposed to the spread and commish which is working against the public trader) but they have the cumulative effect of being forced into the market opposite the extremes of the public action. I work every day with a small group of public traders who are all former MMs. As MMs they were extremely successful for YEARS, as public traders most of them are slowly going bust and it hasn't taken very long, six months. When I say small order pushes price what I'm referring to is the tendency for large amounts of small orders to push price around far more than block orders. While a block order might raise or lower price instantaneously, the price reverts as soon as the order is crossed. Sometimes big blocks are executed with little or no concession in price. While a 100 share order during a low volume lull can change price. I'm sure you've seen this occur.