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To: Donald Wennerstrom who wrote (15183)	5/15/2004 3:09:58 PM
From: Gottfried	Respond to of 95809

Don, I think program trades are ST and therefore reduce price stability. Gottfried

To: Donald Wennerstrom who wrote (15183)	5/15/2004 3:22:26 PM
From: BWAC	Respond to of 95809

The proliferation of these program trades explains a lot of what we see all day long lately. A decent opening move, a reversal, back to equilibrium and then pinging of shares back and forth in a very tight few penny range from 11am to 3pm. Programs trading programs. And if you think back some, I've complained about what I perceive to be "autobeat" on retail orders. Thats beating any 1000 size limit order by 1 penny. I've experienced that when my orders are routed to MADF for execution. I'd swear they have a program in place to autobeat.

To: Donald Wennerstrom who wrote (15183)	5/15/2004 10:59:12 PM
From: Sarmad Y. Hermiz	Read Replies (2) \| Respond to of 95809

>> I have never seen this type of data before, but the 40.6 percent for principle trading seems high to me Don, Several years ago I had read that one firm (Shaw ?) accounted for approx 10% of NSYE volume by program day-trading. As far as what it means, I think it means that short term volatility will be high. And that successful daytrading by individuals is nearly impossible. The computer programs that do the buy and sell pay use many parameters and input variables. But I think the one group of input they do not use is fundamental data. So the only way for individuals to beat the house is to make a good guess about the fundamentals. Sarmad