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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (2918)	2/10/1998 1:00:00 AM
From: Robert Graham	Read Replies (2) \| Respond to of 12617

This has little to do with your position on SOES as outlined in past posts. For a refresher, I was disputing the effectiveness of DRRISK's approach to trading. You were supporting it with the peculiar statement that there are thousands of traders making money, peculiar as a response to my skepticism over his exuberant (I am being very conservative here) approach and statements made about his first experiences with Level II. I was obviously not contesting the assertion that day traders cannot make money. But in your efforts to be obtuse, you did align yourself with the assertions of DRRISK by offering your statement as a counter to my observations on DRRISK's risky approach to trading. Perhaps you do think that what DRRISK is demonstrating is the actual method "successful" trader's utilize with their Level II machines. But with your apparent position on SOES trading, what was the problem in understanding the type of trading I was directing my concerns at? You know me well enough by now, or at least you should know me, on my stance on trading. I think that type of scalping that SOES players perform I think is for at least most people, particularly the approach it can encourage as evidenced by the posts in question, a game for fools. But I still attempt to keep an open mind. However, it is difficult to keep an open mind about the way DRRISK presented his experiences and methodology with Level II as for instance where he thinks it places the trader on par with the MM, in his assertions and reassertions that the Level II screen reveals the machinations the MM employs to manage the trade against the trader, that with Level II he essentially stated that he was in control and this made it easy for him to profit from MM activity, and he even implied in his posts that it made trading predictable. All this from his first expierience with such a system. Some quotes to review: "I...did 10 trades on the first day and 68 on the second day". "...it is not unusual to trade up to 200X or more per day". "Its like driving an 18 wheeler. Once you figure the gear systems, no one wants to get in your way." "Level II permits you full advantage against the market makers and institaneous executions on inefficiencies on their bids and offers." "I am also amazed and the capacity to execute in and out scalping 1/4 or 1/8 was incredible. The trading I did was so extraordinary that I felt that I was literally on the floor with the MM's." "I was in and out of OXHP five or six times after I heard of Micheal Price's purchase of the stock on CNBC, I had institaneous trading with the execution...and the MM's ran the stock within 2 seconds of the statement and I had already executed a trade what a rush". Then he gets into a philosophical treatise on how he is using his SOES trading activity as an investor to "master the next level of market information...I feel for me the market is a life experience to be assimulated...always looking for competition that permits me to express my own need to succeed and master new frontiers". And so forth making his first experience with Level II close to that of a religous experience. This reminds me of some people's first experience behind the wheel of a very high-performance sports car. The car ends up usually being a bit much for them to handle. As a side note here, the quotes from above were just a pasting of printed "sound bytes" and no attempt was made to misquote. I can understand his glee if this was just a person in their hobby such as sports cars who discovered the next greatest thing that excited him and his experience made him feel that it competes with sliced bread as an "awsome and cool" invention such as the high-end computer engineered and computer integrated Corvette. But this is not a hobby. This is a very serious game involving much money and a way to make it or lose it in a very, very efficient way: Level II with easy electronic execution. Anyone who feels "in control" to make "easy" work of MM activity and thinks with little or no SOES experience that he can do SOES as he attempted to demostrate with his Level II machine needs to reaccess who they are as traders. Wouldn't you agree? Or is this the correct frame of mind to approach trading? Do you find anything a bit risky if not perverse in the above outlined approach a trader took to thier first experience with Level II and the trading techniques he has demostrated? My first concern was for him now that he has a tool he either can use prudently in his attempts at "assimulating" the market, or he can use this as means to financially shoot himself. My next concern was about the newbie and how they may be swayed into thinking this is what trading is all about and run out to get their Level II system so they can be "pinball wizards" too. Of all people I would think you are one that would understand this. What is difficult to understand here? Bob Graham